H.R. 2661: Hong Kong Economic and Trade Office (HKETO) Certification Act

This bill, titled the Hong Kong Economic and Trade Office (HKETO) Certification Act, seeks to regulate the privileges and operations of the Hong Kong Economic and Trade Offices (HKETOs) in the United States based on Hong Kong's autonomy status in relation to the People's Republic of China (PRC).

Key Provisions

• Determination of Privileges: The Secretary of State is required to assess whether the HKETOs merit the continuation of certain privileges, exemptions, and immunities. This assessment must occur within 30 days of the bill's enactment and include justification relating to U.S. national security interests.
• Termination of Operations: If the Secretary of State concludes that the HKETOs do not merit these privileges, they must halt operations within 180 days of that determination.
• Continued Operations: If it is determined that the HKETOs do maintain their privileges, they may continue operating for up to one year or until the next assessment, assuming no disapproval resolution is passed by Congress.
• Congressional Review: Congress can introduce a “disapproval resolution” to reject the certification that allows HKETOs to continue their privileged operations. The resolution can be introduced by leadership in either the House or Senate, and if not acted upon in a specified timeframe, it will be considered discharged.
• Limitations on Government Contracting: U.S. government entities can only enter partnerships with HKETOs if certain conditions are met, including a valid certification from the Secretary of State and a lack of enacted disapproval resolution within a designated period. Contracts that promote narratives undermining Hong Kong's autonomy or justify rights violations cannot be made.
• Policy Stance: The bill establishes the U.S. policy not to promote Hong Kong as an autonomous entity or the Hong Kong Government as one that protects human rights, as long as it is determined that Hong Kong lacks a high degree of autonomy from the PRC.

Definitions

The bill defines the "Hong Kong Economic and Trade Offices" as those established under U.S. law to extend privileges, exemptions, and immunities as outlined in a past act from 1997.

Implications for Communication and Partnership

The HKETO Certification Act places restrictions on U.S. government collaboration with HKETOs, specifically discouraging any effort that may aid in the visualization of Hong Kong as a city with high autonomy. It also aligns U.S. policy with a broader stance on Hong Kong's condition of autonomy and challenges faced by its citizens, such as political rights.

Relevant Companies

• NKE (Nike, Inc.): Nike may be impacted due to its operations and marketing strategies in Hong Kong as they rely on the region's economic status.
• AAPL (Apple Inc.): Apple has significant investments and stores in Hong Kong, which might be affected by changes in the region’s policy and international relations.
• V (Visa Inc.): Visa's business in Hong Kong could be influenced by shifts in trade policies or restrictions resulting from the bill.
• HD (Home Depot, Inc.): Home Depot may feel an indirect effect due to overall economic shifts in Hong Kong and supply chain adjustments.