U.S. companies warned of risks

American businesses operating in Hong Kong should reassess their operations and decide if the risks of operating there are worth the reward, the president of the American Chamber of Commerce in Hong Kong said in an interview Monday with the Associated Press.

Tara Joseph said companies in Hong Kong are caught in the middle of antagonisms between the U.S. and China. Her remarks followed an advisory issued by the U.S. government on Friday warning businesses about risks in the former British colony.

Relations between the U.S. and China have deteriorated amid a trade war and mounting tensions over Chinese moves to curb political dissent in Hong Kong. The Biden administration cited Hong Kong’s shifting legal landscape and tightening control by the communistruled government in Beijing as growing risks.

“The business landscape has certainly become more complex than it used to be, we’re definitely in a new normal as far as business goes here,” Joseph said. “What is concerning overall, not just with this advisory, would be a constant titfortat between U.S. and China when it comes to Hong Kong ... (which) in many ways is caught right in the middle.”

The U.S. government advisory said operating in Hong Kong could lead to reputational and legal damage and data privacy risks. Hong Kong authorities denounced the warning as “unfounded fearmongering,” accusing the U.S. of hypocrisy and double standards.