Hong Kong Business News

The Hong Kong Special Administrative Region Government today rejected the misleading and untruthful remarks on Hong Kong's legal system and business environment in the so-called updated "business advisory" issued by various departments of the US government which tried to create panic.

It said in a statement that it is necessary to make clarifications to set the record straight.

The Hong Kong SAR Government said the successful implementation of the laws relevant to safeguarding national security in the city has brought about a stable and safe environment conducive to business and investment.

Under “one country, two systems”, the rule of law in Hong Kong is strong and robust, with the common law system aligning with major global financial hubs, it added.

The statement pointed out that Hong Kong ranked fifth in global competitiveness this year, and its foreign direct investment inflow was the fourth largest in the world last year. Hong Kong was also the world's 10th largest trading entity in merchandise trade.

These objective facts are the best evidence that high-level security guarantees high-quality development, and cannot be altered by a so-called “business advisory” issued by the governments of some countries, the statement added.

The Hong Kong SAR Government noted that it is each and every sovereign state's inherent right to enact laws safeguarding national security, and it is also an international practice.

The offences endangering national security stipulated by the Hong Kong National Security Law (NSL) and the Safeguarding National Security Ordinance (SNSO) target acts endangering national security with precision, and define the elements and penalties of the offences with clarity.

The statement outlined that Hong Kong SAR law enforcement agencies have been taking law enforcement actions based on evidence and strictly in accordance with the law in respect of the acts of the persons or entities concerned, which have nothing to do with their political stance, background or occupation.

The prosecution has the burden to prove beyond reasonable doubt that the defendant had the actus reus and mens rea of an offence before the defendant may be convicted by the court.

It also made it clear that the laws and work relevant to safeguarding national security in the city will not affect normal business operations and local institutions, organisations and individuals that engage in normal exchanges worldwide.

Law-abiding persons will not engage in acts and activities endangering national security and will not unwittingly violate the law, the statement said.

The Hong Kong SAR Government also said the extraterritorial effect for the offences endangering national security under the NSL and the SNSO fully aligns with the principles of international law, international practice and common practice adopted in various countries and regions.

It is both necessary and legitimate, and is also in line with those of other countries and regions around the world. It can be seen that the national security laws of various countries also have extraterritorial effect under the “personality principle” and the “protective principle”, the Hong Kong SAR Government added.

As a matter of fact, during the public consultation of the Basic Law Article 23 legislation, 98.6% of the submissions of opinions showed support and gave positive comments, reflecting a strong consensus in society for the legislation, and it is also the people’s aspiration.

After the SNSO was passed by the Legislative Council unanimously, members of the public and various sectors of the community, including the commercial sector and major chambers of commerce, the legal sector, real estate association, the youth sector, other professional sectors and political parties, welcomed and voiced support for the legislation, the statement said.

According to a survey conducted by a major foreign chamber of commerce early this year, almost 80% of its members interviewed expressed confidence in Hong Kong's rule of law, and almost 70% expressed that their operations had not been impacted by the NSL.

Meanwhile, another major foreign chamber of commerce's survey released last month revealed that business confidence in Hong Kong almost matched the pre-COVID-19 level.

The Hong Kong SAR Government pointed out that business communities from different countries have recognised the city’s advantages and have been enthusiastic about doing business here, as is evident by their continuous significant direct investments made in Hong Kong after the implementation of legislation of the NSL and SNSO.

Invest Hong Kong has completed 358 projects in the first seven months this year, representing a substantial 40% increase as compared with that in the same period last year. Among them, 32 completed projects were from the US, which was ranked at the third place.

In addition, according to the Report on Annual Survey of Companies in Hong Kong with Parent Companies Located outside Hong Kong, the number of companies stationed in Hong Kong exceeded 9,000 again in 2023 and the US was also ranked at third place, with 1,273 companies.

All in all, the cornerstone of Hong Kong's success remains intact, the Hong Kong SAR Government said.

It urges the US government to stop making false and baseless accusations about the situation in Hong Kong and trying to create panic by issuing the so-called “business advisory” to US companies and individuals operating in Hong Kong.

As a free and open international city, Hong Kong continues to welcome overseas companies, including American companies, to make full use of the business opportunities introduced by Hong Kong and the Guangdong-Hong Kong-Macao Greater Bay Area, to set up offices in Hong Kong, and take the city as their regional headquarters or regional offices.

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