US Congress Passes HK Sanctions Targeting Banks

The US Congress on Thursday passed tough new sanctions that target banks over infringements on Hong Kong's autonomy, dialing up pressure two days after China imposed the national security law on the SAR.

China has threatened "strong countermeasures" if the act becomes law and President Donald Trump has not indicated if he will sign it, although lawmakers likely could override a veto.

"Our timing could not be more critical," said Senator Chris Van Hollen, a Democrat who helped lead the bipartisan measure.

"I hope President Trump will sign this immediately," he said on the Senate floor.

In a legislative fast-track move that does not require a full vote, the Senate unanimously approved the Hong Kong Autonomy Act, a day after the House of Representatives did likewise.

The Senate already passed the act last week but it needed to vote once more due to a technical change in the House version.

The Hong Kong Autonomy Act goes a step further than a sanctions law last year, which Trump reluctantly signed despite protests from Beijing.

The new legislation targets Chinese officials and the Hong Kong police, making US sanctions against them mandatory if they are identified in two consecutive government reports as working to impede Hong Kong's freedoms.

In a crucial point of pressure, the act would punish banks - including blocking loans from US institutions - if they conduct "significant transactions" with individuals identified as infringing on autonomy in the leading financial hub.

Senator Pat Toomey, a Republican who teamed up with Van Hollen on the legislation, said the goal was to "create real penalties on those responsible for this campaign."

"The Chinese Communist Party's deepest fear is that mainland Chinese citizens will demand the freedoms that Hong Kongers enjoy, and that quest for freedom on the mainland would pose an unacceptable risk to the authoritarian control of the communist regime," he said.

Trump could still waive sanctions against particular people or entities but the act would limit his discretion, letting Congress overrule him.

In another effort on Hong Kong, lawmakers are seeking to make it easier for residents of the territory to seek refugee status in the United States.

Britain has already said it will allow millions of Hong Kongers to relocate and eventually seek British nationality due to the security law.

The US measure, if passed, would put Hong Kongers who participated in pro-democracy protests in the same category as Cubans - giving them a priority as refugees, with no limits on their numbers.

The move has support across party lines but it is unclear if it would enjoy the backing of Trump, for whom restricting immigration from non-Western nations is a signature issue.

"The US must help Hong Kongers preserve their society at home and find refuge for those who face persecution for exercising the rights once guaranteed under the Joint Declaration," said Senator Marco Rubio, a co-sponsor of the bill and ally of Trump. (AFP/Reuters)