Speeding Up the Enactment of the Hong Kong Security Law This Month... Japan Begins Full-Scale Engagement with Hong Kong

[Image source=AP Yonhap News]

[Asia Economy Beijing=Special Correspondent Sunmi Park] China's top legislative body plans to finalize the enactment of the Hong Kong National Security Law as early as this month. The Standing Committee of the National People's Congress (NPC) is convening an additional meeting from the 28th to the 30th, increasing the likelihood that the Hong Kong National Security Law will be enacted within this month. Japan views the enactment of the Hong Kong National Security Law as a potential trigger for global financial institutions to leave Hong Kong and has begun preparing measures to absorb these functions into Tokyo.

On the 22nd, China's Global Times reported that the NPC Standing Committee is highly likely to enact the Hong Kong National Security Law within this month. When the 20th meeting of the NPC Standing Committee is held in Beijing from the 28th to the 30th, the final review and voting procedures on the draft Hong Kong National Security Law may accompany the session. Although the Hong Kong National Security Law is not listed on the agenda for the scheduled meeting at the end of this month, since the law was brought to the discussion table just before the start of the 19th meeting, the dominant opinion within China is that the law will likely be included in the official agenda for this meeting as well.

Tan Yaozhong, a member of the NPC Standing Committee, said, "At the meeting at the end of this month, lawmakers are very likely to review and vote on the Hong Kong National Security Law," adding, "It would not be surprising to hold one more meeting for the prompt enactment of the law." In China, laws typically require three rounds of review before enactment, but in urgent cases, laws can be enacted after only one or two rounds of review and voting.

According to the draft of the Hong Kong National Security Law, which has completed its first review, the Chinese government may establish a central government national security agency in Hong Kong, namely the National Security Office. The Hong Kong National Security Office has the authority to analyze Hong Kong's security situation, propose opinions on security strategies and policy formulation, supervise, guide, and cooperate. The draft also specifies that the Chinese central government will establish a cooperative system with Hong Kong's judicial and law enforcement agencies.

Although Western countries, including the United States, still oppose the enactment of the Hong Kong National Security Law, movements to prepare countermeasures in response to the accelerated pace of the law's enactment have also been observed.

Japan has started preliminary work to absorb Hong Kong's global financial hub functions into Tokyo in case the enactment of the Hong Kong National Security Law weakens Hong Kong's role. Already, various ministries are considering providing visa exemptions, tax consultations, and free office space to fund managers, bankers, traders, and others coming from Hong Kong.

Under the participation of various Japanese government ministries, the annual economic strategy scheduled for publication next month aims to include detailed measures for Tokyo to absorb Hong Kong's financial experts and financial institutions. It is reported that by the end of this week, they plan to complete the selection of feasible measures. Among the measures currently under discussion are visa exemptions to allow more financial professionals to move from Hong Kong to Tokyo and the application of a fast track to promptly issue necessary licenses so they can start work immediately after relocating. There is also discussion about Tokyo directly providing office space to financial professionals so they can lease space long-term without separate rent.

Japan has long been striving to make Tokyo a competitor city to Hong Kong, and the enactment of the Hong Kong National Security Law is said to accelerate efforts to attract Hong Kong's financial experts and institutions to Tokyo. Satsuki Katayama, a member of Japan's Liberal Democratic Party, asked Prime Minister Shinzo Abe about measures to accept Hong Kong financial talents at the House of Councillors Budget Committee on the 11th, and Prime Minister Abe responded, "We will actively promote this."

Some global financial institutions are already considering Tokyo as an alternative to Hong Kong. Fidelity International has set a long-term goal of moving its trading desk from Hong Kong to Tokyo and recently decided to place some of its buy-side trading desks in Tokyo.

Within Hong Kong, there is strong opposition to the enactment of the Hong Kong National Security Law, arguing that it infringes on Hong Kong's autonomy and could cause Hong Kong to lose its status as a global financial hub. However, the opposition has not been able to consolidate momentum. Hong Kong labor and student groups conducted a vote on whether to hold a general strike and school boycott against the enactment of the Hong Kong National Security Law but failed to gain sufficient support.

This content was produced with the assistance of AI translation services.