HSBC executive apologises for criticising UK over China policy

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HSBC’s head of public affairs has apologised for saying the UK government had been “weak” by giving in to US pressure to cut back on its dealings with China. 

Sherard Cowper-Coles, a former British ambassador who also chairs the lobby group the China-British Business Council, made the comments at a private event in London in June, Bloomberg News reported. He said the UK should follow its own interests rather than simply accept the US’s position.

The comments illustrate the difficulty that HSBC faces as it attempts to straddle east and west at a time of rising geopolitical tension. The bank is based in London, makes most of its money in Hong Kong and China, and depends on the US for its dollar clearing licence, which underpins its huge global trade financing business.

“I was speaking at a private event under [the] Chatham House Rule and my personal comments don’t reflect the views of HSBC or the China Britain Business Council,” Cowper-Coles said in a statement. “I apologise for any offence caused.” The bank said he was at a private event and was sharing his personal views. 

It comes as the US is increasing restrictions on business with China, including working on plans for a mechanism to screen investments in Chinese entities involved in areas that could help the country’s military, and bringing in export controls that make it harder for US companies to sell semiconductors to China. Beijing’s ambassador to Washington has warned of retaliatory measures. 

HSBC has previously been caught up in tensions between China and the west. It was criticised in China for providing information to US prosecutors that led to the arrest of Meng Wanzhou, Huawei’s chief financial officer, in 2018. 

Support for Hong Kong’s national security law from the bank’s Chinese executives has also attracted criticism from politicians in the UK and the US. And in June, China hawks in London and Washington accused the bank of oppressing Hongkongers over their pension rights. 

Cowper-Coles is not the first HSBC executive to attract attention with controversial comments. Last year, Stuart Kirk resigned as HSBC Asset Management’s head of responsible investing after accusing policymakers of overstating the financial risks of climate change.