Executive Order 13936

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Executive Order 13936
The President’s Executive Order on Hong Kong Normalization
Seal of the President of the United States.svg
President Trump Signs an Executive Order (50119222336).jpg
President Donald Trump signing the order at the Resolute desk, with Secretary of the Treasury Steven Mnuchin (left) and Secretary of State Mike Pompeo (right)
Type Executive order
Executive Order number13936
Signed by Donald Trump on July 14, 2020 (2020-07-14)
Federal Register details
Federal Register document number 2020-15646
Publication dateJuly 17, 2020 (2020-07-17)
Document citation85 FR 43413
Summary
Suspends or eliminates different and preferential treatment for Hong Kong

Executive Order 13936, entitled "The President’s Executive Order on Hong Kong Normalization", is an executive order signed by U.S. President Donald Trump on July 14, 2020. [1] On the same day Trump had signed into law Hong Kong Autonomy Act, one of the laws from which the order derives authority. The act and the executive order are the U.S. response to the imposition of a controversial national security law in Hong Kong by the Standing Committee of the National People's Congress of China on June 30, 2020, which was described as "an unusual and extraordinary threat [...] to the national security, foreign policy, and economy of the United States" in the preamble.

Contents

According to Trump, he said the executive order was to "hold China accountable for its aggressive actions against the people of Hong Kong", and Hong Kong would be treated the same as China. [2] The order directs government agencies to eliminate preferential treatments given to Hong Kong as compared to mainland China.

Background

The Hong Kong Policy Act of 1992 (HKPA), last amended by the Hong Kong Human Rights and Democracy Act of 2019, is the groundwork for U.S. policies that maintain relations with Hong Kong as separate from mainland China, to the extent consistent with the 1984 Sino-British Joint Declaration, after the transfer of sovereignty over Hong Kong. [3] While existing U.S. laws and certain international agreements continue to apply to the Hong Kong Special Administrative Region after July 1997, section 202 of the act allows the U.S. president to issue an executive order to suspend such treatments if he determines that Hong Kong "is not sufficiently autonomous to justify treatment" different from that accorded China under U.S. laws.

In May 2020, after the Chinese National People's Congress decision on Hong Kong national security legislation was adopted, Secretary of State Mike Pompeo reported to the U.S. Congress that Hong Kong was no longer autonomous. [4] Following the enactment of the Hong Kong national security law by Standing Committee of the National People's Congress in June 2020, the U.S. Congress promptly and unanimously passed the Hong Kong Autonomy Act.

Provisions

The measures introduced in the executive order include: [3]

Implementations

Sanctions

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

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

On November 9, 2020, four more individuals who were responsible for National Security were sanctioned: [6]

On December 7, 2020, pursuant to the order, the U.S. 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]

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

On 16 July 2021, all 7 deputy directors of the Hong Kong Liaison Office were sanctioned for their role in reducing Hong Kong's autonomy, pursuant to the 2020 Hong Kong Autonomy Act: [9] [10]

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.

Country of origin marking of products

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] [11] which stipulates that every article of foreign origin shall be marked the English name of the country of origin. On August 11, 2020, U.S. 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. [12] This reversed the practice announced by the then-U.S. Customs Service in June 1997, which determined that goods from Hong Kong should continue to indicate their origin as "Hong Kong" after July 1, 1997. [13]

This change does not affect the reporting for purposes of assessing duties under the Harmonized Tariff Schedule of the United States. [14]

Suspension or termination of three bilateral agreements

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 U.S. Department of State referred to this as part of the implementation measures set forth in the executive order. [15] [16]

Responses

Signing of the executive order

China's ministry of foreign affairs criticized the United States for interfering in "purely China’s internal affairs", namely the implementation of a law that safeguards the country's national security. The spokesperson urged the United States to "correct its mistakes", otherwise China will give "firm response" and impose sanctions on relevant U.S. persons. [17]

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 United States 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 United States under the rules of the World Trade Organization (WTO). [18]

Countersanctions

On August 11, 2020, China imposed sanctions without specification on eleven U.S. 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. [19]

Criticism by the Hong Kong government

The Hong Kong government denounced the executive order as having "[politicized] juridical co-operation." As a result, the Hong Kong government announced that it had, at the central government's instruction, notified the U.S. Consulate General of the suspension of the agreements of surrender of fugitive offenders and of mutual legal assistance on criminal matters. [16]

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. [20]

Extensions

U.S. President Joe Biden extended the executive order for another year on July 7, 2021, July 11, 2022, July 11, 2023, and July 12, 2024. [21] [22] [23] [24]

Related Research Articles

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The United States-Hong Kong Policy Act, or more commonly known as the Hong Kong Policy Act or Hong Kong Relations Act, is a 1992 act enacted by the United States Congress. It allows the United States to continue to treat Hong Kong separately from Mainland China for matters concerning trade export and economic control after the 1997 Hong Kong handover.

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References

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