The US sends a stern warning to American companies based in Hong Kong, as China establishes its dominance in the financial sector

US authorities are sending a warning to American companies in Hong Kong amid growing concerns over China’s reach. The US has raised concerns about China’s ability to gain access critical American company data.

This comes as the most recent indication of Biden’s growing fears about Hong Kong’s independence. These concerns have continued growing since Beijing launched a crackdown on local pro-democracy demonstrations in 2019.

The US also appears to be concerned about the new regulations allowing Beijing to intercept anyone who it believes isn’t complying with anti-China sanctions.

The warning follows Trump’s decision last year to decrease trade privileges in Hong Kong. The US previously awarded these privileges in recognition of the territory’s independence from Beijing.

China crackdown intensifies

However, American companies in Hong Kong aren’t the only ones suffering as of recent times. This comes after Wechat and Alipay removed Didi’s main app.

Wechat and Alipay which have over 1 billion users. Wechat and Alipay are ‘super-apps’, meaning users can open and use other apps without leaving. Didi shares have dipped 20 percent since the removal.

While Didi’s half-billion existing users will still be able to order rides, for now, China’s cybersecurity crackdown adds to the uncertainty surrounding all the nation’s internet companies. 

Chinese regulators asked Didi as early as three months ago to delay its landmark U.S. IPO because of national security concerns involving its huge trove of data.