Of particular significance to multinational organizations operating in Hong Kong, including financial institutions, are reports suggesting that the National People’s Congress (NPC) Standing Committee did not vote to extend the reach of China’s Anti-Foreign Sanctions Law to Hong Kong.
The Anti-Foreign Sanctions Law, which came into effect in June 2021, forms part of a suite of Chinese countermeasures to foreign sanctions. The law authorizes government and nongovernment entities in China to take actions under certain circumstances against individuals and organizations that comply with foreign sanctions.
It is understood that further discussion and deliberation are set to take place on how this “toolkit” might be adapted for application in Hong Kong. We await further detail regarding the NPC’s timeline to move the legislation forward. In the meantime, please reach out to Morgan Lewis’s US-China trading policy and global impact team with any questions.