China’s top legislative body will take the first steps toward imposing an anti-sanctions law on Hong Kong, local media reported, a move that could create complications for multinationals caught in rising tensions between Washington and Beijing.

The National People’s Congress Standing Committee will add the legislation to Hong Kong’s Basic Law next month, media including the South China Morning Post newspaper reported Wednesday, citing people they didn’t identify. The state-run Xinhua News Agency said Tuesday that the body would consider adding national laws to the annexes of the charters of both Hong Kong and Macau during a closed-door session Aug. 17-20, without specifying what legislation was under discussion.

The move follows the NPC’s passage of an anti-sanctions law last month that gives the Chinese government broad powers to seize assets from and deny visas to those who formulate or implement sanctions against the country. It also empowers individuals and companies to sue "individuals and organizations” to seek compensation for discriminatory practices in Chinese courts.