The US amended its Hong Kong Business Advisory six months ago, citing potential concerns following the city's adoption of domestic national security legislation.

Regretfully, the release from the US Departments of Commerce, Homeland Security, and Treasury emphasizes an unfounded and persistent anxiety over the situation of doing business in the city.

In March, Hong Kong enacted Article 23, aligning with Beijing's 2020 national security bill. The US warns of "heightened risks" for businesses and individuals due to the law's broadly defined offenses, which could target standard operations like market research. Additionally, it designates the city as a key transshipment hub where Russia obtains dual-use supplies for its conflict in Ukraine.

Hong Kong and the US have a long history of strong commercial relations. Washington bases a sizable diplomatic mission here and has a long history of supporting US industry in the area, operating an unusual trade surplus. Because of the "arbitrary enforcement of local laws," the travel advice advising US tourists to "exercise increased caution" and the warning seem strangely out of date.

Article 23 of the National Security Law has not resulted in any prosecutions of US companies, businesspeople, or travelers. In light of this fact, a warning that someone might inadvertently break the law seems implausible. The foreign ministry rejected the advice, calling it "misleading," while local authorities affirmed the city is open to US companies.

Although members of the American Chamber of Commerce in Hong Kong expressed concern about US-China ties, the survey conducted in January revealed that 76% of respondents saw Hong Kong as a competitive business hub due to the city's accessibility—two-thirds of its members conduct business in the Greater Bay Area—free flow of capital, and its straightforward tax structure. 78% of respondents said they had no immediate plans to relocate their regional office from Hong Kong.

The city is recognized for trade and investment, with robust contracts and competitive frameworks. Article 23 and the new US guidance won't change this. Businesses also consider future profitability and market size, adhering to local rules. It's hoped that practicality will prevail in leveraging Hong Kong's advantages.