U.S. Halts Some Hong Kong Trade Benefits Over China Law

06/30/2020

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Jenny Leonard | Bloomberg

The Trump administration made it harder to export sensitive American technology to Hong Kong, escalating pressure on China as lawmakers in Beijing prepared to hand down a national security law that limits the former British colony’s autonomy.

The U.S. Commerce Secretary Wilbur Ross said in a statement Monday that the security legislation, which China’s top legislative body approved Tuesday, raised concerns about the transfer of key technology. The Commerce Department said it was suspending regulations allowing special treatment to Hong Kong over things including export license exceptions.

“With the Chinese Communist Party’s imposition of new security measures on Hong Kong, the risk that sensitive U.S. technology will be diverted to the People’s Liberation Army or Ministry of State Security has increased, all while undermining the territory’s autonomy,” Ross said, providing little detail on specific impacts. “Further actions to eliminate differential treatment are also being evaluated.”

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