National security law: US export controls will ‘hammer Hong Kong re-exports’ and tighten the screw on China
- Experts warn US restrictions on sensitive technology to Hong Kong over national security law could ‘hammer the city’s re-export business’
- Move comes as export controls on Chinese firms are tightened by the US, further freezing the nation’s access to American hi-tech goods
Washington’s move to restrict Hong Kong’s access to “sensitive US technology” is seen as the first in a potentially long line of steps towards removing the city’s special trading privileges, and a further tightening of the screw on China’s access to hi-tech goods.
The plan, announced by US Commerce Secretary Wilbur Ross just hours before Beijing passed a national security law for Hong Kong on Tuesday, could see the city relegated from the same group of export license exceptions as Australia, Britain and Taiwan to a category that includes Russia, Syria and Venezuela, should it face the same restrictions as China.
Ross said that “the risk that sensitive US technology will be diverted to the People’s Liberation Army or Ministry of State Security has increased, all while undermining the territory’s autonomy”.
His statement came on the same day that US authorities eliminated licensing exceptions for civil usage of “national security-controlled items” to “countries of national security concern”, including China.
It is not necessarily the tightening of controls on defence or military equipment that is at issue, it’s the sensitive technology that is exported to and through Hong Kong from where the impact will be felt
Removing Hong Kong’s export licensing privileges could see the city’s re-exports to China designated in the same manner.