On July 14, 2020, President Trump signed into law an Executive Order that ends Hong Kong’s differential treatment compared to the People’s Republic of China (“PRC” or “China”). The President’s action follows the Chinese government’s decision in late May to impose new national security legislation on Hong Kong that outlaws any act of “secession,” “terrorism,” or “collusion” with a foreign power.  The United States government objects to this legislation and believes that it has compromised Hong Kong’s autonomous status, which justified  Hong Kong’s differential treatment from China for a number of purposes. As President Trump stated following the signing of the Executive Order, “Hong Kong will now be treated the same as mainland China…no special privileges, no special economic treatments and no export of sensitive technologies.”

As a result of the Executive Order, any imported Hong Kong origin goods will now be considered Chinese origin and will be subject to any antidumping or countervailing duty orders applicable to China.  The Executive Order also eliminates any passport preferences for persons from Hong Kong as opposed to those from the PRC and revokes any Export Administration Regulation (“EAR”) license exceptions for exports, re-exports, and in-country transfers pertaining to Hong Kong. The order also authorizes steps to end other forms of U.S.-Hong Kong cooperation unrelated to international trade, such as the Fulbright exchange program.

Husch Blackwell is very active in China trade matters and continues to monitor the developing Hong Kong situation and U.S.-China trade. If you have any questions or concerns regarding the recent Presidential action related to Hong Kong, please contact Robert Stang, Jeffrey Neeley or other members of Husch Blackwell’s International Trade and Supply Chain team.