Executive Order 13936

Search result of Carrie Lam, the Chief Executive of Hong Kong, in the OFAC Saction List (i.e. SDN List)

On August 7, 2020, pursuant to the order, the US Department of the Treasury imposed sanctions on 11 individuals for "undermining Hong Kong's autonomy and restricting the freedom of expression or assembly", including:[5]

• Carrie Lam, Chief Executive of Hong Kong, member of the Executive Council, member of the Committee for Safeguarding National Security (CSNS), who pushed the 2019 Hong Kong extradition bill
• Chris Tang, Commissioner of Hong Kong Police Force, member of the CSNS, under whose leadership the police besieged the Hong Kong Polytechnic University in November 2019
• Stephen Lo, Former Commissioner of Hong Kong Police Force, under whose leadership 4000 protesters were arrested and 1600 were injured
• John Lee, Secretary for Security of Hong Kong, member of the Executive Council, member of the CSNS, who introduced a new police unit dedicated to enforcing the Hong Kong National Security Law
• Teresa Cheng, Secretary for Justice of Hong Kong, member of the Executive Council, member of the CSNS
• Erick Tsang, Secretary for Constitutional and Mainland Affairs of Hong Kong, member of the Executive Council
• Xia Baolong, Director of the Hong Kong and Macao Affairs Office of the State Council of China
• Zhang Xiaoming, Deputy Director of the Hong Kong and Macao Affairs Office of the State Council of China
• Luo Huining, Director of the Hong Kong Liaison Office of the Chinese government
• Zheng Yanxiong, director, Office for Safeguarding National Security in Hong Kong
• Eric Chan, Secretary General of the CSNS

On 9 November 2020, 4 more individuals were sanctioned:[6]

• Li Jiangzhou, Deputy Director of the Office for Safeguarding National Security
• Edwina Lau Chi-wai, head of the National Security Division of the Hong Kong Police Force
• Steve Li Kwai-Wah, Senior Superintendent of the Hong Kong Police Force
• Deng Zhonghua, Deputy Director of the Hong Kong & Macau Affairs Office (HKMAO)

On December 7, 2020, pursuant to the order, the US Department of the Treasury imposed sanctions on the entire 14 Vice Chairpersons of the National People's Congress of China, for "undermining Hong Kong's autonomy and restricting the freedom of expression or assembly", including:[7]

• Cai Dafeng
• Cao Jianming
• Chen Zhu
• Padma Choling
• Ding Zhongli
• Hao Mingjin
• Arken Imirbaki
• Ji Bingxuan
• Shen Yueyue
• Wan Exiang
• Wang Chen
• Wang Dongming
• Wu Weihua
• Zhang Chunxian

On 15 January 2021, 6 more individuals were sanctioned, including:[8]

• You Quan, Vice Chairman of the Central Leading Group on Hong Kong and Macau Affairs
• Sun Wenqing AKA Sun Qingye, Deputy Director of the Office for Safeguarding National Security in the HKSAR
• Tam Yiu-Chung, Hong Kong delegate to the National People's Congress Standing Committee
• Frederic Choi Chin-Pang, official in the National Security Division of the Hong Kong Police
• Kelvin Kong Hok-lai, official in the National Security Division of the Hong Kong Police
• Andrew Kan Kai-yan, official in the National Security Division of the Hong Kong Police

Also subject to sanctions on August 7th, 2020, corresponding with an action by the United Nations Security Council, is Bi Sidi Souleymane from the Central African Republic. The militia group Return, Reclamation, Rehabilitation (3R), is responsible for the killing, torture, rape, or displacement of thousands since 2015 under his leadership.[9]

As a result of their inclusion in the Specially Designated Nationals List, all of the property and interests in property in the United States are blocked for the sanctioned and must be reported to the Office of Foreign Assets Control. All United States citizens are prohibited from transactions (including the contribution or provision of funds, goods or services) involving the property or interest of the eleven sanctioned persons.

The executive order suspended the application of section 201(a) of HKPA to section 304 of the Tariff Act of 1930 (19 U.S. Code § 1304),[1][10] which stipulates that every article of foreign origin shall be marked the English name of the country of origin. On August 11, 2020, US Customs and Border Protection (USCBP) announced that the imported goods produced in Hong Kong could no longer indicate themselves as "Made in Hong Kong" after September 25, but must indicate "China" as the country of origin instead.[11] This reversed the practice announced by the then-US Customs Service in June 1997, which determined that that goods from Hong Kong should continue to indicate their origin as "Hong Kong" after July 1, 1997.[12]

This change does not affect the reporting for purposes of assessing duties under the Harmonized Tariff Schedule of the United States.[13]

On August 18, 2020, the Consulate General of the United States in Hong Kong notified the government of Hong Kong that the United States had suspended or terminated three bilateral agreements: for the surrender of fugitive offenders, for the transfer of sentenced persons and for reciprocal tax exemptions on income derived from the international operation of ships. The US Department of State referred to this as part of the implementation measures set forth in the executive order.[14][15]

China's ministry of foreign affairs criticized the US for interfering in "purely China’s internal affairs", namely the implementation of a law that safeguards the country's national security. The spokesperson urged to US to "correct its mistakes", otherwise China will give "firm response" and impose sanctions on relevant US persons.[16]

The HKSAR government, in addition to reiterating the necessity of the national security law, said the SAR's special status as a separate customs territory, under the "One Country, Two Systems" principle, is conferred by the PRC Constitution and the Hong Kong Basic Law. It warned the US that unliteral measures that limit normal business activities would affect its own interests, and stressed that the measures imposed under Hong Kong Autonomy Act and the executive order "do not have any legal effect" on Hong Kong's financial institutions. It might also consider taking actions against the US under the rules of the World Trade Organization (WTO).[17]

On August 11, 2020, China imposed sanctions without specification on eleven US individuals, namely Senators Marco Rubio, Ted Cruz, Josh Hawley, Tom Cotton and Pat Toomey, Representative Chris Smith, Carl Gershman (president of the National Endowment for Democracy), Derek Mitchell (president of the National Democratic Institute), Daniel Twining (president of the International Republican Institute), Kenneth Roth (executive director of the Human Rights Watch) and Michael Abramowitz (president of Freedom House). The spokesman of the foreign ministry said the sanctioned "behaved badly" on Hong Kong-related issues. Rubio, Cruz and Smith had been put on a travel ban by China.[18]

Hong Kong's commerce secretary Edward Yau condemned USCBP's measures, saying labelling a product from Hong Kong as "made in some other place" was "calling white black". He added that this practice did not comply with WTO rules, as it undermined Hong Kong's status as a separate customs territory.[19]

Hong Kong government severely reprimanded the US on August 20, denouncing such acts as having "[politicized] juridical co-operation" which damaged the basis of juridical cooperation between the governments. As a result, Hong Kong government announced that it had, at the central government's instruction, notified the US Consulate General of the suspension of the agreements of surrender of fugitive offenders and of mutual legal assistance on criminal matters.[15] It said it would continue to upload the principle of mutual assistance and reciprocity.