In its statement, the liaison office vowed China would deal a “head-on blow” to Washington. The fiery language was echoed in separate statements from the Chinese foreign ministry’s office in Hong Kong and the Hong Kong and Macau Affairs Office under the State Council.

Three official media outlets directly under the central government – Xinhua, People’s Daily and China Central Television – all published strongly worded editorials on Saturday, attacking the American sanctions. They slammed Washington for blatantly interfering in China’s domestic affairs and dismissed the sanctions as “paper tiger.”

China threatens ‘head-on blow’ to US after latest Hong Kong sanctions

Analysts said the combative tone meant Beijing would retaliate against the US. They expect bilateral relations to further deteriorate.

In Hong Kong, Lam described the statement by US Secretary of State Antony Blinken on Friday as an “utter trampling on the rule of law which is a commonly held core value and once again, double standards of the US administration”.

Lam added: “We cannot allow such misguided remarks to go unchallenged.”

She urged the US authorities to view Hong Kong matters in an honest and fair manner instead of “intimidating US businesses and individuals” with the advisory.

American diplomats in Hong Kong on Saturday said the advisory was not a warning but a “factual account” of the escalating risks posed by the national security law. They said Washington was only trying to help companies to make informed decisions, and warned more actions could follow if Beijing continued to undermine Hong Kong’s autonomy.

They also said a fresh round of sanctions targeting seven Chinese officials was intended to “pose costs for actions” that threatened the city’s freedoms. The officials targeted are seven deputy directors of the liaison office: Chen Dong, He Jing, Lu Xinning, Qiu Hong, Tan Tieniu, Tang Jianping and Yin Zonghua.

The office’s director, Luo Huining, was sanctioned last August, while 24 other officials and politicians from Hong Kong and the mainland were listed in March over what Washington described as efforts to undermine Hong Kong’s autonomy, including a radical overhaul of the city’s electoral system.

John Lee, who was also sanctioned by the US before becoming chief secretary, said the American accusations were typical examples of “double standards” and reassured that businesses in Hong Kong had been well protected by local laws.

US sanctions 7 Hong Kong liaison office officials

“It only reinforces our beliefs that all these political acts are nothing but acts of hegemonic regime to pursue [stories] which are untrue so as to attack the development of China and Hong Kong,” he told the Post after attending its Student of the Year Awards ceremony.

“The more protection they get from the law, that means the less risks they will be facing from people who will be doing bad things to them.”

The joint advisory issued by four US government agencies – the treasury, state, commerce and homeland security departments – on Friday highlighted the risks for firms following the imposition of the security law, including data privacy, transparency and access to critical business information.

It also warned of the risks for businesses with exposure to sanctioned entities.

In a phone interview with the Post and selected media outlets on Saturday morning, two US officials who spoke on condition of anonymity dismissed the notion that they were suggesting American companies retreat from the city.

When asked about the purpose of the joint advisory, which some American investors have labelled “unproductive”, rather, they said, it was giving them a “fact-based, straightforward assessment” of the risks they faced under the sweeping security legislation and other local laws.

“It’s not a warning. It’s not a guideline,” one said.

“You can’t have it both ways. Imposing a mainland-style system is not compatible with Hong Kong’s level of development. We want US businesses in Hong Kong to benefit from the fair, transparent and rule of law-based treatment.”

Beijing official says Hong Kong leaders must have strategic vision, warns West

The pair also said the fresh round of sanctions against seven officials was intended to “pose costs for actions” that undermined Hong Kong’s autonomy, warning more could be in store if Beijing continued to do so.

“We did it in the previous administration. We are doing it again in this administration,” one said. “Our goal is obviously to get Beijing to stop doing the things we believed have violated the promises it made.”

Song Sio-chong, a professor at Shenzhen University’s Centre for the Basic Laws of Hong Kong and Macau, said Beijing was prepared for a total “face-off” with Western countries over the city.

“Hong Kong is now one of the major issues in Sino-US relations where Beijing will not back down,” Song said. “It is still in the escalation stage, we will continue to see Washington and Beijing engaging in such sanctions and counter-sanctions.”

Song said the sanctions against the seven would have “little effect” since these officials had already been screened for their potential links and exposure to the US and other Western countries before being posted to Hong Kong. But Beijing may have to do more to “win over” the hearts of Hong Kong civil servants, since some may worry about being targeted with US sanctions in the future.

Veteran China watcher Johnny Lau Yui-siu said he believed the US officials’ anonymous remarks to the press were to leverage business interests in Hong Kong’s American community, as companies had long enjoyed strong economic benefits in the financial hub despite the changing political landscape.

He added the strong rebuttal from mainland and Hong Kong officials was a calculated move in the propaganda war between the US and China.

“Beijing’s shame and blame tactics towards Washington are direct. But a side effect is that they might scare foreign nationals and Hongkongers, making them tend to believe rhetoric by foreign politicians,” he said.