Biden aims to punish China over Hong Kong: sources

The United States is preparing to impose sanctions on Friday on a number of Chinese officials over Beijing's crackdown on democracy in Hong Kong, as well as a warning to international businesses operating there about deteriorating conditions, two people with knowledge of the situation told Reuters.

Gloria Tso reports.

The U.S. is set to slap sanctions on Chinese officials Friday over what President Joe Biden called the "deteriorating" situation in Hong Kong.

That's according to two sources familiar with the matter.

It's the Biden administration's latest plan to hold China accountable for its crackdown on the former British colony, and is certain to anger Beijing.

The sources said the financial sanctions would target seven officials from China's Hong Kong liaison office, which projects Beijing's influence into the Chinese territory.

A separate advisory issued by the State Department would highlight U.S. government concerns about the impact of Hong Kong's national security law on international companies.

Critics say Beijing implemented that law last year to facilitate a crackdown on pro-democracy activists and press freedom.

Both sources said the measures were still subject to change.

One said the White House was also reviewing a possible executive order on immigration from Hong Kong, but nothing was certain just yet.

The U.S. Treasury Department has declined to comment on the issue following media reports this week about possible new sanctions.

Meanwhile, a visit to China by the State Department's No.

2 official Wendy Sherman appears to have been cancelled.

The State Department also warned businesses on Tuesday about the growing risks of supply chain and investment links to China's Xinjiang region, citing evidence of forced labor and human rights abuses.