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Explainer | How should businesses navigate Hong Kong’s Article 23 law? The Post seeks out corporate lawyers for answers
- Safeguarding National Security Ordinance has prompted concerns from some foreign investors over its possible implications, even as officials stress its stabilising impact
- Some corporate lawyers say foreign firms have already taken measures in response to earlier Beijing-imposed law, with others suggesting companies may look elsewhere
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Hong Kong is in uncharted waters after enacting a domestic national security law to fulfil a constitutional obligation, with some foreign companies adopting a wait-and-see approach and others reviewing their practices in light of the legislation.
The new legislation is required under Article 23 of the Basic Law, the city’s mini-constitution, and covers 39 offences divided into five categories: treason; insurrection, incitement to mutiny and disaffection, and acts with seditious intent; sabotage; external interference endangering national security; and theft of state secrets and espionage.
While Beijing and local authorities have repeatedly emphasised the sweeping Safeguarding National Security Ordinance will help ensure Hong Kong’s stability and prosperity, some foreign investors earlier raised concerns over the legislation and its implications, which remain unclear at present.
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The Post talks to several international corporate lawyers about how businesses can cope with the new law.
1. Should businesses adjust the way they operate?
It depends on whom you ask. Hong Kong officials have reassured chambers of commerce that businesses will not need to conduct extra compliance checks, as it will be difficult for them to accidentally run afoul of national security offences.
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