U.S. Lawmakers Call for Reassessment of Hong Kong Financial Ties

Lawmakers in the U.S. House urge Treasury Secretary Janet Yellen to reassess ties with Hong Kong's banking sector, highlighting concerns over its role in money laundering, sanctions evasion, and facilitating trade with adversarial nations. They question if U.S. policies toward Hong Kong remain suitable amid escalating geopolitical tensions.

U.S. lawmakers have expressed serious concerns regarding the financial relationship with Hong Kong, highlighting the city's role in global financial violations. They have urged Treasury Secretary Janet Yellen to reconsider U.S. ties with Hong Kong's banking sector.

According to the House of Representatives' Select Committee on the Chinese Communist Party, Hong Kong is central to breaches of U.S. trade controls, such as exporting restricted Western technologies and creating shell companies to purchase Iranian oil. These activities align Hong Kong more closely with authoritarian regimes, including China, Iran, Russia, and North Korea.

The bipartisan committee leaders emphasized the shift in Hong Kong from a trusted financial hub to a strategic player in global security issues. A letter seen by Reuters, signed by Republican John Moolenaar and Democrat Raja Krishnamoorthi, questions the appropriateness of current U.S. policies towards the city's financial sector.

(With inputs from agencies.)