Hong Kong Watch welcomes updated US Business Advisory on Hong Kong

Today, the US Departments of State, Agriculture, Commerce, Homeland Security, and Treasury jointly released an updated Hong Kong Business Advisory, warning US businesses about risks to their operations and activities in Hong Kong. The last one was published in July 2021. 

The Business Advisory warns that businesses operating in Hong Kong, as well as individuals conducting business on such companies’ behalf, are subject to the broad and vague provisions of the National Security Law (NSL) and the Safeguarding National Security (SNS) Ordinance. The Advisory states that businesses should be aware that the extraterritorial application of the SNS Ordinance could impact businesses and individuals outside Hong Kong; businesses operating in Hong Kong face potential legal, regulatory, operational, financial, and reputational risks, including of increased scrutiny, potential financial penalties, and legal actions for perceived violations of the NSL or the SNS Ordinance; and businesses operating in Hong Kong may face conflicting jurisdictional requirements and liability in connection with sanctions compliance efforts. Finally, the Advisory states that failure to adhere to US sanctions can result in civil and criminal penalties under US law.

Hong Kong Watch welcomes the US’ updated Business Advisory. Since our foundation in 2017, we have been warning foreign businesses of the increased risks of doing business in Hong Kong. This was highlighted in our 2019 report A Broken Firewall: The Extradition Law and the Rule of Law in Hong Kong, our 2020 report Why Hong Kong matters: Understanding the importance of the city to China and the world, our 2021 report Red Capital in Hong Kong: The Invisible Hand transforming the city’s politics’ and our 2024 in-depth analysis of the business and legal risks associated with Hong Kong’s ‘Article 23’ Safeguarding National Security Ordinance.

Hong Kong Watch continues to focus our research and advocacy on the business risks posed by Hong Kong’s changing political environment, new national security laws, and the link to human rights violations in the city. 

Anouk Wear, Hong Kong Watch’s US Research and Policy Advisor said:

“We welcome this updated US Business Advisory which rightly highlights the new and increased risks of operating in Hong Kong. We urge American businesses and citizens in Hong Kong to take this seriously and reconsider the risks of remaining in the city, in addition to the decreasing rights and freedoms on the ground. 

We urge the US to continue its close monitoring of the situation in Hong Kong, and continue advising Americans accordingly. We also urge the US to sanction Hong Kong government officials responsible for the human rights violations in Hong Kong, including for introducing the national security laws which also pose these increased business risks.”