The United States has issued a stern warning to businesses operating in Hong Kong, highlighting the growing risks posed by the city’s new national security regulations. The advisory, which updates a 2021 document, expresses concerns that even routine business activities could be interpreted as violations under the ambiguous language of the new laws.
The warning comes as a result of China’s ongoing crackdown on dissent in Hong Kong following the pro-democracy protests of 2019. In March 2023, Hong Kong’s legislature, now dominated by pro-Beijing figures, passed an ordinance that carries a life sentence for offenses including treason and insurrection. This ordinance, known as Article 23, is seen as a further tightening of controls over the territory.
The US State Department, along with other government agencies, raised specific concerns about the potential for routine activities to be considered violations under Article 23. These activities include research into government policies, maintaining connections with local officials, journalists, and non-governmental organizations. The advisory also notes a narrowing gap between Hong Kong and mainland China in terms of legal practices, suggesting that Hong Kong’s new laws mirror those used in mainland China, where authorities have broad discretion to define state secrets and detain foreign nationals for alleged espionage.
Since the implementation of the initial security law in 2020, over 300 individuals have been arrested, including one US citizen. Hong Kong’s second-in-command, Eric Chan, has dismissed the US advisory as an attempt to hinder China’s rise and insists that national security cases are handled fairly. He asserted that no businesspeople have been unjustly arrested and labeled the US warning as intimidation aimed at deterring potential investors.
The US has repeatedly criticized Beijing’s security regulations, arguing that they threaten the very openness that enabled Hong Kong to thrive as a global financial hub. Hong Kong’s Chief Executive, John Lee, has defended the new ordinance, arguing that it is necessary to prevent further violence in the wake of the 2019 protests. However, critics argue that these laws represent a further erosion of Hong Kong’s autonomy and democratic freedoms.
The US advisory serves as a stark reminder of the increasingly volatile situation in Hong Kong and the potential consequences for businesses operating within the city. The ambiguous nature of the new national security laws creates a climate of uncertainty and risk, raising concerns for businesses seeking to navigate the evolving political and legal landscape in Hong Kong.
