WASHINGTON (BLOOMBERG) – President Joe Biden said his administration will issue an advisory cautioning US companies about the risks of doing business in Hong Kong because of “what may happen” as China continues to tighten its control over the island.

“The situation in Hong Kong is deteriorating and the Chinese government is not keeping its commitment that it made, how it would deal with Hong Kong,” Biden said at a news conference alongside German Chancellor Angela Merkel at the White House on Thursday (July 15).

“It is more of an advisory as to what may happen in Hong Kong,” Biden added. “It’s as simple as that, and as complicated as that.” The advisory is expected to be issued on Friday.

It will underscore how swiftly China’s push for more control over Hong Kong has brought an end to the “one country, two systems” approach that Beijing had promised when it took back control of the former British colony in 1997.

That’s proved a death knell for the island’s independent judiciary, pugnacious media and lively protest movements.

While the advisory won’t order companies to scale back investments or leave Hong Kong, Biden administration officials worry that major banks and other multinational businesses with headquarters in the city haven’t yet come to grips with just how much the landscape there has changed and how much risk they now face.

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