: How U.S. Sanctions on Hong Kong Could Leave Banks Caught in the Middle #WorldNEWS In the latest round of punitive measures that the U. S. government has imposed on Hong Kong, the Trump Administration

How U.S. Sanctions on Hong Kong Could Leave Banks Caught in the Middle #WorldNEWS
In the latest round of punitive measures that the U. S. government has imposed on Hong Kong, the Trump Administration announced on Aug. 7 that it would sanction 11 high-ranking Hong Kong officials, including the citys leader Chief Executive Carrie Lam.
The sanctions are not just a Hong Kong issue—they have implications for every bank operating in the financial hub, experts say. According to official figures, 78 of the worlds top 100 banks have a presence in the territory, which has long been a gateway for international firms seeking to do business with China.
Heres what the unprecedented sanctions mean for the global financial center.

Why were the sanctions imposed?
Hong Kong is one of the worlds most important financial centers and its stock exchange is one of the worlds largest. But for much of 2019, frequently violent anti-government protests shattered the city’s reputation as a stable business hub. Protesters, activists and some pro-democracy politicians began appealing to foreign governments for aid and intervention in their struggle for greater political freedom. Some even began calling for independence—a red line for Beijing.

Perceiving a threat to national security, Beijing implemented a sweeping National Security Law in July to outlaw secession, subversion, terrorism and collusion with foreign governments. Beijing made the move after Hong Kong failed to enact national security legislation in the 23 years since 1997, when the former British possession was returned to Chinese sovereignty, but the Chinese Communist Party faced international criticism over the measure. Since its enactment, the law has been used to disqualify 12 opposition candidates (on such grounds as advocating for Hong Kong’s independence, soliciting foreign interference, and being opposed to the National Security Law itself) and arrest local media tycoon Jimmy Lai over his suspected connections to an activist group that allegedly lobbied overseas governments for sanctions.

Anthony Kwan/Getty Images Hong Kong media tycoon and Apple Daily founder Jimmy Lai (C) is escorted by the police to the Royal Hong Kong Yacht Club Shelter Cove Clubhouse for evidence collection as part of ongoing investigations in Hong Kong, China on August 11, 2020.
The law was also cited in the arrest of four students on suspicion of inciting subversion and in the banning of pro-independence protest slogans.
Earlier this summer, the U. S. revoked the semi-autonomous territorys special trading and economic status after President Donald Trump signed into law the Hong Kong Autonomy Act, which authorizes sanctions against officials and organizations responsible for undermining Hong Kongs autonomy.