Company: KPEA
Filing Date: 2025-01-14
Form Type: 10-K
Source: 0001493152-25-002124
Chunk: 497

Company: Kun Peng International Ltd.
Filing Date: 2025-01-14
Form: 10-K
Item: Item 1
Chunk 497
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 tariffs both globally and between the U.S. and China specifically carries the risk of negatively affecting China’s
overall economic condition, which could have a negative impact on us.

Trade
tensions and policy changes have also led to measures that could have adverse effects on China-based issuers, including proposed legislation
in the United States that would require listed companies whose audit reports and/or auditors who are subject to review by PCAOB to be
subject to enhanced disclosure obligations and be subject to delisting if they do not comply with the requirements.

The
enactment of the Law of the PRC on Safeguarding National Security in the Hong Kong Special Administrative Region (the “Hong Kong
National Security Law”) could impact our Hong Kong subsidiaries, and the market price for our shares could be adversely affected
by increased tensions between the United States and China.

Recently
there have been heightened tensions in the economic and political relations between the United States and China. On June 30, 2020, the
Standing Committee of the PRC National People’s Congress issued the Law of the People’s Republic of China on Safeguarding
National Security in the Hong Kong Special Administrative Region (HKSAR). This law defines the duties and government bodies of the HKSAR
for safeguarding national security and four categories of offences-secession, subversion, terrorist activities, and collusion with a
foreign country or external elements to endanger national security-and their corresponding penalties. On July 14, 2020, U.S. President
Donald Trump signed the Hong Kong Autonomy Act, or HKAA, into law, authorizing the U.S. administration to impose blocking sanctions against
individuals and entities who are determined to have materially contributed to the erosion of Hong Kong’s autonomy. On August 7,
2020, the U.S. government imposed HKAA-authorized sanctions on eleven individuals, including HKSAR chief executive Carrie Lam. On October
14, 2020, the U.S. State Department submitted to relevant committees of Congress the report required under the HKAA, identifying persons
materially contributing to “the failure of the Government of China to meet its obligations under the Joint Declaration or the Basic
Law.” The HKAA further authorizes secondary sanctions, including the imposition of blocking sanctions, against foreign financial
institutions that knowingly conduct a significant transaction with foreign persons sanctioned under this authority. The imposition of
sanctions such as those provided in the HKAA is in practice discretionary and highly political, especially in a relationship as extensive