Hong Kong has long been a vital hub for U.S. businesses, offering a strategic location, open economy, and its unique status under the "One Country, Two Systems" framework. However, the past four years have seen significant shifts in the city’s political and economic landscape. Beijing’s tightening control has intensified, marked by the imposition of the National Security Law in 2020 and the subsequent erosion of civil liberties and judicial independence. Meanwhile, U.S.-China tensions have escalated further, fueled by trade disputes, sanctions, and competing geopolitical strategies, with Hong Kong caught in the crossfire. The U.S. has responded by removing Hong Kong’s preferential trade status and imposing targeted sanctions, significantly altering the operating environment for foreign businesses. As Hong Kong aligns more closely with mainland China’s policies and Beijing’s "Greater Bay Area" ambitions, U.S. companies face growing challenges, from regulatory risks to shifting market dynamics. These developments demand a reevaluation of strategies for businesses seeking to navigate Hong Kong’s rapidly changing environment.
Hong Kong Under Pressure: How U.S. Companies Can Adapt to Changing Realities
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