hong kong's shift from financial hub to sanctions gateway
Hong Kong has become a hub for money laundering and sanction evasion, American congressmen have warned—a letter regarding this issue was quoted by CNN on Tuesday. The authors of the document call for greater caution in relations with Hong Kong. "The city has shifted from an independent global financial capital to a key member of the alliance between China, Iran, Russia, and North Korea," warn the congressmen.
26 November 2024 15:58
Members of a special House committee studying U.S. competitiveness against China called on Washington authorities to tighten control over Hong Kong's financial sector. The call is driven by various crimes that, as emphasised by the congressmen, are tolerated by Beijing.
In the letter to the U.S. Treasury Secretary Janet Yellen, both Democrats and Republicans on the committee highlighted that Hong Kong is emerging as a global centre for illegal practices, such as the export of Western technology to Russia, trade with North Korea using a shadow fleet, or registering companies as fronts for trading Iranian oil.
American congressmen pointed out that since 2020, when Beijing enacted national security regulations in Hong Kong, the city has shifted from an independent global financial capital to a key member of the alliance between China, Iran, Russia, and North Korea.
We need to consider whether the longstanding U.S. policy towards Hong Kong is justified, especially the close ties in the financial sector, wrote members of the Committee.
The congressmen cited a study from last year, which shows that between August and December 2023, nearly 40 per cent of shipments from Hong Kong to Russia included support for the Russian military industry.
CNN reminded that U.S. President-elect Donald Trump at the end of his first term urged caution in relations with Hong Kong. It is expected that his administration will take steps to limit the connections of the American financial sector with Hong Kong, emphasised the American broadcaster.
Beijing strikes civil liberties
Hong Kong remained under British lease until 1 July 1997. When the territory was handed over, the People's Republic of China pledged that Hong Kong would maintain autonomy and freedoms, as well as an independent judiciary, for at least 50 years.
Since 2010, Beijing has been systematically restricting civil liberties in Hong Kong and tightened control over the city, particularly in 2020. During that time, the Chinese authorities almost completely dismantled the opposition, crushed democratic movements, and most influential activists and hundreds of citizens were detained or fled fearing persecution.
