Regulatory intelligence for US exporters

US Bans Defense Exports to Hong Kong, Suspends License Exceptions

The U.S. will suspend certain export license exceptions for shipments to Hong Kong and ban exports of U.S.-origin defense goods to the region, the Trump administration said June 29. The administration also plans to further restrict sales of dual-use technologies to Hong Kong to bring those measures in line with restrictions imposed on exports to mainland China. The administration said it is imposing the restrictions because of China’s infringement in Hong Kong’s autonomy (see 2005290047).

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“We can no longer distinguish between the export of controlled items to Hong Kong or to mainland China,” the State Department said. The Commerce Department urged Beijing “to immediately reverse course and fulfill the promises it has made to the people of Hong Kong,” adding that it has suspended “regulations affording preferential treatment to Hong Kong over China.” The agencies said they are considering further measures and “actions to eliminate differential treatment.”

The U.S. previously announced visa restrictions on Chinese officials responsible for or complicit in interfering with Hong Kong’s autonomy, including those officials’ family members. China’s Foreign Ministry criticized the visa restrictions and U.S. attempts to punish China for interference in Hong Kong. China also said it will impose new visa restrictions on U.S. officials.