Chinese law threatens U.S. firms doing business in Hong Kong, federal agencies warn

Four risks: The risks fall into four categories, the Departments of State, Treasury, Commerce and Homeland Security warned in the advisory. They include business risks from the law, like the risk of arrest or sanction by Chinese authorities, data privacy and surveillance risks from government, transparency issues and access to business information, and potential contact with individuals and entities sanctioned by the U.S. government.

Huge market: The potential impacts are huge. U.S. direct investment in Hong Kong totaled $82 billion in 2019, approaching the amount invested in all of mainland China, which came in at $116 billion that year.

Broad warning: The warning is the Biden administration’s latest caution for businesses operating in China. It comes just days after the four agencies, joined by the Office of the U.S. Trade Representative and the Labor Department, issued a similar advisory warning that American firms operating in the China’s…

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