Hong Kong Economic and Trade Offices

Hong Kong Economic and Trade Offices

January 20, 2023
Hong Kong Economic and Trade Offices
Hong Kong Economic and Trade Offices (HKETOs) are the
Overseas HKETOs operate autonomously from the PRC’s
official representative offices of the Government of the
foreign missions except in the realm of consular affairs.
Hong Kong Special Administrative Region (HKSAR) of
PRC diplomatic and consular missions can assist overseas
the People’s Republic of China (PRC, or China). Following
Hong Kong residents who are PRC citizens with lost travel
the PRC’s 2020 imposition of a “national security law”
documents, evacuation services, and notarial and
(NSL) on Hong Kong, some Members of Congress have
authentication services. The Government of the HKSAR
questioned whether Hong Kong remains “sufficiently
may issue travel documents for entry into and exit from
autonomous” under U.S. law (as described below) to justify
Hong Kong but does so with authorization of the PRC
having its own offices in the United States, separate from
government under the terms of the Joint Declaration.
the PRC’s official missions. The Government of the
HKSAR maintains four HKETOs in mainland China and
HKETO Responsibilities
fourteen additional offices around the world, including in
New York, San Francisco, and Washington, DC. They

Trade Promotion: HKETO interacts with U.S.
report to the Commerce and Economic Development
policymakers, Members of Congress, local governments,
Bureau overseen by the HKSAR’s Secretary of Finance.
and business groups to promote bilateral trade between
Hong Kong and the United States.
Background

Cultural Diplomacy: HKETO hosts regular events in
The PRC committed to allowing Hong Kong to “enjoy a
various cities in the United States to promote artists and
high degree of autonomy, except in foreign and defence
musicians, as well as other cultural productions from
[sic] affairs” as part of the 1984 Sino-British Joint
Hong Kong.
Declaration on the Question of Hong Kong (“Joint

Declaration”)

Official Travel for Hong Kong Government
, the international treaty under which the
Officials: HKETO organizes overseas travel and
United Kingdom agreed to transfer sovereignty over Hong
arranges meetings with local policymakers and business
Kong to China in July 1997. (See CRS In Focus IF12070,
leaders for senior Hong Kong government officials.
China Primer: Hong Kong.)

Non-Emergency Assistance to Hong Kong
The Joint Declaration stipulates that, following the 1997
Residents Abroad: Assists Hong Kong residents in the
handover, Hong Kong “will retain the status of a free port
United States with non-consular issues. Consular issues,
and a separate customs territory.” It further states that the
such as lost travel documents, are handled by PRC
HKSAR “may establish mutually beneficial economic
embassies or consulates.
relations with the United Kingdom and other countries, and
that “[u]sing the name of ‘Hong Kong, China

,’ the Hong
Kong Special Administrative Region may on its own

maintain and develop economic and cultural relations and
HKETOs in the United States
conclude relevant agreements with states, regions and
relevant inter-national organisations.” For example, Hong
U.S. policy toward Hong Kong is guided by the United
States-Hong Kong Policy Act of 1992 (USHKPA; P.L. 102-
Kong maintains its status as an independent member of the
WTO as a customs territory, with its own vote and group
383). The USHKPA states that, as a matter of policy, the
memberships nominally separate from those of Beijing.
United States “should invite Hong Kong to maintain [ ... ]
its official and semi-official missions in the United States,
Role of HKETOs
such as the [HKETO]” and the Office of the Hong Kong
According to the HKSAR’s official 2021 Yearbook,
Trade Development Council (HKTDC), a statutory body
HKETOs “promote Hong Kong’s economic and trade
established by the Government of the HKSAR to promote,
interests [ ... ] by enhancing understanding of Hong Kong
assist, and develop trade. The USHKPA further states, “the
among opinion-formers, monitoring developments that may
United States should invite Hong Kong to open and
affect Hong Kong’s economic and trade interests, and
maintain other official or semi-official missions to represent
liaising with government bodies, politicians, businesses,
Hong Kong in those areas in which Hong Kong is entitled
think tanks and the media.” Each HKETO is headed by a
to maintain relations on its own, including economic, trade,
financial, monetary, aviation, shipping, communications,”
director, appointed by the HKSAR Government from its
and more. Prior to the PRC’s imposition of a
civil service. In the United States, the HKSAR has
NSL on Hong
HKETOs in New York, San Francisco, and Washington,
Kong in 2020, the HKSAR and the United States
maintained various bilateral agreements on issues ranging
D.C. The Hong Kong Commissioner to the United States
serves as the most senior representative of the HKSAR and
from counternarcotics cooperation to international tax
oversees the work of the three offices.
compliance.
https://crsreports.congress.gov

Hong Kong Economic and Trade Offices
In the United States, HKETOs enjoy privileges,
As the PRC Central Government has diminished Hong
exemptions, and immunities provided by the International
Kong’s autonomy, observers including Hong Kong
Organizations Immunities Act (P.L. 79-291) and Article I
democracy activists and Members of Congress have also
of the Agreement on State and Local Taxation of Foreign
criticized partnerships between HKETOs and U.S. public
Employees of Public International Organizations (T.I.A.S.
entities, including the Smithsonian’s National Museum of
12135). President Bill Clinton extended these privileges in
Asian Art, which announced in January 2023 that it
1997 via an Executive Order on Hong Kong Economic and
intended to terminate its partnership with HKETOs. The
Trade Offices (E.O. 13052), which Congress explicitly
Smithsonian Institution is a trust instrumentality of the
authorized in P.L. 105-22. Privileges enjoyed by HKETOs
United States created by Congress in 1846; six Members
include the capacity to acquire and dispose of real and
serve on its administrative Board of Regents.
personal property, immunity from suit and every form of
judicial process “as is enjoyed by foreign governments,”
Issues for Congress
and immunity to search.
Some stakeholders argue that in light of the PRC Central
Government’s increasingly direct influence over the
Hong Kong’s Status and the HKETOs
HKSAR, including the imposition of the NSL, HKETOs
According to the USHKPA, Hong Kong will continue to
should cease functioning as entities autonomous from the
receive differential treatment under U.S. law “unless
PRC’s foreign missions. The Hong Kong Human Rights
otherwise expressly provided by law or by Executive order
and Democracy Act (HKHRDA, P.L. 116-76) amended the
under section 202” of the USHKPA. Some U.S. policy
USHKPA to direct the Secretary of State to certify
makers have sought to reconsider the HKSAR’s differential
“whether Hong Kong continues to warrant treatment under
status under U.S. law (and the question of Hong Kong’s
United States law” as “applied to Hong Kong before July 1,
autonomy vis-a-vis the PRC) following the May 2020
1997.” It also made it U.S. policy “to support the high
decision by China’s legislature, the National People’s
degree of autonomy and fundamental rights and freedoms
Congress (NPC), to impose the NSL on Hong Kong.
of the people of Hong Kong” and “to urge the Government
of the [PRC] to uphold its commitments to Hong Kong,
On May 27, 2020, then-Secretary of State Mike Pompeo
including allowing the people of Hong Kong to govern
certified to Congress that Hong Kong “does not continue to
Hong Kong with a high degree of autonomy and without
warrant treatment under United States laws in the same
undue interference.”
manner as U.S. laws were applied to Hong Kong before
July 1997.” The Department of State upheld this assessment
Following the United States’ suspension of Hong Kong’s
in 2021 and 2022 reports mandated by the USHKPA, as
special and differential trade status with regard to U.S. trade
amended by the Hong Kong Human Rights and Democracy
law, several Members of Congress have questioned
Act of 2019.
allowing Hong Kong to maintain a separate economic and
trade office in the United States, arguing that Hong Kong is
On July 14, 2020, then-President Donald Trump issued an
not sufficiently autonomous to separate its economic and
Executive Order on Hong Kong Normalization (E.O.
diplomatic policies from those of the PRC. In the 117th
13936). E.O. 13936 determined that the HKSAR “is no
Congress, S. 5253, and its companion bill H.R. 9561, would
longer sufficiently autonomous to justify differential
have required the President to rescind the privileges,
treatment in relation to the [PRC]” and set out U.S. policy
exemptions, and immunities granted to the HKETOs, so
to “suspend or eliminate different and preferential treatment
long as Hong Kong does not enjoy a “high degree of
for Hong Kong to the extent permitted by law and in the
autonomy” from the PRC.
national security, foreign policy, and economic interest of
the United States.” The E.O. suspended Hong Kong’s
Some Members have also expressed concerns that Hong
differential treatment under a number of statutes, including
Kong’s separate representation in the United States for
Section 103 of the Immigration Act of 1990, the Arms
commercial purposes could be an alternative means for the
Export Control Act, and section 721(m) of the Defense
PRC government and Communist Party of China to interact
Production Act of 1950, and ordered the agency heads “to
with the U.S. business community. The HKETO has played
commence all appropriate actions to further the purposes”
an active role in promoting economic and trade initiatives
of the order.
of the PRC central government, such as the Greater Bay
Area, a special economic zone encompassing Hong Kong
HKETOs and Foreign Influence
and parts of southern mainland China.
U.S. media reports have scrutinized HKETOs’ influence in
the United States. Some reports have focused on HKETOs’
Congress may assess the Department of Justice’s oversight
compliance with the Foreign Agent Registration Act
and capacity to monitor HKETOs’ compliance with statutes
(FARA), which requires certain agents of foreign principals
regarding the activities of foreign government entities, and
“who are engaged in political activities” to make periodic
particularly FARA.
public disclosure of their relationship, as well as “activities,
receipts, and disbursements in support of those activities.”
Ricardo Barrios, Analyst in Asian Affairs
Some reports have specifically drawn attention to a series
Michael D. Sutherland, Analyst in International Trade and
of filings made between 2009 and 2019 in which registrants
stated that they would “report to and be instructed by” the
Finance
HKETO in Washington, DC, despite listing the HKTDC
IF12313
and not the HKETO as their foreign principal.
https://crsreports.congress.gov

Hong Kong Economic and Trade Offices

Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.

https://crsreports.congress.gov | IF12313 · VERSION 1 · NEW