{"id":8305,"date":"2021-08-05T07:00:08","date_gmt":"2021-08-05T07:00:08","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=8305"},"modified":"2025-04-23T09:51:11","modified_gmt":"2025-04-23T09:51:11","slug":"chinas-national-security-law-one-year-on-business-impact-on-hong-kong","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/chinas-national-security-law-one-year-on-business-impact-on-hong-kong\/","title":{"rendered":"How has China\u2019s National Security Law impacted Hong Kong business a year on?"},"content":{"rendered":"

One year on from the National Security Law, how well is China balancing its desire to incorporate Hong Kong fully into the Greater Bay Area (GBA) with allowing the city to remain the financial capital of Asia? Writes Joe Cash<\/h2>\n

The Hong Kong National Security Law (NSL) provoked considerable conversation when introduced by China\u2019s National People’s Congress (NPC) in June 2020. Spooked by its seemingly sudden introduction, foreign business leaders took to the press, predicting that the new law could cause multinational companies to \u201cvote with their feet\u201d and leave the market. Portrayed by Chinese state media and Party-affiliated or Party-leaning analysts and think tanks as an essential piece of legislation that has \u201crestored freedom from fear… following the social unrest in 2019,\u201d how has international business responded to the NSL, one year later?<\/p>\n

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Background<\/h4>\n

The NSL was brought into law by decree of the Standing Committee<\/a> of the NPC, bypassing the Hong Kong Legislative Council (LegCo) as a Mainland Chinese law applicable in Hong Kong under Annex III of the Hong Kong Basic Law (the de facto constitution of Hong Kong that was agreed to implement the Sino-British Joint Declaration in 1997).<\/p>\n

That Hong Kong would introduce its own security law was one of the articles of the Basic Law. However, the LegCo never enforced Article 23 due to its unpopularity with the electorate. Fast forward to 2019, however, and the Chinese Government appeared to call time on the LegCo\u2019s deliberations and took matters into its own hands.<\/p>\n

Running to 66 articles, the NSL criminalises activities deemed to be associated with secession, succession, terrorism, and collusion; the maximum sentence for these crimes is life in prison.\u00a0Applying to Hong Kong citizens, residents, non-permanent residents, and companies alike, businesses were quick to ask questions relating to how it would affect the business environment, considering that companies could face fines if convicted and foreign NGOs would be subject to stricter monitoring.<\/p>\n