Summary -

In response to Beijing’s moves to impose a controversial national security law on Hong Kong, President Trump announced on May 27th a limited visa ban on Chinese students and possible future steps that could include sanctions on Chinese officials and financial institutions. The announcement followed Secretary of State Michael Pompeo’s certification to Congress that Hong Kong was no longer sufficiently autonomous from China to enjoy special status under U.S. law. The extent to which these policy changes will impact Hong Kong’s future as a global financial hub remains to be seen, but companies should monitor developments closely as they could reset economic and trade relations in the region.