Executive order to normalize United States–Hong Kong relations
Executive Order 13936
The President’s Executive Order on Hong Kong Normalization
President Donald Trump signing the order at the Resolute desk, with Secretary of the Treasury Steven Mnuchin (left) and Secretary of State Mike Pompeo (right)
According to Trump, he said the executive order was to "hold China accountable for its aggressive actions against the people of Hong Kong", and Hong Kong would be treated the same as China.[2] The order directs government agencies to eliminate preferential treatments given to Hong Kong as compared to mainland China.
The Hong Kong Policy Act of 1992 (HKPA), last amended by the Hong Kong Human Rights and Democracy Act of 2019, is the groundwork for U.S. policies that maintain relations with Hong Kong as separate from mainland China, to the extent consistent with the 1984 Sino-British Joint Declaration, after the transfer of sovereignty over Hong Kong.[3] While existing U.S. laws and certain international agreements continue to apply to the Hong Kong Special Administrative Region after July 1997, section 202 of the act allows the U.S. president to issue an executive order to suspend such treatments if he determines that Hong Kong "is not sufficiently autonomous to justify treatment" different from that accorded China under U.S. laws.
Search result of Carrie Lam, the Chief Executive of Hong Kong, in the OFAC Sanction List (i.e. SDN List)
On August 7, 2020, pursuant to the order, the U.S. Department of the Treasury imposed sanctions on 11 officials for "undermining Hong Kong's autonomy and restricting the freedom of expression or assembly", including:[5]
John Lee, Current Chief Executive of Hong Kong, member of the Executive Council, member of the CSNS, who introduced a new police unit dedicated to enforcing the Hong Kong National Security Law
Kelvin Kong Hok-lai, official in the National Security Division of the Hong Kong Police
Andrew Kan Kai-yan, official in the National Security Division of the Hong Kong Police
On 16 July 2021, all 7 deputy directors of the Hong Kong Liaison Office were sanctioned for their role in reducing Hong Kong's autonomy, pursuant to the 2020 Hong Kong Autonomy Act:[9][10]
As a result of their inclusion in the Specially Designated Nationals List, all of the property and interests in property in the United States are blocked for the sanctioned and must be reported to the Office of Foreign Assets Control. All United States citizens are prohibited from transactions (including the contribution or provision of funds, goods or services) involving the property or interest of the eleven sanctioned persons.
Country of origin marking of products
The executive order suspended the application of section 201(a) of HKPA to section 304 of the Tariff Act of 1930 (19 U.S. Code § 1304),[1][11] which stipulates that every article of foreign origin shall be marked the English name of the country of origin. On August 11, 2020, U.S. Customs and Border Protection (USCBP) announced that the imported goods produced in Hong Kong could no longer indicate themselves as "Made in Hong Kong" after September 25, but must indicate "China" as the country of origin instead.[12] This reversed the practice announced by the then-U.S. Customs Service in June 1997, which determined that goods from Hong Kong should continue to indicate their origin as "Hong Kong" after July 1, 1997.[13]
Suspension or termination of three bilateral agreements
On August 18, 2020, the Consulate General of the United States in Hong Kong notified the government of Hong Kong that the United States had suspended or terminated three bilateral agreements: for the surrender of fugitive offenders, for the transfer of sentenced persons and for reciprocal tax exemptions on income derived from the international operation of ships. The U.S. Department of State referred to this as part of the implementation measures set forth in the executive order.[15][16]
Responses
Signing of the executive order
China's ministry of foreign affairs criticized the United States for interfering in "purely China’s internal affairs", namely the implementation of a law that safeguards the country's national security. The spokesperson urged the United States to "correct its mistakes", otherwise China will give "firm response" and impose sanctions on relevant U.S. persons.[17]
The HKSAR government, in addition to reiterating the necessity of the national security law, said the SAR's special status as a separate customs territory, under the "One Country, Two Systems" principle, is conferred by the PRC Constitution and the Hong Kong Basic Law. It warned the United States that unliteral measures that limit normal business activities would affect its own interests, and stressed that the measures imposed under Hong Kong Autonomy Act and the executive order "do not have any legal effect" on Hong Kong's financial institutions. It might also consider taking actions against the United States under the rules of the World Trade Organization (WTO).[18]
The Hong Kong government denounced the executive order as having "[politicized] juridical co-operation." As a result, the Hong Kong government announced that it had, at the central government's instruction, notified the U.S. Consulate General of the suspension of the agreements of surrender of fugitive offenders and of mutual legal assistance on criminal matters.[16]
Hong Kong's commerce secretary Edward Yau condemned USCBP's measures, saying labelling a product from Hong Kong as "made in some other place" was "calling white black". He added that this practice did not comply with WTO rules, as it undermined Hong Kong's status as a separate customs territory.[20]
Extensions
U.S. President Joe Biden extended the executive order for another year on July 7, 2021, July 11, 2022, July 11, 2023, and July 12, 2024.[21][22][23][24]
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