U.S. legislators say Hong Kong is increasingly a hub for financial crime, per the Wall Street Journal

U.S. House of Representatives lawmakers have urged Treasury Secretary Janet Yellen to reconsider the United States‘ relationship with Hong Kong’s banking sector, as reported by the Wall Street Journal on Monday.

According to a letter from the bipartisan leaders of the House Select Committee on the Chinese Communist Party, Hong Kong has become a center for numerous violations of U.S. trade regulations, including the export of restricted Western technology to Russia and the establishment of front companies for purchasing Iranian oil. This letter, which is set to be made public on Monday, indicates that Hong Kong has transitioned from a reliable global financial hub to a significant contributor to the growing authoritarian alliance among China, Iran, Russia, and North Korea.

The letter raises concerns about the appropriateness of the long-standing U.S. policy towards Hong Kong, especially regarding its financial and banking sectors. It highlights research indicating that nearly 40% of goods exported from Hong Kong to Russia in 2023 were high-priority items, such as semiconductors, which could aid Russia in its ongoing conflict in Ukraine.

The U.S. Treasury Department and the House Select Committee have not yet responded to requests for comments from Reuters. Additionally, Hong Kong’s trade office in New York was unavailable for immediate comment.