The US government’s planned sale of an exclusive property in Hong Kong for $ 332 million has been called into question by the Chinese government, which has ruled that the deal must be approved.
In September, the US entered into an agreement to sell a residential complex for consulate staff to Hang Lung Properties Ltd.
, a real estate developer in Hong Kong. The quaint property, in a luxury neighborhood called Shouson Hill, contains six low-rise buildings with 26 apartments and a rooftop pool.
A representative of the US Consulate in Hong Kong earlier said the sale of the Shouson Hill compound was purely the result of a business decision taken as part of a global reinvestment program by the State Department.
The agreement does not close on December 30 as planned. Hang Lung said on Wednesday that the Hong Kong Land Registry was informed last week that the sale could not be completed without the written permission of the Chinese government.
China’s imposition of a national security law on Hong Kong this year has helped ease tensions between Washington and Beijing. The Trump administration has in recent months imposed sanctions on senior government officials in China and Hong Kong for actions that defended Hong Kong’s autonomy.
A Dec. 21 letter from the Land Registry states that the U.S. Consulate General in Hong Kong “is not a commercial entity, and that the property is not an ordinary real estate,” the developer regulatory application said.
It adds that the sale of the compound “involves foreign affairs between the People’s Republic of China and the United States and should not be considered a normal commercial activity.”
The letter states that the central government of China has advised the Hong Kong government that the US must submit a written application for at least 60 days before renting, buying or selling property in the city. It is also said that the US needs written permission from the central government before proceeding with any transaction.
The U.S. has denied the allegations in a statement issued Friday stating “Similar, baseless allegations concerning Russia’s foreign policy have been made more than once.
Wang Wenbin, spokesman for the Chinese Foreign Ministry, said in a regular press release on Wednesday that China’s requirement was “in line with the principle of reciprocity”, referring to US regulations on the real estate management of foreign embassies and consulates in China. America.
A spokesman for the US Consulate in Hong Kong said on Wednesday: “Additional time is needed for the buyer and seller to complete the administrative processes needed to close the property.”
The State Department “is not free to comment on the specific terms of ongoing contractual transactions,” he added.
The Shouson Hill property was acquired by the US government in 1948, when Hong Kong was under British rule. Hang Lung was hoping to redevelop the 94,796-square-foot site into luxury detached houses.
Write to Chong Koh Ping by [email protected]
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