Biden to warn US companies of risks of operating in Hong Kong

The report said that US companies face threats including the Chinese government's ability to gain access to data that foreign companies store in Hong Kong.
The report said that US companies face threats including the Chinese government's ability to gain access to data that foreign companies store in Hong Kong.PHOTO: AFP

HONG KONG (REUTERS) - The United States government will this week warn companies of increasing risks of operating in Hong Kong and also update a previously issued warning on Xinjiang, the Financial Times reported on Tuesday (July 13).

The report said that US companies face threats including the Chinese government's ability to gain access to data that foreign companies store in Hong Kong.

The risks also included the new law that allows Beijing to impose sanctions against individuals or entities involved in making or implementing discriminatory measures against Chinese citizens or entities, the Financial Times said, citing three people familiar with the matter.

On Tuesday, the US will update a warning that former President Donald Trump's administration issued on Xinjiang last year, Financial Times said, adding that it will stress on the legal risks that companies face unless they ensure that their supply chains are not implicated in alleged forced labour in Xinjiang.

The Financial Times report also said that the US will impose more sanctions this week in response to China's crackdown on pro-democracy protests in Hong Kong and alleged human rights abuses in Xinjiang.

China dismisses accusations of genocide and forced labour in Xinjiang and says its policies are necessary to stamp out separatists and religious extremists who plotted attacks and stirred up tension between mostly Muslim ethnic Uighurs and Han, China's largest ethnic group.

In response to the report, China said on Tuesday it opposed the United States interfering in its internal affairs.

Hong Kong basic law and relevant laws clearly protect the interests of foreign investors, foreign ministry spokesman Zhao Lijian told a regular briefing.