The Commerce Department announced that it will no longer issue export licensing exceptions for products headed for Hong Kong.
The United States works to “eliminate the differential treatment” that it has long granted to Hong Kong.
“With the Chinese Communist Party imposing new security measures in Hong Kong, the risk that sensitive US technology will be diverted to the People’s Liberation Army or the Ministry of State Security has increased, while undermining the autonomy of the territory Wilbur Ross, Commerce Secretary, said in a statement released Monday.
Ross added that those are risks that the United States refuses to accept and have resulted in the revocation of Hong Kong’s special status.
“Commerce Department regulations granting preferential treatment to Hong Kong over China are suspended, including the availability of exceptions to the export license. Other actions to eliminate differential treatment are also being evaluated. We urge Beijing to immediately reverse course and deliver on the promises it has made to the people of Hong Kong and to the world, ”said Ross.
Exports to HK
President Donald Trump announced on May 30 that his government would begin the process of eliminating US policies that grant Hong Kong special and different treatment from the People’s Republic of China, including revocation of “Hong Kong preferential treatment as a treatment separate customs and travel territory from the rest of China. ”
Hong Kong is the 15th market for United States exports.
Also on Monday, the Hong Kong legislature passed the national security law created by China for the region.
In response to the measure on US exports, China’s foreign minister said this amounts to interfering in its affairs.
Tensions between the two countries reduce the probability that the “phase one” trade agreement will show progress in the coming months.