State Department and White House Launch Successive Attacks
Commerce Department Lists Over 30 Companies and Organizations on Blacklist
[Asia Economy New York=Correspondent Baek Jong-min] U.S. Secretary of State Mike Pompeo has strongly criticized China’s push to enact the Hong Kong National Security Law. The White House also warned of a possible exodus of capital invested in Hong Kong. The U.S. Department of Commerce’s blacklisting of more than 30 Chinese institutions and companies is also presumed to be related to the push for the Hong Kong National Security Law.
On the 22nd (local time), Secretary Pompeo stated in a press release, "Hong Kong has thrived as a bastion of freedom, and the United States strongly urges respect for Hong Kong’s high degree of autonomy, democratic institutions, and civil liberties. Any decision affecting Hong Kong’s autonomy and freedoms will impact our assessment of One Country, Two Systems and the territory’s status." He added, "We stand with the people of Hong Kong," emphasizing his point.
Kevin Hassett, Senior Economic Advisor to the White House, warned in an interview with CNN that the push for the Hong Kong National Security Law would cause an exodus of foreign capital from Hong Kong and deal a severe blow to the economies of China and Hong Kong.
Senior Advisor Hassett said, "China’s actions toward Hong Kong will be very, very bad for both the Chinese and Hong Kong economies," and added, "We are looking into possible responses, and all options are on the table." He also described the move as "a very frightening action."
Advisor Hassett predicted, "I expect a serious capital flight problem in Hong Kong," and warned that if China pushes through with this measure, "Hong Kong will no longer be the financial center of Asia. They will pay a very, very heavy price."
As a result of China’s announcement to push the Hong Kong National Security Law, the Hang Seng Index on the Hong Kong stock market plunged by 5.56% that day.
The U.S. Department of Commerce also launched an offensive against China. On the same day, the department blacklisted over 30 Chinese companies and institutions. Although the reasons cited were related to weapons of mass destruction (WMD) and human rights abuses in the Xinjiang Uygur Autonomous Region, the move is presumed to be a response to China’s plan to enact the Hong Kong National Security Law.
Among the companies added to the trade restriction list were China’s major artificial intelligence company Netposa and its facial recognition subsidiary, the robot company CloudMinds invested in by SoftBank, and China’s leading cybersecurity firm Qihoo 360.
Being included on the trade restriction list means that without U.S. government approval, these companies cannot access U.S. technology.
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