The US Administration has taken a series of actions in recent days to tighten US export controls for Hong Kong and to sanction Chinese government officials in response to the decision of the Chinese Communist Party (CCP) to impose a new national security law for Hong Kong. Most significantly, these actions put Hong Kong on a par with China with respect to license exception eligibility under the US Export Administration Regulations (EAR) by suspending all EAR license exceptions for Hong Kong to the extent different from those available for China. This will increase the need to obtain individual licenses for controlled dual-use exports/reexports to and transfers within Hong Kong. In addition, all defense exports to Hong Kong are being halted on the basis that the US Government “can no longer distinguish between the export of controlled items to Hong Kong or to mainland China.” Finally, visa restrictions will be imposed on certain Chinese government officials determined to be undermining Hong Kong’s autonomy and human rights. These changes mark the most significant step yet in the revocation of Hong Kong’s preferential status under US law.

To read the rest of this article by Alison J. Stafford Powell, Jon Cowley and Eunkyung Kim Shin, which discusses Hong Kong’s status under US law, the new HK National Security Law, US Government’s latest actions and potential impact, Hong Kong Strategic Commodities Regulations Circular and what to expect next, please see our Sanctions Blog here.

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Ms Stafford Powell advises on all aspects of outbound trade compliance, including compliance planning, risk assessments, licensing, regulatory interpretations, voluntary disclosures, enforcement actions, internal investigations and audits, mergers and acquisitions and other cross-border activities. She develops compliance training, codes of conduct, compliance procedures and policies. She has particular experience in the financial services, technology/IT services, travel/hospitality, telecommunications, and manufacturing sectors.

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