Hong Kong businesses see positive impact of national security law, worry most about foreign sanctions, chamber survey shows

More than 61 per cent believe the national security law will have positive impact on businesses in the long-run

Business sector opposes any sanctions as they may hurt both companies in Hong Kong and spread the pain overseas

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The Chinese flag flies outside the Liaison Office of the Central People's Government in the Sai Ying Pun district of Hong Kong. China is again taking steps to rein in Hong Kong's democracy advocates, drawing fresh condemnation from the US. Photo: Bloomberg

Published: 7:00pm, 1 Jun 2020Updated: 10:55pm, 4 Jun 2020

Hong Kong’s business community, backed by some of its famous billionaires, is upbeat on the benefits of a national security law for the city, according to an industry survey, while expressing concerns about foreign sanctions on their operations.

About 61 per cent of the respondents said the law will either have a positive or no impact at all on their businesses over the long term, according to the Hong Kong General Chamber of Commerce. Some 54 per cent of them viewed the legislation as “controversial” and hence will have a negative impact on their businesses in the short term, citing foreign sanctions as their biggest concern.

The chamber surveyed its 4,000-odd members last week as Beijing endorsed the legislation tailor-made for the city, of which 418 responded with answers. Since it was unveiled at the annual National People’s Congress on May 21, the proposal that seeks to bypass Hong Kong’s legislature has roiled the local stock market and further widened the rift in US-China ties.

China has introduced a national security law for Hong Kong as it claims the anti-government protests in the financial hub endanger the country. Photo: AP Photo

The US has since determined that Hong Kong has lost its autonomy from China, and President Donald Trump has threatened to withdraw Hong Kong’s special trade privileges and impose other unspecified sanctions. The Hang Seng Index jumped the most since March on Monday even as traders braced for more clarity from both sides of the controversy.

“The chamber calls for detailed provisions of the law and specific implementation measures to be announced as soon as possible to address the concerns stemming from the uncertainties,” said George Leung Siu-kay, chief executive of the chamber, an organisation founded in 1861.

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