The Big Ideas

by Malcolm Riddell

Financial Times

Financial Times

Financial Times

'US warns companies of risk of doing business in Hong Kong'
'US warns companies of risk of doing business in Hong Kong'
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July 18, 2021
BIG IDEA | ‘It is the first time a US administration has issued a business advisory in relation to Hong Kong.’
“In the face of Beijing’s decisions over the past year that have stifled the democratic aspirations of people in Hong Kong, we are taking action,” said Antony Blinken, US secretary of state. “Today we send a clear message that the US resolutely stands with Hong Kongers.”  

‘The Biden administration on Friday warned US companies that they faced serious and escalating risks operating in Hong Kong, as the Chinese government increasingly cracks down on freedoms in the financial hub.’

  • ‘The US issued a “business advisory” about threats ranging from China’s ability to gain access to data stored on servers in Hong Kong to a new Chinese law that allows sanctions to be imposed on anyone who helps foreign nations enforce sanctions against Chinese companies and officials.’
  • ‘ “This new legal landscape . . . could adversely affect businesses and individuals operating in Hong Kong,” the advisory said. “They should be aware of potential reputational, regulatory, financial, and in certain cases legal risks associated with their Hong Kong operations.” ’

‘It is the first time a US administration has issued a business advisory in relation to Hong Kong.’

  • ‘ “In the face of Beijing’s decisions over the past year that have stifled the democratic aspirations of people in Hong Kong, we are taking action,” said Antony Blinken, US secretary of state. “Today we send a clear message that the US resolutely stands with Hong Kongers.” ’

‘Joe Biden also imposed sanctions on seven senior Chinese officials who serve in Beijing’s representative office in Hong Kong.’

‘The Hong Kong government said the advisory was a malicious attempt to damage the city’s reputation as a business hub.’

  • ‘ “Any attempt to intervene in Hong Kong affairs and contain China’s development is doomed to fail,” China’s representative office in Hong Kong added. “Chinese people will deal a head-on blow to the reckless behaviour of the US.” ’

‘Kurt Tong, a China expert at the Asia Group who was US consul-general in Hong Kong until 2019, said the move was a “mixture of denunciatory political rhetoric aimed at China” and consular advice to businesses.’

  • ‘ “Non-Chinese firms in Hong Kong will make their own decisions, after balancing the city’s unique business opportunities with their best estimates of the increased legal and operational and reputational risks,” he said. “For now, it appears that most foreign investors see the benefits of Hong Kong as outweighing the risks.” ’
  • ‘Tong said the top worry for many foreign firms in Hong Kong centred on whether the judiciary would remain independent.’

Bloomberg

CHINADebate

The Big Ideas

'China Plans to Exempt H.K. IPOs From Cybersecurity Reviews'

‘China plans to exempt companies going public in Hong Kong from first seeking the approval of the country’s cybersecurity regulator, removing one hurdle for businesses that list in the Asian financial hub instead of the U.S.’
7/18/2021

The Wall Street Journal

CHINADebate

The Big Ideas

The Editorial Board | The Wall Street Journal

'Biden’s Warning on Hong Kong'

‘The pretense of Chinese and Hong Kong authorities is that their crackdown on the rule of law and dissent will have no effect on Hong Kong’s viability as an international center for trade and finance.’
The Editorial Board | The Wall Street Journal
7/18/2021

CHINADebate

CHINADebate

The Big Ideas

Why the U.S. Lacks Leverage over China

During the celebration of the Chinese Communist Party’s Centennial celebration, Mr. Xi stood in the same place on the balcony facing Tiananmen Square where Mao Zedong stood when he announced the founding of the PRC; Mr. Xi wore a gray Mao suit, among a sea of blue western suits; and he centered himself right above the portrait of Mao, who is similarly attired.
Malcolm Riddell
Founder of CHINADebate
7/18/2021

Foreign Affairs

CHINADebate

The Big Ideas

Kurt Tong | Asia Group

Hong Kong and the Limits of Decoupling

‘The United States’ inability to make China regret—much less reverse—its transgressions in Hong Kong suggests that financial separation, sanctions, and economic barriers are less reliable tools than many in Washington believe.’
Kurt Tong | Asia Group
7/18/2021

Nikkei Asia

CHINADebate

The Big Ideas

'I will aim for Mao's Status.'

‘There on the gate was Xi Jinping, Chinese president and party general secretary, in a gray Mao suit. Just below his feet was the portrait of Mao Zedong, also dressed in a gray Mao suit.’
7/18/2021

CHINADebate

CHINADebate

The Big Ideas

The Chinese Point of View

Here are a few of my thoughts on the importance of Wang Jisi’s ‘The Plot Against China.’ Yuen Yuen Ang’s ‘The Evolution of Chinese Corruption’ speaks for itself - but note especially how Mr. Xi's anti-corruption campaign could hurt China's economy. I have now lived long enough that when a friend complains about his or her spouse, I say to myself, ‘There are no doubt two sides to this story.’
Malcolm Riddell
Founder of CHINADebate
7/4/2021

Foreign Affairs

CHINADebate

The Big Ideas

Wang Jisi | President of the Institute of International and Strategic Studies at Peking University

'How Beijing Sees U.S.-China Relations'

‘In Chinese eyes, the most significant threat to China’s sovereignty and national security has long been U.S. interference in its internal affairs aimed at changing the country’s political system and undermining the CCP.’
Wang Jisi | President of the Institute of International and Strategic Studies at Peking University
7/4/2021

Foreign Affairs

CHINADebate

The Big Ideas

Yuen Yuen Ang | University of Michigan

'How Corruption Powers China's Economy'

‘China has managed to sustain four decades of economic growth despite levels of corruption that even Xi has described as “grave” and “shocking.” Why does it seem to have bucked the trend?’
Yuen Yuen Ang | University of Michigan
7/4/2021
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