“Many U.S. companies only partially operate on the mainland, and some of them are basically shut out. Having offices in Hong Kong lets them have a footprint in China without being openly subject to CCP rule”
“China is exerting more direct control of Hong Kong through the Committee for Safeguarding National Security and another new body called the “Office for Safeguarding National Security of the Central People’s Government in the Hong Kong Special Administrative Region,” which is totally under the control of the mainland and not subject to Hong Kong jurisdiction at all. As the lines between the CCP and Hong Kong governance become blurrier, it becomes harder to claim you do not collaborate with or enable foreign governments that operate ethnic concentration camps.
And the NSL asks for much collaboration. Article 43 of the NSL empowers Hong Kong police with authorities to investigate suspected subversion. Specifically, law enforcement can “[require] a person who published information or the relevant service provider [i.e. technology company] to delete the information or provide assistance” including decryption. If the service provider refuses, the police can petition for a warrant to force the intended digital deeds.
In other words, to operate in Hong Kong, a technology company, foreign or domestic, must accept being deputized as a CCP informant. Failure to comply means possible fines of up to $100,000 HKD (around $13,000 USD) and six months in prison.
There are also provisions for surveillance.”