Article 23: China’s tightening grip over Hong Kong

Last week, Hong Kong passed Article 23, a security law which criminalises treason, sedition, theft of state secrets, espionage, insurrection, and external interference. Hong Kong’s leader has claimed the law is necessary to protect against “potential sabotage and undercurrents that try to create troubles.”

Article 23 expands on the highly controversial National Security Law (NSL) that was imposed by Beijing in 2020 in response to pro-democracy protests in Hong Kong the previous year. The NSL criminalised a wide range of dissenting acts, such as subversion and secession. As with the NSL, those found guilty of breaching Article 23 could be sentenced to life imprisonment.

Widespread concerns

There are widespread concerns that Article 23 will undermine people’s human rights, severely limiting the civil liberties of Hong Kong’s citizens. The government now has even more power to suppress dissidents, with Hong Kong’s justice minister warning that you could, for example, get penalised for sedition by simply sharing or posting criticism of the new law online.

Furthermore, there are concerns over the broad definitions used in Article 23. For example, significant emphasis is placed on collaborating with external or foreign forces, however, there is little clarity over what constitutes an external force. Similarly, definitions around state secrets and espionage remain unclear.

As such, authorities can easily manipulate the vague definitions, framing and charging people under the new law for a wide range of acts. As such, it has instilled a sense of fear in many citizens and has been criticised by some foreign governments for bringing in “a new era of authoritarianism.”

Potential impact for businesses

As mentioned, a major focus of Article 23 is the protection of national security, as well as targeting acts of colluding with external or foreign forces. Under these new laws, businesses in Hong Kong may be reluctant to continue working closely with foreign organisations for fear of being prosecuted. Hong Kong will likely lose its competitive economic edge, as a vibrant market economy cannot survive without the free flow of information.

For foreign capital and businesses operating in the city, the law could increase compliance costs due to its broad language and severe penalties for non-compliance. Many multinationals have reportedly already moved out of Hong Kong since the NSL was introduced, driven by concerns over the safety of their workers under the new laws. These concerns will only be exacerbated by Article 23.

Furthermore, the law displays a tightening of China’s grip over Hong Kong, which is likely to deter Western investors.