WASHINGTON – The Trump administration re-restricted US exports of defense equipment and certain high-tech products to Hong Kong on Monday in response to a new Chinese law that aims to do so Beijing’s control tightened over the area.
The government found in late May that Hong Kong had no significant autonomy under Chinese rule and promised start taking your clothes off Hong Kong’s privileged status vis-à-vis the United States if Beijing continues to act against civil liberties in Hong Kong.
Chinese lawmakers are ready to pass a national security law As early as this week, this could drastically curb protests and other criticisms of the Chinese government and violate an agreement that made Hong Kong, which ceded China to Britain in 1842 and no longer a British colony in 1997, autonomous in many ways.
In separate statements on Monday, the State Department said it would end the export of US military equipment to Hong Kong, while the Department of Commerce said that Hong Kong would now be subject to the same controls on certain technology exports that apply to China. These controls prevent American companies from selling certain types of sensitive, high-tech products that could threaten national security to China, Russia, and other countries that are classified as security risks.
The impact of the new restrictions announced on Monday appears to be relatively limited given the United States’ small trade with Hong Kong. Hong Kong only made up 2.2 percent of American exports in 2018, with defense and high-tech products accounting for a fraction of it.
However, the export restrictions announced on Monday could have a greater impact on some multinational companies, including some semiconductor companies that are now prohibited from shipping products or sharing certain high-tech information with the area. Some multinational companies that have chosen Hong Kong as the basis for doing business with China have fled to other locations, including Singapore.
The Trump administration said it would An extradition contract with Hong Kong is terminated and some other commercial relationships are restricted as a result of the new Chinese security law. It said it would Identify thousands of Chinese doctoral students and researchers linked to the Chinese military and threatened to sanction Chinese government officials and financial institutions involved in promulgating the security law.
However, the Trump administration has not imposed broader financial sanctions that could paralyze Chinese companies and US-China economic relations, including President Trump’s Phase 1 trade agreement.
In a statement, Secretary of Commerce Wilbur Ross said that China’s new security law is undermining the territory’s autonomy and increasing the risk of sensitive American technology being diverted to China’s military or security forces.
Mr. Ross said that further measures to address the different treatment in Hong Kong would “also be evaluated”.
“We urge Beijing to immediately reverse the course and deliver on the promises that people in Hong Kong and the world have made,” he added.
“We are not pleased to take these measures,” said Mike Pompeo, the Secretary of State, in a separate statement. “But given that Beijing now treats Hong Kong as” one country, one system, “we have to.”