Original Source: Jones Day
The Situation: On July 14, 2020, President Trump signed into law the Hong Kong Autonomy Act (the “HKAA”), the U.S. government’s response to China’s new National Security Law for Hong Kong.
The Result: The HKAA could result in a significant disruption to global transactions, including impacting global supply chains, commercial relationships, correspondent banking relationships, and credit agreements.
Looking Ahead: The ultimate effect of the HKAA largely will depend on how the U.S. government implements it, including the scope of the individuals and entities named to the relevant reports. Therefore, banks and companies active in Hong Kong, or in broader aspects of U.S.-China trade and finance, should monitor implementation of the HKAA carefully and be mindful of the new risks and prohibitions it creates.
CLICK HERE to read the full commentary regarding The Hong Kong Autonomy Act