Multinationals in Hong Kong fear fallout from new law

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Hong Kong updates

As tensions between the US and China have ratcheted up, multinational companies in Hong Kong have struggled not to stumble on the tricky diplomatic path of keeping both powers onside.

Now foreign businesses in Hong Kong fear that task is about to get much harder.

A new law aimed at punishing western companies which comply with US sanctions is likely to be extended this year to cover business based in the Asian financial hub, according to Chinese state media. This could leave companies wedged between complying with US regulations or getting sued in Chinese courts. 

Such a move would follow other Chinese regulatory changes which have spooked global capital. Beijing’s regulatory changes to the technology and education sectors in recent weeks cut valuations of top tier Chinese companies, leaving investors nervous.

The earlier national security law,…

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