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Hong Kong Leader Says City Set to Adopt China's Anti-Sanctions Law

Agence France-Presse

   HONG KONG - China's anti-sanctions law will be implemented in some form
   in Hong Kong, the city's leader confirmed Tuesday, a move that will add
   fresh regulatory pressure on international companies in the finance
   hub.

   Beijing'srubber-stamplegislature passed the law in June in response to
   Western penalties that were imposed following crackdowns in Hong Kong
   and Xinjiang.

   Its powers include denying visas, deportation, or seizing assets of
   those who formulate orcomply withsanctions against Chinese businesses
   or officials.

   Foreign companies can be sued in Chinese courts for applying sanctions
   and the law can also be wielded against family members.

   Rumorsthat China was planning to extend the law to Hong Kong have
   swirled for days ahead of next week's meeting of the Chinese
   legislature after state media said some unidentified new measures were
   being planned for Hong Kong and Macau.

   On Tuesday, Hong Kong's chief executive,Carrie Lam,confirmed Beijing
   had consulted her on adding the law to the city'smini-constitution,
   known as the Basic Law.

   "The purpose of the Anti-Sanctions Law is to defend our country's
   sovereignty, security and development interests,"she told reporters.

   Lam said her advice had been for Hong Kong to pass its own legislation.

   But she said Beijing could also impose the measuresdirectly likeit did
   with a sweeping national security law last year that snuffed out
   dissent.

   "Some foreign forces, foreign governments andWestern media will
   definitely stir up this issue, hoping to weaken our status as a
   financialcenteror the outside world's confidence in Hong Kong,"she
   said.

   "Local legislation can allow us to better clarify the law's framework
   and procedures and fit it better to Hong Kong's legal system,"she
   added.

   Relations between China and major Western powers have deteriorated in
   recent years, squeezing companies thatoperatein both markets.

   The United States has imposed a series of sanctions on Chinese and Hong
   Kong officials, including Lam. China has responded with its own
   reciprocal measures.

   International companies face being punished by each side if they adhere
   to either sanctions regime.

   A bank that refuses to implement U.S.sanctions, for example, could find
   itself cut off from access to the dollar. But those that adhere could
   find themselves in hot water with Beijing.

   Hong Kong's new national security law makes it illegal tocomply
   withforeign sanctions. So far prosecutors have not brought any national
   security cases against international companies in Hong Kong.

   Expanding China's anti-sanctions law to Hong Kong would increase the
   suite of tools at the disposal of both prosecutors and Chinese
   companies to pursue international companiesdeemedto becomplying
   withforeign sanctions.

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