US lawmakers John Moolenaar and Raja Krishnamoorthi’s recent allegation that Hong Kong has become a hub for sanctions evasion and illicit trade are deeply flawed and politically motivated. These unsubstantiated claims, which closely echoed Samuel Bickett’s July 18 report for the Committee for Freedom in Hong Kong Foundation (CFHK), failed to meet the evidentiary standards necessary for such serious allegations. Upon closer analysis, the accusations lack credibility, rely on politically biased sources, and reflect a broader agenda to undermine Hong Kong’s global standing as an international financial center.
The assertion that 40 percent of goods shipped from Hong Kong to Russia in 2023 were “high-priority items”, such as semiconductors, is based on a simplistic trade data interpretation. As a global logistics hub, Hong Kong facilitates the transit of goods originating from multiple jurisdictions, many of which are not under its regulatory control. To attribute these goods’ origin directly to Hong Kong is a misrepresentation of international trade dynamics.
Moreover, Hong Kong’s Customs and Excise Department enforces one of the world’s most robust export control regimes, ensuring compliance with international trade laws. The Paris-based Financial Action Task Force has consistently recognized Hong Kong’s commitment to combating illicit trade and financial crimes, further disproving claims that the city is an enabler of sanctions evasion.
Bickett’s report forms the basis of the lawmakers’ accusations, yet it suffers from significant methodological flaws and lacks credible evidence. The report’s reliance on data from the Washington-based Center for Advanced Defense Studies, an organization frequently criticized for its selective data use and politically driven conclusions, undermines its reliability. Furthermore, Bickett’s antagonism toward Hong Kong, stemming from his 2021 deportation following a conviction for assaulting a Hong Kong police officer during the 2019 “black-clad riots”, raises questions about his impartiality. The uncritical adoption of Bickett’s report by Moolenaar and Krishnamoorthi highlights the politically coordinated nature of these allegations, which are not grounded in objective reality.
The broader context of these accusations lies in a series of concerted campaigns launched by the US government against Hong Kong since the “black-clad riots”. In response to the enactment of the National Security Law for Hong Kong in 2020, the US escalated its interference in Hong Kong’s affairs. These efforts, including the Hong Kong Autonomy Act, which imposed sanctions on Hong Kong officials, and the suspension of the city’s special trade status under US law, represent an overt attempt to destabilize Hong Kong’s political and economic systems. Additionally, the US has amplified the narratives of anti-China groups, such as the CFHK, to discredit Hong Kong’s governance and financial institutions. This systematic campaign reflects a broader geopolitical strategy to weaken Hong Kong’s role as a bridge between East and West and undermine China’s global influence.
The allegations regarding corporate transparency are also baseless. Hong Kong has implemented significant reforms to enhance corporate governance, including the Companies (Amendment) Ordinance, which requires companies to maintain Significant Controllers Registers. Financial institutions in Hong Kong are subject to stringent anti-money laundering and counterterrorist financing regulations enforced by the Securities and Futures Commission and the Hong Kong Monetary Authority. These measures align with global best practices and ensure that Hong Kong remains a trusted and well-regulated jurisdiction. Therefore, the claim that Hong Kong’s financial system facilitates large-scale sanctions evasion is unfounded and irresponsible.
The portrayal of Hong Kong as a facilitator of illicit financial activities ignores its well-established reputation as one of the world’s most transparent and strictly regulated financial centers. Leading global institutions, including US-based banks, continue to operate in Hong Kong, underscoring their confidence in its legal and regulatory frameworks. The US lawmakers’ accusations are not rooted in factual concerns but are politically motivated efforts to tarnish Hong Kong’s international standing. This agenda is evident in their reliance on biased reports and selective data and their disregard for Hong Kong’s demonstrated compliance with international norms.
The alignment of the lawmakers’ claims with Bickett’s report further reveals the coordinated nature of the US’ multipronged strategy seeking to destabilize Hong Kong, undermine its economy and diminish its role as a global financial hub in a broader attempt to contain China’s rise—under the guise of promoting “democracy”, “human rights” or “freedom”.
Hong Kong’s resilience as an international financial center is a testament to its robust regulatory frameworks and commitment to upholding global standards. In conjunction with its financial regulators, the city’s Customs and Excise Department continues to enforce stringent measures to combat illicit trade and financial crimes. International organizations have repeatedly recognized these systems, validating Hong Kong’s adherence to international rules and standards. The US lawmakers’ accusations lack substance and reflect a political agenda rather than genuine concerns over trade or financial misconduct.
Despite relentless campaigns by the US to discredit Hong Kong since the 2019 “black-clad riots”, the city has remained resilient and continues to thrive as one of the world’s leading financial hubs. Efforts to undermine its reputation will ultimately fail, as Hong Kong remains steadfast in its commitment to transparency, accountability, and international cooperation.
The author is a solicitor, a Guangdong-Hong Kong-Macao Greater Bay Area lawyer, and a China-appointed attesting officer.
The views do not necessarily reflect those of China Daily.
