The U.S. Government issued an advisory urging companies to increase their due diligence when doing business in Hong Kong. Due to Chinese governmental policies that “undermine the legal and regulatory environment that is critical for individuals and businesses to operate freely and with legal certainty in Hong Kong” are impacting U.S. parties. There are various risks associated with doing business with Hong Kong. A few of the key risks include:
- Foreign Nationals, including one U.S. citizen, being arrested under the National Security Law (NSL)
- Electronic surveillance without warrants and the surrender of data to authorities
- Restricted access to information if reliant on free and open press
- The People’s Republic of China (PRC) retaliation against companies that comply with sanctions imposed by the U.S. and other countries
U.S. businesses, individuals, and academic institutions should familiarize themselves with these risks related to Hong Kong and China, especially companies with Hong Kong operations.