Editorial | Hong Kong’s American businesses have nothing to fear in city they call home
US advisory warning of risks in wake of city’s local national security law appears out of touch as firms continue to seize opportunities
The United States has updated its Hong Kong Business Advisory to warn of risks after the city’s passage of domestic national security legislation six months ago. Sadly, the announcement from the US Treasury, commerce, homeland security and other departments accentuates a steady and inaccurate drumbeat of alarm about the state of doing business in the city.
Hong Kong adopted the Article 23 legislation, required under the city’s Basic Law, or mini-constitution, in March, the local counterpart of the national security law imposed by Beijing in 2020. The US advisory warns the ordinance may pose “heightened risks” for firms and individuals operating here, saying authorities may use the law’s “broadly defined offences” to prosecute those engaging in routine business activities such as market analysis or due diligence.
It also labels the city as a significant transshipment point for Russia to source dual-use goods for its war in Ukraine.
Hong Kong’s record of close business ties with the US dates back decades. Washington has a long history of support for US business in the city, running a rare trade surplus and basing a huge diplomatic mission here.
As such, the warning appears remarkably out of touch, as does a travel alert for US visitors to “exercise increased caution” due to the “arbitrary enforcement of local laws”.
