In a tirade against China, Mr Pompeo said: "You can't threaten countries and bully them in the Himalayas, you can't engage in cover ups and co-op global institutions like the World Health Organisation".
Pompeo offered no evidence of how China had exploited COVID-19.
As a result, he said, the government would suspend the extradition treaty and extend an arms embargo to Hong Kong that has applied to mainland China since 1989, when troops killed hundreds of protesters as they quashed a student-led democracy movement in Beijing.
"The CCP's exploitation of this disaster to further its own interests has been disgraceful", Pompeo said Tuesday.
A Downing Street spokeswoman said the Prime Minister emphasised the need for justice to be done for Mr Dunn in a meeting with Mr Pompeo, adding: 'He said there was a strong feeling among the people of the United Kingdom that justice must be delivered'.
Beijing says the West - and Washington in particular - is gripped by anti-Chinese hysteria and colonial thinking about the communist state.
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Events in Hong Kong are particularly sensitive for Britain because China agreed to a "one country, two systems" policy meant to protect the economic and social traditions of the territory for 50 years after the handover. Pro-democracy activist Nathan Law Kwun-chung said on Twitter last week that he had arrived in London, leaving Hong Kong due to the security law.
"We want every nation to work against that kind of activity".
Diplomatic ties between London and Beijing have been frayed by the security law, which Western powers see as an erosion on civil liberties and human rights in the financial hub.
U.K. -China relations have become strained with the recent passing of new security laws in Hong Kong, which vastly extended China's reach into the once semi-autonomous territory. The government cited Chan's case as an example of the loophole the extradition legislation would close, allowing Hong Kong to transfer fugitives to any jurisdiction with which it did not have a treaty, including Taiwan and mainland China.
"The UK will bear the consequences if it insists on going down the wrong road", said a spokesman for the Chinese embassy.
Some Hong Kong wealth managers, however, are said to be anxious about the regulatory and reputation risks if the national security law is used to bring charges against their politically linked clients.
"We're going to be tough on some things but also continue to engage (with China) on others".
He continued: "The special relationship, you can see it on days like today where it translates into having candid, frank discussions on important matters which really cut to the heart of how we can work together to secure freedom for our peoples in each of our two countries and both of our countries be forces for good together around the world".