US "Identifying Banks Involved in Hong Kong Sanctions Transactions"... Considering Export Controls on Chinese Fintech

20 Days Before Presidential Election, Comprehensive Pressure on China... Warning to Identify Banks Within 60 Days
Alibaba's Ant Group Regulation Under Review Again
Special Coordinator Appointed for China-Tibet Issue Intervention
Trump: "If I Hadn't Won, China Would Own the US"

[Asia Economy New York=Correspondent Baek Jong-min] The Donald Trump administration has issued a warning, stating it will identify financial institutions that have conducted transactions with individuals who stripped Hong Kong of its autonomy. It is also seriously considering including the Chinese fintech company Ant Group in export control measures. With the U.S. presidential election just 20 days away and President Trump's approval ratings still lagging, this move is interpreted as an attempt to intensify pressure on China to reverse the situation.

US is pushing export controls on Chinese fintech company Ant
Photo by EPA Yonhap News

On the 14th (local time), the U.S. State Department submitted a report to Congress stating it will identify financial institutions that have conducted transactions within 60 days with 10 sanctioned individuals, including Carrie Lam, the Chief Executive of Hong Kong. Previously, the U.S. Treasury Department imposed sanctions on 11 current and former senior Hong Kong officials, including Lam, Police Commissioner Chris Tang, his predecessor Stephen Lo, and Secretary for Justice Teresa Cheng, following China's implementation of the Hong Kong National Security Law and the enactment of the Hong Kong Autonomy Act.

This State Department report was prepared pursuant to the Hong Kong Autonomy Act and did not mention any new sanction targets or financial institutions beyond those previously sanctioned for involvement in suppressing anti-China protests in Hong Kong. A major foreign media outlet reported that the State Department report, required by the Hong Kong Autonomy Act, was released amid the worst deterioration in U.S.-China relations ahead of the U.S. election.

However, the report clearly stated that 'third-party sanctions (secondary boycotts)' could be imposed on U.S. lenders, foreign exchange traders, real estate brokers, export and remittance companies, and their executives. Recently, officials from the UK and the U.S. have indicated that HSBC and Standard Chartered Bank have expressed support for the Hong Kong Security Law, leading to assessments that these banks could become subjects of surveillance.

Morgan Ortagus, spokesperson for the State Department, said in a statement, "This report was issued to counter the deliberate actions of the Chinese government to suppress the freedoms of Hong Kong residents and to implement the coercive policies of the Chinese Communist Party."

Secretary of State Mike Pompeo also continued pressure on China during a briefing that day. He criticized, saying, "The United States funds 43% of the budget of the World Food Programme (WFP), which won the Nobel Peace Prize. The U.S. contribution is 700 times that of China," and added, "The COVID-19 crisis caused by China is threatening food security."

Pompeo also announced that Robert Destro will serve as the U.S. Special Coordinator for Tibetan Issues. He explained, "Assistant Secretary Destro will focus on advancing dialogue between the Chinese Communist Party government and the Tibetan government-in-exile with the Dalai Lama." This is a clear expression of intent to directly intervene in the highly sensitive Tibet issue for China.

The U.S. administration is reportedly considering including the Chinese fintech company Ant Group in export control measures. A major foreign media outlet cited two sources reporting that "the U.S. State Department has proposed adding Ant Group to the list of entities subject to export bans."

The outlet noted that it is unclear when the export ban on Ant Group will be reviewed but said the move appears intended to block U.S. investor participation ahead of Ant Group's simultaneous listing on the Hong Kong and Shanghai stock exchanges, estimated to be worth $35 billion. Ant Group's valuation upon listing is expected to reach $250 billion, potentially surpassing Saudi Arabia's state-owned oil company Aramco.

If included on the export control list, it will become very difficult for U.S. companies to export high-tech products to Ant Group. Ant Group, in which Jack Ma, founder of China's largest e-commerce company Alibaba, holds a 50.5% stake, has over 900 million users worldwide.

President Trump continued his criticism of China that day. In a virtual speech to the New York Economic Club, he claimed, "I ended the Trans-Pacific Partnership (TPP), which was favorable to China. If I had not been elected, China would have owned the United States." The day before, during a campaign rally in Pennsylvania, he said, "If Joe Biden wins, China wins."

This content was produced with the assistance of AI translation services.