Fears grow for Hong Kong's finance hub status under proposed security law

HONG KONG, China — As Hong Kong fast-tracks a new national security law, the legislation and questions about its implementation have raised fears among the business community.

The draft bill, introduced at the city's legislature on Friday, includes major offences such as treason and insurrection, which could be punished with life imprisonment.

The government has said it intends to pass the bill as soon as possible to plug legislative gaps left by an existing national security law imposed on Hong Kong by Beijing in 2020 after the finance hub saw massive pro-democracy protests.

Authorities also say it is their constitutional responsibility to enact homegrown national security legislation according to Hong Kong's Basic Law -- a mini-constitution governing the city since it was handed back to China from Britain in 1997.

But the city is entering "untested, uncharted waters" with the proposed law, said Kristian Odebjer, chairman of the Swedish Chamber of Commerce in Hong Kong, speaking to AFP before the draft bill was unveiled.

Its offences include treason, insurrection, espionage and theft of state secrets, sabotaging national security, and external interference.

But the definitions are "vague", said Odebjer, particularly for the theft of state secrets -- which, according to the draft bill, includes defence intelligence but also encompasses information about the city's economic, social and technological developments.

"This could have a negative impact on... activities that some of our members engage in like research and due diligence activities," Odebjer told AFP.

These activities "contribute to, or are necessary even, for a functioning financial centre and a market economy like Hong Kong", he said.

However, city leader John Lee, a Beijing-picked ex-security chief sanctioned by the United States, said the proposed national security law -- known as Article 23 -- would act as "an effective lock to prevent burglars".

It will exist alongside the Beijing-imposed national security law, which covers four major crimes: secession, subversion, terrorism and collusion with foreign forces.

AFP sought comments from members of the business and diplomatic communities during a