Authorities pledge to defend the interests of residents and businesses

The Ministry of Foreign Affairs and the Hong Kong Special Administrative Region government on Tuesday condemned Washington’s new restrictions on personal and corporate investments in China targeting emerging technologies like artificial intelligence. 

The authorities pledged to resolutely defend the rightful interests of residents and businesses.

The US government recently announced a ban, effective on Jan 2, restricting individuals and companies from investing in sectors such as semiconductors, quantum information technology, and artificial intelligence systems in China, including its Hong Kong and Macao SARs.

READ MORE: CE: US tech investment restrictions set to backfire

In a news conference in Beijing, Foreign Ministry spokesperson Lin Jian said China has raised objections with the US and will take all necessary measures to protect its rightful interests.

Hong Kong Chief Executive John Lee Ka-chiu, speaking prior to the weekly Executive Council meeting on Tuesday, criticized certain US politicians for disrupting free markets and trade order through politically motivated decisions.

He warned that this new move could harm global supply chains and ultimately backfire on US residents and businesses.

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He reaffirmed the SAR government’s commitment to ensuring the well-being of the city’s businesses and safeguarding national interests.

On Tuesday afternoon, a Hong Kong SAR government spokesperson warned that the US will ultimately reap the consequences, in particular regarding its long-standing substantial trade surplus with Hong Kong. The spokesperson highlighted the close economic ties between Hong Kong and the United States, underscoring the substantial commercial interests American companies hold in Hong Kong.

READ MORE: Tariffs on Chinese goods raise US inflation

Over the past decade, the US has maintained the highest global trade surplus with Hong Kong, reaching $271.5 billion. The two sides’ total trade value in 2023 amounted to HK$472.2 billion ($60.3 billion).

As of the end of 2022, the US ranked sixth in inward direct investment into Hong Kong, with an investment stock of HK$351.4 billion, and eighth in outward direct investment from Hong Kong, with HK$164.2 billion.