Hong Kong: new national security law - An impact on the country's economic life?

Hong Kong: new national security law - An impact on the country's economic life?

Hong Kong's new national security law, "本條例旨在完善中華人民共和國香港特別行政區維護國家安全的法律" ("Ordinance to Improve Legislation for Safeguarding National Security in the Hong Kong Special Administrative Region of the People's Republic of China and to Provide for Related Matters") came into force on relating to the safeguarding of national security in the Hong Kong Special Administrative Region of the People's Republic of China and to provide for related matters") came into force on March 23, 2024. 

It reinforces the repressive arsenal and complements the National Security Law imposed by Beijing in 2020 by criminalizing anything considered to be secession (breaking away from China), subversion (undermining the power or authority of the central government), terrorism, or collusion with foreign or external forces. These four crimes now carry a maximum sentence of life imprisonment.

Other noteworthy provisions include:

  • The possibility of sending certain cases back to mainland China for trial: as it stands, this mechanism would be limited to all matters affecting the integrity of the nation;
  • The creation of a national security commission to enforce security laws;
  • The creation of a general principle stipulating that the interpretation of certain rules is a matter for Beijing alone, and not for the Hong Kong judiciary: as it stands, this power would be limited to offences against national security;
  • The predominance of Chinese law in the event of a conflict with Hong Kong law;
  • Extending the number of cases where the trial will be held in camera;
  • Companies can be fined if found guilty of breaches of national security (amounts can run into millions of Hong Kong dollars).

A general question remains as to the real scope of this law. The notion of national security is defined as anything relating to "the political system, sovereignty, unity and territorial integrity of the State, the well-being of the population, sustainable economic and social development and other major interests of the State". This definition could therefore encompass certain economic aspects of life in Hong Kong. 

It remains to be seen how this rule will be implemented by local jurisdictions.

Please note that these rules will also apply to non-permanent residents and non-Hong Kong residents who are not permanent residents of Hong Kong.

Please do not hesitate to contact us for further information.

Associate lawyer