US Warns of Increased Risks in Hong Kong Following Security Ordinance

US Government Agencies Raise Alarm Over Hong Kong's National Security Ordinance

On Friday, several US government agencies issued a strong warning regarding the new and heightened risks posed by Hong Kong's Safeguarding National Security Ordinance, adopted in March. This ordinance closely mirrors the national security law implemented by Beijing in 2020, potentially having profound effects on both businesses and individuals in the city.

Vaguely Defined Legal Provisions

The updated Hong Kong Business Advisory, first launched in 2021 and recently revised, raises alarms about vague provisions within the ordinance that criminalize actions related to state secrets and espionage. The advisory, a joint effort by the US Departments of State, Treasury, Commerce, Agriculture, and Homeland Security, emphasizes the extraterritorial application of the law, which might affect routine business activities and travel.

Increased Caution Advised 

• Travel Advisory Maintained: The State Department continues to advise travelers to exercise caution in Hong Kong.
• Bounties on Dissidents: Hong Kong law enforcement has issued bounties for pro-democracy figures living in exile.
• Human Rights Concerns: There are significant worries about the arbitrary enforcement of local laws.

Significant Legal Implications for Businesses

The advisory also points out that entities maintaining connections with local and international officials or conducting due diligence may find themselves at risk under the ordinance's ambiguous definitions. As noted, the law puts regular behaviors in jeopardy, casting a shadow over fundamental human rights and freedoms.

Impact on Business Operations

Companies operating in Hong Kong face serious privacy concerns, including electronic surveillance without warrants and potential data seizures. The actions that individuals take can lead to repercussions under the national security law, raising urgent questions about their everyday activities.