Benzinga | Jul 28, 2021 08:33AM EDT

UPDATE: Dow Jones Reports Indicate New Hong Kong And Macau Laws Could 'bar foreign entities and individuals in the cities from complying with sanctions against China'

China's government is planning to introduce new laws in Hong Kong and

Macau that could bar foreign entities and individuals in the cities from

complying with sanctions against China, according to people familiar with

the discussions.

The new laws are expected to mirror China's own "antiforeign sanctions

law," which Beijing rushed through in June in response to sanctions imposed

on the country by the U.S. and Europe, the people said.

China's official Xinhua News Agency reported on Tuesday that the

country's legislature was scheduled to add provisions to the

mini-constitutions of Hong Kong and Macau during a four-day session

beginning Aug. 17, though it didn't specify what changes would be made.

The introduction of the law in the two Chinese territories, especially in

the financial hub of Hong Kong, could leave many companies and their

employees caught in the middle as China and the U.S. clash over the future

of the former British colony.