Foreign firms in Hong Kong review operations after Article 23 legislation, but insiders say changes already made following 2020 Beijing-imposed law
- Lawyers and consultants say bulk of major changes were made after the Beijing-imposed national security law took effect in 2020
- City and central authorities maintain the Article 23 domestic law will not disrupt overseas firms’ operations, but benefit the business environment
City and central authorities have reassured the international sector that the new legislation, mandated under Article 23 of the Basic Law, the city’s mini-constitution, would not disrupt their operations and would be beneficial to the city’s business environment.
But some companies are said to have remained concerned about the potential for unintentional breaches of the law, despite their preparation work.
Two insiders familiar with foreign business operations in Hong Kong told the Post that several firms had anticipated the legislation and some had already carried out additional reviews before the month-long public consultation period started at the end of January.
James Ellender, the Asia-Pacific managing director of risk consultancy firm Futurum Asia, said some of the company’s biggest clients had asked for employee screening and due diligence checks on suppliers since the third quarter of 2023.