The Standing Committee of the National People's Congress held a meeting in Beijing from August 17 to 20. The agenda included consideration of a draft decision to add national laws listed in Annex III of the Basic Law of Hong Kong and Macau. The news refers to the Anti-Foreign Sanctions Law.
The Anti-Foreign Sanctions Law states that no organization or individual may implement or assist in the implementation of foreign countries’ discriminatory restrictions on Chinese citizens and organizations. If they fail to implement or cooperate with China’s countermeasures, they will also be held liable.
The society is concerned that once foreign sanctions are imposed on Chinese and Hong Kong officials, foreign banks in Hong Kong will implement foreign sanctions, such as freezing the bank accounts of persons subject to sanctions, or violate the Anti-Foreign Sanctions Act, which will lead to a dilemma.
Wu Liangxing, a representative of the Hong Kong People's Congress and a former member of the financial sector, believes that if sanctions occur, foreign banks will inevitably have conflicts or embarrassments. However, according to international practices, they must be dealt with in accordance with local laws, otherwise they must bear relevant legal liabilities.
Assist in enforcement of sanctions can be prosecuted
The Anti-Foreign Sanctions Law passed by the Standing Committee of the National People’s Congress in June of this year has 16 articles. Article 12 stipulates that no organization or individual may implement or assist in the implementation. Discriminatory restrictive measures taken by foreign countries against Chinese citizens and organizations. Otherwise, a lawsuit may be filed to stop the infringement and compensate for the loss.
If any organization or individual fails to implement or cooperate with countermeasures, they shall be held accountable in accordance with the law.
Since August 2020, the United States has imposed sanctions against Chinese and Hong Kong officials five times over the Hong Kong issue, including Chief Executive Carrie Lam, Secretary of Justice Zheng Ruohua, and Secretary for Security Deng Pingqiang.
The bank of a sanctioned person has been suspended. Chief Executive Carrie Lam Cheng Yuet-ngor once disclosed that the government now pays her in cash because the sanctions have to stop the user account. Many sanctioned officials have also been found to have paid off their mortgages.
Wu Liangxing: Foreign banks with branches in Hong Kong will be punished if they violate local laws
Wu Liangxing, chairman of Bank of China (Hong Kong) Trust Co., Ltd., said that the situation of foreign banks in Hong Kong is inevitably embarrassing. The headquarters in other places may not accept or agree to Chinese sanctions. However, as long as there are branches in Hong Kong, the branches need to be dealt with in accordance with local laws. In Hong Kong, for example, all banks are regulated by the Monetary Authority and need to act in accordance with the law. If they violate local laws, they need to be punished.
Chen Zhenying, a member of the Legislative Council of the financial sector, said that since the news was only learned yesterday, it is not yet known how the HKMA and the industry reacted.
▼List of many Chinese and Hong Kong officials sanctioned by the United States▼
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Liu Zhaojia: When it comes to national sovereignty, China will not consider whether the company is under pressure
Liu Zhaojia, vice chairman of the National Hong Kong and Macau Research Association, said that the past US sanctions were not effective in Hong Kong, but the institutions involved would also obey the sanctions for fear of being removed from the US dollar system.
He pointed out that China cannot tolerate the United States' wanton sanctions on Chinese and Hong Kong officials, and will no longer "submit it." Therefore, it enacted the Anti-Foreign Sanctions Act to prevent the United States from imposing sanctions on Chinese and Hong Kong officials.
He said frankly that the inclusion of the Anti-Foreign Sanctions Law in Annex III of the Basic Law will make it "difficult" and pressure on foreign banks and other institutions in Hong Kong. However, foreign sanctions on Chinese and Hong Kong officials undermine national sovereignty. The central government cannot tolerate the use of sanctions by foreign countries. Manipulating Chinese and Hong Kong officials will not consider whether companies are under pressure.
He believes that the Central Government’s Anti-Foreign Sanctions Law enacted the expectation that foreign companies in Hong Kong will try their best to lobby their country not to sanction Hong Kong, lest the Chinese counterattack and pressure foreign companies in Hong Kong.
Liu Zhaojia.
(Profile picture)
It is expected to be directly promulgated by the central government for implementation in Hong Kong
According to the Basic Law, the national laws included in Annex III can be directly promulgated by the Central Government or implemented by local legislation in Hong Kong.
Liu Zhaojia predicts that the "Anti-Foreign Sanctions Law" will be directly promulgated by the central government, without local legislation in Hong Kong, because the law itself is more principled, and the specific operation of the law will be determined by the central government depending on the other party's "recruitment". It should be decided by individual means, and it is not listed. There are clear penalties and it is difficult to carry out local legislation.
He continued that the central government’s direct promulgation of the law gives the central government a high degree of flexibility to deal with issues involving national sovereignty, even if it causes worries, there is "no way."
Next month, the Standing Committee of the National People's Congress added to the Basic Law Annex III National Legal News: Involving Anti-Foreign Sanctions Law and Anti-Foreign Sanctions Law｜Beijing Officials Advocate Adopting the Basic Law Annex III Tan Yaozong said that the Standing Committee of the National People's Congress has not decided on the anti-foreign sanctions law : The Central Authorities have the right to cancel the visa Anti-Foreign Sanctions Law | Shimoke: Create a coercive atmosphere threatens Hong Kong’s status as an international business center. The full text of the Anti-Foreign Sanctions Law is released. Citizens and organizations can sue for discriminatory restrictions
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