US President Joe Biden on Thursday confirmed reports in various media outlets this week that his administration plans to soon issue an advisory to companies that will caution them of a"deteriorating" situation in the Chinese territory.
This won't be the first time that Washington is urging caution about Hong Kong, which has undergone significant change since pro-democracy, anti-government protests roiled the city in 2019. China cracked down on Hong Kong last year by implementing a sweeping national security law that signaled Beijing is taking ever tighter control. The law raised questions about the city's future as an international business center.
Biden's business advisory"probably won't pack an immediate punch," according to Brock Silvers, chief investment officer for Hong Kong-based Adamas Asset Management. He added that"few US companies currently operating in Hong Kong will be surprised at its content or otherwise unaware of Hong Kong's growing risks."
Apparel and footwear company VF Corp announced in January that it would move Asia operations out of Hong Kong, relocating its supply hub to Singapore and establishing other services in Malaysia. It moved brand operations to Shanghai. The New York Times, meanwhile, moved its digital news operation for Asia from Hong Kong to Seoul.
"It's not just the closure of Apple Daily," AmCham Hong Kong President Tara Joseph told CNN Business at the time."It's the new normal, and the change that Hong Kong is going through from its era as a post-British colony to an era where it is, more and more, part and parcel of China."