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US Considering China Sanctions, Asset Freezes, Report Says

The U.S. is considering a variety of sanctions, asset freezes and controls on transactions for China’s planned crackdown on Hong Kong’s autonomy, according to a May 26 report from Bloomberg. The Treasury Department could target Chinese officials and companies, the report said.

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The report came one day before the State Department certified that Hong Kong is no longer autonomous from China, which could lead to U.S. sanctions and export controls (see 2005220011). President Donald Trump said the U.S. is working on a response. “We’re doing it now. We’re doing something now,” Trump said May 26. “It’s something you’re going to be hearing about over the next -- before the end of the week -- very powerfully, I think.”

The U.S.-China Business Council said it is concerned that proposed U.S. actions could limit the U.S. industry’s ability to trade and invest in Hong Kong and urged both countries’ leaders to reduce tensions. The USCBC said Hong Kong “has long been an important city” for U.S. companies operating in Asia, and said current U.S. legislation could “undermine” Hong Kong’s special economic status.

“Hong Kong's commitment to free trade and strong legal protections have helped it become an attractive investment destination and international business hub,” the council said in a May 26 statement. “USCBC urges all leaders to take those steps necessary to de-escalate tensions, promote economic recovery and the rule of law, and preserve the ‘one country, two systems’ principle.”