Hong Kong’s National Security Law and its Potential Impact on Foreign Entities

The new national security law a legislation under Article 23 has been passed in Hong Kong Parliament. This is the second in a row of national security laws since 2020. The legal personnel has feared that the new law shall broaden the scope of defining sedition and state secrets, with tougher penalties for anyone under conviction. The new law encompasses treason, espionage and external interference is being closely watched by foreign businesses. Notably, the most serious offences are sometimes punishable with life imprisonment, convicted of involvement with ‘external forces’.