International Trade Today is a Warren News publication.

US to Impose Sanctions, Export Controls for China's Interference in Hong Kong, Trump Says

The U.S. will officially strip Hong Kong of its special trade treatment, which will include changes to U.S. export controls and sanctions against Chinese officials, President Donald Trump said May 29. Trump said the export controls will impact dual-use technologies and sanctions will target both Hong Kong and mainland China officials.

Sign up for a free preview to unlock the rest of this article

If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.

The measures will eliminate “policy exemptions that give Hong Kong different and special treatment,” Trump said in a statement to reporters at the White House. “My announcement today will affect the full range of agreements we have with Hong Kong, from our extradition treaty to our export controls on dual-use technologies and more, with few exceptions,” Sanctions will target officials “directly or indirectly involved in eroding Hong Kong's autonomy … and smothering Hong Kong's freedom,” he added. Trump did not provide more details on the controls or sanctions and did not answer questions.

Trump’s comments came one day after Secretary of State Mike Pompeo certified that Hong Kong no longer warranted special customs status under U.S. law (see 2005270026) after Beijing introduced a law to criminalize treason, sedition and secession in Hong Kong (see 2005220011). The Senate is expected to soon consider a bill to expand U.S. sanctions on Chinese efforts to meddle in Hong Kong (see 2005260031).

Although Trump did not specify which Chinese officials the U.S. would sanction, he said the sanctions will be powerful. “Our actions will be strong. Our actions will be meaningful,” he said, adding that the U.S. wants an “open and constructive relationship with China, but achieving that relationship requires us to vigorously defend our national interests.”

In a May 29 statement, the European Council said it is concerned about China's actions in Hong Kong and plans to discuss the issue with Chinese officials. “This decision further calls into question China’s will to uphold its international commitments,” the council said. “We will raise the issue in our continuing dialogue with China.” Australia, the United Kingdom and Canada also have expressed concern about China's interference in Hong Kong, the State Department said May 28.