Hong Kong plays leading role in sanctions evasion: report

New analysis spotlights Chinese city as transshipment hub of goods to sanctioned nations

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Hong Kong's regulatory environment makes it easy for foreign nationals to create shell companies to evade sanctions. © Reuters

PAK YIU, Nikkei staff writer

NEW YORK --The surge of Hong Kong shipments to Russia following Moscow's invasion of Ukraine in 2022 underscores the city's extensive role in helping U.S. adversaries avoid international sanctions, a new analysis published Monday by the Committee for Freedom in Hong Kong Foundation shows.

The 62-page report, "Beneath the Harbor: Hong Kong's Leading Role in Sanctions Evasion," outlines how Hong Kong companies have helped export goods that are under the U.S. and European Union's list of items -- known as Common High Priority Items -- highlighted as essential technology used by Russia's war machine.

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