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JAKARTA - The United States is preparing to impose sanctions on Friday against Chinese officials over Beijing's crackdown on democracy in Hong Kong, as well as a warning to international businesses operating there.

Quoting Reuters on Friday, July 16, a source familiar with the plan said the financial sanctions would target seven officials from China's Hong Kong liaison office, the official platform that projects Beijing's influence into Chinese territory.

Meanwhile, related to the business warning issued by the State Department, it highlighted the US Government's concerns about the impact of Hong Kong's national security law on international companies.

Critics say Beijing implemented the New Security Act last year to facilitate a crackdown on pro-democracy and press freedom activists.

"Let me talk about business advisers," said US President Joe Biden when asked about it at a press conference with German Chancellor Angela Merkel who is visiting Uncle Sam's country, Thursday, July 15 local time.

"The situation in Hong Kong is deteriorating. And the Chinese government is not keeping its commitments on how to deal with Hong Kong, so this is more advice about what might happen in Hong Kong. It's that simple and that complex," President Biden said.

The move, which is sure to anger Beijing, marks the latest attempt by President Biden's administration to hold the Chinese government accountable for what Washington calls the erosion of the rule of law in the former British colony that returned to Chinese control in 1997.

The two men, who asked not to be named, said Hong Kong's actions could still change. One of the sources said the White House was also reviewing a possible executive order on immigration from Hong Kong, but it was still uncertain whether it would be implemented.

Separately, the US Treasury has declined to comment on the matter following media reports this week about possible new sanctions.

"We know that a healthy business community relies on the rule of law, which continues to be undermined by Hong Kong's National Security Act," State Department spokesman Ned Price said Tuesday when asked about the matter.

Meanwhile, US Deputy Secretary of State Wendy Sherman is preparing for visits to Japan, South Korea and Mongolia next week. The State Department's announcement of his trip made no mention of a stop in China, which was anticipated in foreign policy circles and reported in some media.

Earlier, the State Department on Tuesday reinforced warnings to businesses about the increasing risks of owning supply chain and investment links to China's Xinjiang region, highlighting forced labor and human rights abuses there.


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