‘A real bind:’ Banks that carry out Trump’s new sanctions could violate Hong Kong security law
Press/Media: Press / Media
|Title||‘A real bind:’ Banks that carry out Trump’s new sanctions could violate Hong Kong security law|
|Description||On Tuesday, President Donald Trump signed the Hong Kong Autonomy Act into law, passing a bill introduced in the Senate in May to rebuke Beijing’s imposition of a harsh national security law on Hong Kong. On Wednesday, China's Ministry of Foreign Affairs condemned the passage of the law and vowed to enact retaliatory sanctions against "relevant individuals and entities of the United States."|
The Hong Kong Autonomy Act will sanction individuals that the State Department determines are “involved in the erosion” of Hong Kong’s autonomy and punish banks that continue to serve them as clients. But Hong Kong's new national security law threatens to imprison people who “collude” with foreign powers, including passing sanctions like those just triggered by the U.S. The competing laws threaten to leave international banks torn between two obligations: one to Washington and the other to Beijing.
Professor Wang Jiangyu, RCCL Director, observed in a report of the Fortune magazine that simply complying with foreign sanctions should not be legally interpreted as falling under endangering China’s national security, as this would put international business in Hong Kong in a very uncertain situation. The Hong Kong Autonomy Act passed by Congress of the United States will sanction individuals who are determined by the U.S. as “involved in the erosion” of Hong Kong’s autonomy and punish banks that serve them as clients. China has vowed to enact retaliatory sanctions against U.S. individuals and entities. Wang argued that, instead of applying the national security law directly, Beijing may punish the banks that comply with sanctions via fines or other measures that would be less detrimental to Hong Kong’s overall business environment.
|Degree of recognition||International|
|Producer/Author||EAMON BARRETT AND GRADY MCGREGOR|
|Duration / Length / Size||2,000 words|