hong kong's role in global illicit finance under scrutiny
Hong Kong has become a hub for money laundering and sanction evasion, warn American congressmen. This assertion comes from a letter addressed to the Treasury Department, as reported by CNN on Tuesday. The document's authors urge greater caution in dealings with Hong Kong. "The city has shifted from an independent global financial capital to a key member of the alliance between China, Iran, Russia, and North Korea," the congressmen caution.
1:04 PM EST, November 26, 2024
Members of a special House committee investigating U.S. competitiveness against China have called on Washington authorities to tighten control over Hong Kong's financial sector. This call is driven by various crimes that, according to the congressmen, are tolerated by Beijing.
In their letter to U.S. Treasury Secretary Janet Yellen, both Democrats and Republicans on the committee highlighted that Hong Kong is emerging as a global center for illegal practices, including the export of Western technology to Russia, trade with North Korea using a shadow fleet, and registering companies as fronts for trading Iranian oil.
American congressmen have pointed out that since 2020, when Beijing enacted national security regulations in Hong Kong, the city has shifted from an independent global financial capital to a key member of the alliance between China, Iran, Russia, and North Korea.
We need to consider whether the longstanding U.S. policy toward Hong Kong is justified, especially the close ties in the financial sector, the committee members wrote.
The congressmen cited a study from last year showing that between August and December 2023, almost 40 percent of shipments from Hong Kong to Russia included support for the Russian military industry.
CNN reminded viewers that U.S. President-elect Donald Trump, at the end of his first term, urged caution in relations with Hong Kong. It is expected that his administration will take steps to limit the connections between the American financial sector and Hong Kong, the broadcaster emphasized.
Beijing strikes civil liberties
Hong Kong remained under British lease until July 1, 1997. When the territory was handed over, the People's Republic of China pledged that Hong Kong would maintain autonomy and freedoms, as well as an independent judiciary, for at least 50 years.
Since 2010, Beijing has been systematically restricting civil liberties in Hong Kong, tightening control over the city markedly in 2020. During this time, Chinese authorities almost completely dismantled the opposition, crushed democratic movements, and detained or forced into exile most influential activists and hundreds of citizens fearing persecution.
