China’s anti-sanctions law will be implemented in some form in Hong Kong, the city’s leader confirmed, a move that will add regulatory pressure on international companies afresh, in the finance hub.
Beijing legislature passed the law in June in response to Western penalties that were imposed following crackdowns in Hong Kong and Xinjiang.
Its powers include denying visas, deportation, or seizing assets of those who formulate or comply with sanctions against Chinese businesses or officials.
Foreign companies can be sued in Chinese courts for applying sanctions and the law can also be wielded against family members.
Hong Kong’s Chief Executive Carrie Lam confirmed Beijing had consulted her on adding the law to the city’s mini-Constitution, known as the Basic Law.
“The purpose of the Anti-Sanctions Law is to defend our country’s sovereignty, security and development interests,” she told reporters.
But she said Beijing could also impose the measures directly like it did with a national security law last year that snuffed out dissent.
A bank that refuses to implement U.S. sanctions, for example, could find itself cut off from access to the dollar. But those that adhere could find themselves in dire straits in Beijing.