Hong Kong Now A Hub For Financial Crimes, U.S. Lawmakers Say

U.S. lawmakers have accused Hong Kong of becoming a center for financial crimes, including money laundering and sanctions evasion, under Beijing’s increasing control, CNN reporter Nectar Gan wrote.

Hong Kong was described as a key player in an "authoritarian axis" involving China, Iran, Russia, and North Korea.

In a letter to Treasury Secretary Janet Yellen, bipartisan leaders of the House Select Committee on China urged the U.S. government to reassess its economic ties with Hong Kong.

The committee expressed concerns about the city’s financial sector, which constitutes over one-fifth of Hong Kong’s GDP and hosts several major U.S. banks.

The lawmakers accused Hong Kong of being a "global leader" in illicit activities, including exporting controlled Western technology to Russia, establishing front companies to purchase Iranian oil, and operating "ghost ships" to facilitate illegal trade with North Korea.

GOP Representative John Moolenaar, the committee’s chair, and Democratic Representative Raja Krishnamoorthi, the panel’s ranking member, described Hong Kong as a key player in an "authoritarian axis" involving China, Iran, Russia, and North Korea.

The letter also referenced research indicating that nearly 40% of goods shipped from Hong Kong to Russia between August and December 2023 were high-priority items likely used for military production, including missiles and aircraft.

Since Beijing’s implementation of a national security law in 2020, the lawmakers noted, Hong Kong has shifted from a trusted financial hub to a focal point for U.S. scrutiny in the escalating rivalry between Washington and Beijing.