{"id":2010814,"date":"2023-08-24T13:25:02","date_gmt":"2023-08-24T17:25:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-hong-kong-hit-hard-by-new-us-hi-tech-investment-ban\/"},"modified":"2023-08-24T13:31:48","modified_gmt":"2023-08-24T17:31:48","slug":"analysis-hong-kong-hit-hard-by-new-us-hi-tech-investment-ban","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-hong-kong-hit-hard-by-new-us-hi-tech-investment-ban\/","title":{"rendered":"Hong Kong severely impacted by recent US tech investment ban."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fanalysis-hong-kong-hit-hard-by-new-us-hi-tech-investment-ban%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2010814&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The United States Implements High-Tech Investment Ban Targeting China<\/h2>\n<p>In a bold move \u2064to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/is-federal-censorship-coming-biden-admin-creating-disinformation-governance-board-report\/\" title=\"Is Federal Censorship Coming? Biden Admin Creating \u2018Disinformation Governance Board\u2019: Report\">protect national security<\/a>, the United\u200d States has introduced a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-hong-kong-hit-hard-by-new-us-hi-tech-investment-ban\/\" title=\"Hong Kong severely impacted by recent US tech investment ban.\">high-tech investment ban specifically aimed<\/a> at \u200cthe Chinese Communist Party (CCP). What makes this ban unprecedented is that it includes \u2063not only mainland\u200c China but also its \u2062special administrative\u200b regions, Hong Kong and \u200bMacau. Experts are predicting that this\u200c ban \u200bwill have a significant impact on Hong Kong&#8217;s thriving \u200bhigh-tech sector.<\/p>\n<p>On <a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2023\/08\/09\/president-biden-signs-executive-order-on-addressing-united-states-investments-in-certain-national-security-technologies-and-products-in-countries-of-concern\/#:~:text=Today%2C%20President%20Joe%20Biden%20signed,in%20entities%20engaged%20in%20activities\" target=\"_blank\" rel=\"noopener\">August 9th<\/a>, President Joe Biden \u200dsigned an executive order that imposes restrictions on American\u200d companies, citizens, and\u2064 permanent\u2064 residents investing in sensitive high-end technology enterprises\u2064 in China. This ban covers domains\u2063 such as\u2063 Artificial Intelligence \u2063(AI), semiconductors and \u2062microelectronics, and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-bidens-china-tech-curbs-to-keep-investors-sidelined-fearing-more-steps\/\" title=\"Investors wary of further measures, stay away due to Biden's China tech restrictions.\">quantum information technologies<\/a>. The White House has stated that these sectors\u2062 were chosen \u2064due to \u200dtheir\u200b crucial\u200d role in the development of advanced military, intelligence, surveillance, and network technologies.<\/p>\n<blockquote>\n<h3>Related Stories<\/h3>\n<ul>\n<li><a href=\"http:\/\/www.theepochtimes.com\/china\/hong-kong-stock-market-continues-its-decline-with-more-than-us2-trillion-evaporating-in-past-26-months-5477194\">Hong Kong\u200b Stock \u2064Market \u2062Continues Its Decline With\u2063 More Than US$2 Trillion Evaporating in Past 26 Months<\/a> &#8211; August 21, 2023<\/li>\n<li><a href=\"http:\/\/www.theepochtimes.com\/opinion\/china-funded-cirrus-aircraft-to-list-in-hong-kong-amid-concerns-it-could-be-the-next-tiktok-5450425\">China-Funded Cirrus Aircraft to List in Hong Kong\u2064 Amid Concerns It Could Be the \u2062Next TikTok<\/a> \u2064 &#8211; August 11, 2023<\/li>\n<\/ul>\n<\/blockquote>\n<p>One of the key provisions of\u200c this \u200dexecutive\u2064 order is the requirement for U.S. investors and \u200cbusinesses to regularly\u2062 disclose their investments in Mainland China, \u200bHong Kong, \u200band Macau to the U.S. government. Even entities not \u2063directly \u2063involved\u2062 in the targeted technology sectors are \u2062now obligated\u2062 to \u2064submit\u2063 reports outlining their investments in these high-tech fields.<\/p>\n<p>Tang Jingyuan, a political commentator residing\u200d in the United \u2062States, expressed in an interview with The Epoch Times that this ban \u2063could lead foreign \u2062investors in Hong\u200b Kong to reconsider their positions, \u2063ultimately impacting the city&#8217;s technological and economic landscape.<\/p>\n<p>Mr. Tang emphasized that unlike previous bans and \u200csanctions, which primarily \u200baimed to prevent the CCP from acquiring \u200ccertain\u2062 technologies, this ban focuses on limiting\u2062 the \u200dCCP&#8217;s ability to develop these technologies internally. The consequences \u2064of this investment ban go beyond financial implications and \u200balso affect Hong Kong&#8217;s ability to attract\u2062 skilled workers.<\/p>\n<p>Historically, skilled \u2062workers \u2062tend to follow investment flows. Without sufficient investment,\u200d innovation can be stifled due\u2064 to a\u2064 lack of skilled labor.<\/p>\n<p>According to Mr. Tang, the three\u200c sectors restricted by President Biden&#8217;s ban are crucial \u2064to venture \u200dcapital \u2063technology. He also \u200bpredicts\u200c that other Western allies will likely follow\u200c suit \u2064after the U.S. restrictions. \u200bAs \u2064a result, the CCP&#8217;s reliance on foreign \u200dinvestment for high-tech finance may no longer be effective, and Hong Kong&#8217;s\u2064 status as an \u2064<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-great-britain-lost-hong-kong-is-a-perfect-case-study-for-protecting-taiwan\/\" title=\"How Great Britain Lost Hong Kong Is A Perfect Case Study For Protecting Taiwan\">international financial center<\/a> could continue to decline.<\/p>\n<p>Prior\u2064 to the implementation of President Biden&#8217;s investment ban, the U.S. Department of Commerce and Treasury Department consulted with\u2064 175 industry\u2062 representatives and allied partners, including G7 nations, the European Union, and the United Kingdom. These partners are reportedly considering implementing similar measures based on\u200d their own circumstances.<\/p>\n<h2>High-Tech Finance\u200c in\u2062 Hong Kong<\/h2>\n<p>Before and after China&#8217;s \u2062entry into\u2062 the\u200d World Trade Organization (WTO), Hong Kong played a crucial \u200drole in\u200c attracting skilled workers, funds, and technology for the CCP. Western countries,\u2062 particularly the United States, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/south-korea-leftist-presidential-contender-risks-race-questioning-military-service-exemption-for-k-pop-superstars-bts\/\" title=\"South Korea: Leftist Presidential Contender Risks Race Questioning Military Service Exemption for K-Pop Superstars BTS\">granted special privileges<\/a> to Hong Kong,\u200c exempting it from tariffs and \u200dallowing the Hong Kong dollar to have free convertibility with foreign currencies. Notably, certain Western high-tech sanctions imposed on China did not apply\u2062 to Hong\u200c Kong. This unique \u2062trade status propelled Hong Kong to \u2062become a \u200cpremier entrep\u00f4t \u2064and solidified its position as a major commodity export hub.<\/p>\n<p>Foreign capital flowed into Hong Kong, which then directed \u200cinvestments into mainland \u200cChina. The \u2064city thrived on re-exporting goods, earning substantial\u200c &#8220;service fees.&#8221;\u2062 For example, in 2018, Hong Kong&#8217;s\u2063 re-export\u2063 trade volume \u200cexceeded three times the size of its GDP. Charging only \u200caround 6 percent in service fees allowed\u200b Hong Kong to\u200c achieve \u200ca scale \u200cequivalent to 20 percent of its GDP.<\/p>\n<p>One of Hong Kong&#8217;s major sources of revenue came from re-exporting technology goods, particularly electronics and telecommunications products, which were \u200din high demand in \u2064Shenzhen, the world&#8217;s largest manufacturing hub for these goods.<\/p>\n<p>Research \u200con the &#8220;Overview of Hong\u200b Kong&#8217;s Electronics Industry&#8221; revealed that before 2022, Hong Kong was the leading exporter of integrated circuits, the second-largest \u2062exporter of mobile phones, computer accessories, and cameras, and the third-largest exporter\u200b of imaging and recording\u200c equipment.<\/p>\n<p>The electronics sector became Hong Kong&#8217;s dominant industry,\u200b accounting for 72.6 percent of\u200b total exports in 2021. Approximately \u200bthree-quarters of these \u2064exports consisted of components that were often transshipped to mainland China for assembly and\u2064 processing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a move to protect national security, the US has imposed a high-tech investment ban on the Chinese Communist Party (CCP), including Hong Kong and Macau. This unprecedented action is expected to severely impact Hong Kong&#8217;s high-tech sector.<\/p>\n","protected":false},"author":2336,"featured_media":2010815,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2010814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2010814","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2336"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2010814"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2010814\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2010815"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2010814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2010814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2010814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}