House Committee Urges Treasury Department to Reassess Relationship between the US and Hong Kong
Lawmakers say that Hong Kong is now being used by Russia, North Korea, and the Chinese regime to evade international sanctions against the Russian war.
The House Select Committee on the Chinese Communist Party (CCP) has requested the U.S. Treasury Department to reevaluate the United States’ relationship with Hong Kong due to the CCP’s increased control over the city through the implementation of the 2020 update to the Hong Kong National Security Law.
Led by committee chair Rep. John Moolenaar (R-Mich.) and ranking member Rep. Raja Krishnamoorthi (D-Ill.), the lawmakers have asked for a briefing, citing evidence that Hong Kong is now being utilized to bypass international sanctions and redirect financing for the Russian war.
“Hong Kong has transitioned from a trusted global financial hub to a crucial player in the expanding authoritarian alliance of the People’s Republic of China (PRC), Iran, Russia, and North Korea,” the lawmakers wrote in a letter published on Nov. 25. “We must reconsider whether the long-standing U.S. policy towards Hong Kong, especially its financial and banking sector, is still appropriate.”
In the 1990s, Hong Kong received preferential treatment because it was seen as operating independently from mainland China, but this perception has changed, according to the lawmakers. They highlighted condemnations of CCP-directed Hong Kong policies by both current and former State Departments as evidence that the executive branch believes Hong Kong is now under CCP control.
The lawmakers also noted that Hong Kong entities have already faced sanctions for assisting in Russian war efforts.
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“The city has now emerged as a global leader in practices such as importing and re-exporting prohibited Western technology to Russia, establishing front companies for acquiring restricted Iranian oil, facilitating the trade of Russian gold, and managing ‘ghost ships’ engaging in illicit dealings with North Korea,” the letter stated.
There was no response from Hong Kong representatives to an inquiry from The Epoch Times by the time of publication.
The commission suggested that Hong Kong’s role in global trade undermines international sanctions and national security efforts, putting Western investors, financial institutions, and companies at financial and reputational risks when conducting business in Hong Kong.
Aside from the PMLC designation, the commission recommended Congress to review the connection between Hong Kong and U.S. authorities in enforcing export controls and sanctions.
A major concern is the updated National Security Law of Hong Kong and companion legislation criminalizing various forms of political assembly. Experts indicate that the law’s broad and ambiguous language equates treason and cooperation with international political organizations, effectively placing Hong Kong under the Chinese communist regime’s direct influence. The commission cautioned that these laws are applied extraterritorially, and the diminishing freedoms in Hong Kong endanger those engaging in business with the city.
Just recently, Hong Kong courts sentenced 45 pro-democracy activists to up to 10 years in prison under the updated National Security Law.
