More than 9,000 foreign firms operate in Hong Kong, among them 1,300 from the United States. So when the Chinese legislature recently passed a new security law intended to prevent “secession, subversion, terrorism and foreign interference” in Hong Kong, many CEOs and top executives began wondering about the business implications. The U.S. State Department added to the uncertainty last month by declaring that Hong Kong is no longer autonomous enough to warrant special treatment.
What Will Happen to Your Business in Hong Kong?
More than 9,000 foreign firms operate there.
June 17, 2020
Didier Marti/Getty Images
Summary.
Recent developments in Hong Kong pose significant threats to foreign firms operating there – of which 1,300 or so are US firms. What exactly happens to them will depend to a large extent on why they are in Hong Kong (is it just for the Hong Kong market, for China’s markets, or for Asia as a whole?). But in any event, all companies should take care to secure their people, consider potential scenarios, and create options in the event a major move is required.
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Global Collaboration Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Global Collaboration. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to overcome barriers when working globally.