Hong Kong national security law: how will it affect businesses? Uncertainty over overseas funds, foreign offices
- Commerce chambers warn companies to tread carefully, with lawmaker advising operators to adopt wait-and-see approach
- Concerns centre on operations such as dealings with foreign branches or entities, with penalties ranging from fines to confiscation of funds
Business chambers in Hong Kong have warned more than a million companies of the dangers of breaching the national security law, with penalties ranging from fines to having funds confiscated.
The law, aimed at banning secession, subversion, terrorist activities and collusion with foreign forces to endanger national security, took effect on Tuesday and applies to 1.38 million registered companies in the city. The legislation’s reach extends beyond Hong Kong.
“Companies must pay extra attention to the new rules of the game and tread carefully,” Joe Chau Kwok-ming, president of the Hong Kong General Chamber of Small and Medium Business said on Thursday. “They may step on land mines without realising it.”
He added that the chamber supported the law, and that he believed it would help curb social unrest.
Whether [companies dealing with foreign entities] will fall into legal traps, we cannot be sure for now. And should I take any interviews with the foreign press?
Promulgated an hour to midnight on June 30, the new legislation stipulates that a company or organisation in violation will be liable to a criminal fine, having its operations suspended or business permit revoked.