The Trump administration’s new restrictions come in response to a new national security law that will extend China’s influence over Hong Kong.
WASHINGTON — The Trump administration placed new restrictions on U.S. exports of defense equipment and certain high-technology products to Hong Kong on Monday, in response to a new Chinese law aimed at tightening Beijing’s control over the territory.
The administration determined in late May that Hong Kong no longer had significant autonomy under Chinese rule, and promised to begin stripping away Hong Kong’s privileged status with the United States if Beijing continued to crack down on civil liberties in Hong Kong.
Chinese lawmakers are poised to approve a national security law as soon as this week that could drastically curb protests and other criticisms of the Chinese government, infringing on an arrangement that has made Hong Kong, which China ceded to Britain in 1842 and which ceased being a British colony in 1997, autonomous in many respects.
In separate statements on Monday, the State Department said that it would end exports of U.S. military equipment to Hong Kong, while the Commerce Department said that Hong Kong would now be subject to the same types of controls on certain technology exports that apply to China. Those controls block American companies from selling certain types of sensitive, high-technology products that could threaten national security to China, Russia and other countries deemed to be a security risk.
The effect of the new restrictions announced Monday appears to be relatively limited in scope, given the small volume of trade the United States does with Hong Kong. Hong Kong represented just 2.2 percent of American exports in 2018, with defense and high-technology items making up a sliver of that.
But the export limitations announced Monday could have larger implications for some multinational companies, including some semiconductor firms, who now will be barred from sending products or sharing certain high-tech information with the territory. Some multinational companies that chose Hong Kong as a base for doing business with China have begun considering moves to other locations, including Singapore.