Economics
Global Banks Risk Breaching China Law by Complying With U.S.
- Hong Kong security law seen clashing with U.S. sanctions bill
- Tensions rise as global banks expand in Chinese markets
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Global banks risk being caught between Beijing-backed penalties and sanctions being debated in the U.S. as Hong Kong’s autonomy becomes a volatile point of friction between the two superpowers.
The vast scope of the new security law imposed on the city has taken businesses by surprise, but perhaps no part is more worrying for global lenders than Article 29. It forbids sanctions, blockades or hostile activities against the financial hub and China at a time when the U.S. is inching closer to enacting rules that would require banks to comply with sanctions against Chinese officials and entities. Running afoul of the legislations put companies at risk of fines or losing their license to do business.