The U.S. should rethink its close ties with Hong Kong’s banking sector, leaders of an influential House committee say
3 min
Leading China hawks in the U.S. House of Representatives are calling for a rethink on whether Hong Kong should continue to enjoy the cozy banking relationship it has with the U.S., saying the city is becoming a hub for money-laundering and sanctions evasion.
Hong Kong has turned into a major centre for the export of controlled Western technology to Russia; the creation of front companies to buy Iranian oil; the managing of “ghost ships” that serve North Korea, as well as other violations of U.S. trade controls, the bipartisan leaders of the House Select Committee on the Chinese Communist Party said in a letter to Treasury Secretary Janet Yellen .
The letter was signed by Rep. John Moolenaar , a Michigan Republican who chairs the committee, and Rep. Raja Krishnamoorthi , an Illinois Democrat who is the committee’s ranking member. The Wall Street Journal reviewed a draft of the letter, which was publicly released Monday.
“Hong Kong has shifted from a trusted global financial centre to a critical player in the deepening authoritarian axis of the People’s Republic of China, Iran, Russia and North Korea,” the lawmakers said. “We must now question whether longstanding U.S. policy towards Hong Kong, particularly towards its financial and banking sector, is appropriate.”
The lawmakers cited research, for example, that shows that nearly 40% of goods shipped from Hong Kong to Russia in 2023 were high-priority items such as semiconductors that Russia could use to prosecute its war in Ukraine.
Both lawmakers have worked extensively in the past with President-elect Donald Trump ’s pick for secretary of state, Sen. Marco Rubio of Florida, on China-related issues, including efforts to force TikTok’s Chinese owners to sell the app.
The allegation that Hong Kong is a money-laundering hub is unfounded, a spokesman for the Hong Kong government said. The spokesman added that Hong Kong has a vigorous enforcement system to prevent the illegal diversion of strategic commodities. A representative for Yellen didn’t respond to a request for comment.
The two lawmakers, whose committee focuses on competition with China and frequently makes bipartisan calls for a tougher approach to the country, asked Treasury for information on how it intends to combat money-laundering and sanctions evasion that use Hong Kong’s financial system.
Hong Kong, which has a special status within China, has seen its role as a global financial hub increasingly come into question as Beijing has muscled the city closer into its orbit, driving an exodus of expatriates. U.S. officials in particular have condemned Hong Kong authorities’ crackdown on dissidents under a tough national security law, though many Western banks have continued to do some business there.
Last week, a court in Hong Kong sentenced dozens of pro-democracy advocates for what Communist Party leadership viewed as subversion under that law. The Biden administration has called for their immediate and unconditional release. The government of the Hong Kong special administrative region said attacks on the “fair and open” sentencing are smears.
The same day, a Hong Kong government-sponsored financial summit played host to a number of global financial leaders, including Goldman Sachs Chairman David Solomon , Citi Chief Executive Jane Fraser and State Street CEO Ronald O’Hanley , according to a program of the event. Leaders from HSBC , BNP Paribas and other institutions also attended.
Banking leaders didn’t publicly discuss the court proceedings on the summit’s panels. A spokesman for State Street confirmed O’Hanley’s attendance. A spokeswoman for Citi declined to comment. Representatives for the other banks didn’t respond to requests for comment.
Earlier this month, Moolenaar and Krishnamoorthi called on the Biden administration to sanction Hong Kong police, judges and prosecutors for their role in the arbitrary detentions of human-rights activists.
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The sports-car maker delivered 279,449 cars last year, down from 310,718 in 2024.
A long-standing cultural cruise and a new expedition-style offering will soon operate side by side in French Polynesia.
The sports-car maker delivered 279,449 cars last year, down from 310,718 in 2024.
2 min
Porsche car deliveries fell 10% in 2025 as demand was hit by a slowdown in luxury spending in China and as it ceased production of its 718 Boxster and 718 Cayman models through the year.
The German luxury sports-car maker said Friday that it delivered 279,449 cars in the year, down from 310,718 in 2024.
The company had a tumultuous year as it contended with a stuttering transition to electric vehicles and a tough Chinese market, while the Trump administration’s automotive tariffs presented a further headwind.
Deliveries in its largest sales region of North America were virtually flat at 86,229, but continued challenges in China meant deliveries in the country dropped 26% to 41,938 vehicles.
Automakers have faced intense competition in China, sparking a prolonged price war as rivals cut prices to win customers, while a lengthy property market slump and economic-growth concerns in the country has also led to buyers pulling back on luxury spending.
“Key reasons for the decline remain the challenging market conditions, particularly in the luxury segment, and the very intense competition in the Chinese market, especially for all-electric models,” the company said.
Other German brands including Audi, BMW and Mercedes-Benz have all recently reported that the challenging Chinese market hit demand last year.
In Europe, Porsche deliveries fell 13% to 66,340 cars excluding its home market of Germany, while German deliveries dropped 16%.
The company cut guidance several times last year as it warned of hits from U.S. import tariffs, investments in new combustion engines and hybrid models amid the slow uptake of EVs, and the competitive situation in China.
Porsche also last year announced plans to scale back its EV ambitions and instead expand its lineup with more gas-powered and plug-in hybrid models than it had originally planned.
However, in its statement Friday, the company said it increased its share of electrified-vehicle deliveries in the year. Around 34% of vehicles delivered worldwide were electrified, an increase of 7.4 percentage points on year, with about 22% all-electric vehicles and 12% plug-in hybrids.
That leaves its global share of fully-electric vehicles at the upper end of its target range of 20% to 22% for 2025.
In Europe, for the first time in 2025, more electrified vehicles than purely combustion engine vehicles were delivered.
The Macan topped the delivery charts in the year, while the 911 reached a record high with 51,583 deliveries worldwide, it said.
Porsche said it is investing in its three-pronged powertrain strategy and will continue to respond to increasing demand for personalization requests from customers.
“We have a clear focus for 2026,” Sales and Marketing Chief Matthias Becker said. “We want to manage supply and demand in accordance with our ‘value over volume’ strategy.
“At the same time, we are realistically planning our volume for 2026 following the end of production of the 718 and Macan with combustion engines.”
