HK LegCo Passes New National Security Legislation - State Council's Plan on Opening & Foreign Investment - Stressing Food Security
Here are the key reports and articles that I found noteworthy from the People's Daily’s edition on Wednesday, March 20, 2024.
Page 1: Xi Jinping is on an inspection tour in Hunan. The paper will, as is the norm, do a comprehensive report on the visit once it is done.
In the meantime, today, there is a report (English report) about the national conference on spring agricultural production and disaster prevention, reduction and relief efforts, which was held in Xinxiang, Henan. Li Qiang issued instructions, calling for doing a good job in this regard since this year “marks the 75th anniversary of the founding of New China and is a critical year for achieving the goals and tasks of the 14th FYP.”
The key point that Li made was “we must resolutely shoulder the responsibility of ensuring national food security, do our best to ensure the stable production and supply of grain and important agricultural products, and ensure that the rice bowl is firmly in our hands. Currently, spring agricultural production has entered a busy season. All localities and departments should accurately and meticulously do a good job in spring field management and spring ploughing preparation, increase policy support, strengthen technical guidance services, stabilize grain planting area, ensure agricultural production and supply, do a good job in agricultural disaster prevention and mitigation., strive to gain the initiative for a bumper harvest throughout the year, and provide strong support for high-quality economic and social development.” 要坚决扛起保障国家粮食安全责任，全力抓好粮食和重要农产品稳产保供，确保把饭碗牢牢端在自己手上。当前，春季农业生产进入大忙时节。各地区各部门要精准细致抓好春季田管和春耕备耕，加大政策扶持力度，强化技术指导服务，稳定粮食播种面积，保障农资生产供应，抓好农业防灾减灾，奋力赢得全年丰收主动权，为经济社会高质量发展提供有力支撑.
Vice Premier Liu Guozhong spoke at the conference. He “called for moves to increase grain and oil yields, encourage the use of supportive technology, and promote the development and maintenance of high-standard farmland. Efforts should also go to monitoring disaster risks and strengthening emergency preparedness to reduce the impact of disasters on agricultural output.”
There’s also a feature article on the page discussing the importance of spring ploughing and food security.
Next, there’s a report (English report) on the new State Council action plan to promote high-level opening-up and attract foreign investment. The full plan proposes 24 measures across 5 areas:
Section one calls to expand and improve the level of foreign investment liberalization:
Reasonably reduce the negative list for foreign investment access: This talks about opening up the manufacturing sector and to continue to promote the opening up of telecommunications, medical and other fields.
Carry out pilot projects to relax foreign investment access in the field of scientific and technological innovation: Allow certain qualified foreign-invested enterprises in free trade pilot zones such as Beijing, Shanghai, and Guangdong in areas such as the development and application of genetic diagnosis and treatment technologies. Support the opening-up measures in areas such as information services (limited to app stores) to be better implemented and effective in the free trade pilot zone.
Expand access for foreign financial institutions in the banking and insurance sectors: This calls to “deepen the opening up of commercial pension insurance, health insurance and other industries, and support qualified overseas professional insurance institutions to invest in, establish or participate in insurance institutions in China.”
Expand foreign participation in the domestic bond market.
Implement pilot projects for domestic investment by qualified foreign limited partners
The second section is about improving policy support. This covers taxation, finance, and energy consumption support to make China more attractive to foreign investment. In addition, the list of industries and projects that encourage foreign investment will be expanded. For instance, the document calls to “actively support foreign investment projects in the fields of integrated circuits, biomedicine, and high-end equipment to be included in the list of major and key foreign investment projects, and are allowed to enjoy corresponding support policies.” 积极支持集成电路、生物医药、高端装备等领域外资项目纳入重大和重点外资项目清单，允许享受相应支持政策.
Xinhua summarises the third section well. “To better serve foreign enterprises and build a fair and competitive environment, work will be done to remove actions and measures against fair competition, optimize the bidding system, and allow foreign enterprises to participate in standard formation and committees based on the same conditions. ‘Invest China’, as a brand, will be further promoted to showcase China's superior business environment and investment opportunities to overseas investors, the plan added.”
One of the key points mentioned above is this:
“Support foreign-invested enterprises to participate, on equal terms, in technical committees on standard formation or relevant standardization organizations for advanced manufacturing, engineering materials, information communication, and participate equally in the formulation and revision of standards in accordance with the law. Disclose national standard information in a timely manner and improve the transparency and openness of standardization work.” 支持外商投资企业以相同条件参加先进制造、工程材料、信息通信等标准化技术委员会或相关标准化组织机构，依法平等参与标准制定修订工作。及时公开国家标准信息，提高标准化工作的透明度、开放性.
Section four deals with smooth flow of factors of production. This says:
“Support the flow of data between foreign-invested enterprises and their headquarters. Standardize cross-border data security management, organize and carry out data export security assessments, standardize the filing of standard contracts for the export of personal information and other related work, and promote the orderly flow of cross-border data security for research and development, production, and sales activities of foreign-invested enterprises. Develop cross-border data transfer standards for the Guangdong-Hong Kong-Macao Greater Bay Area … establish a cross-border data flow mechanism for Hong Kong and Macao enterprises, explore the establishment of a ‘whitelist’ system for cross-border data flows, and steadily promote the convenient flow of data within the Guangdong-Hong Kong-Macao Greater Bay Area.” 支持外商投资企业与总部数据流动。规范数据跨境安全管理，组织开展数据出境安全评估、规范个人信息出境标准合同备案等相关工作，促进外商投资企业研发、生产、销售等数据跨境安全有序流动。制定粤港澳大湾区跨境数据转移标准，依托横琴粤澳深度合作区、前海深港现代服务业合作区等重大合作平台，建立港澳企业数据跨境流动机制，探索建立跨境数据流动“白名单”制度，稳步推动实现粤港澳大湾区内数据便捷流动.
“For executives and technical personnel of foreign-invested enterprises and their accompanying spouses and minor children, the validity period of visa entry is relaxed to 2 years. Promote the accelerated recovery of the number of international flights in key aviation hubs such as Beijing, Shanghai, and Guangzhou.” 为外商办理来华签证提供便利，对于外商投资企业管理人员、技术人员及其随行配偶和未成年子女，签证入境有效期放宽至2年。推动北京、上海、广州等重点航空枢纽的国际航班数量加快恢复.
Optimize the management of foreigners’ work and residence permits in China
“Deepen the implementation of international scientific and technological cooperation programs under new circumstances, support foreign-invested enterprises, foreign-funded research institutions, and multinational corporations established in China to equally participate in national key research and development programs, national major scientific and technological projects, and other national scientific and technological programs.” 深入实施新形势下国际科技合作计划，支持在中国境内设立的外商投资企业、外资研发机构、跨国公司平等参与国家重点研发计划、国家科技重大专项等国家科技计划项目。
The final section talks about strengthening IPR protection, improving cross-border data flow rules, the negotiation and signing of FTAs and aligning with international high-standard economic and trade rules. Let’s look at the data rules-related paragraph.
“Scientifically define the scope of important data. Comprehensively and deeply participate in the e-commerce negotiations of the World Trade Organization and promote the acceleration of the establishment of global digital trade rules. Explore pilot projects for cross-border data flow with members of the Digital Economy Partnership Agreement, accelerate the establishment of cross-border data flow cooperation mechanisms with major economic and trade partner countries and regions, and promote the construction of a multi-level global digital partnership network.” 健全数据跨境流动规则。科学界定重要数据的范围。全面深入参与世界贸易组织电子商务谈判，推动加快构建全球数字贸易规则。探索与《数字经济伙伴关系协定》成员方开展数据跨境流动试点，加快与主要经贸伙伴国家和地区建立数据跨境流动合作机制，推动构建多层次全球数字合作伙伴关系网络.
Page 2: Although I am not detailing this, there’s a report (English report) on the new regulations on implementation of China’s consumer rights protection law.
Page 3: First, there is a brief report informing that Vice Premier Zhang Guoqing will attend the first Nuclear Energy Summit in Belgium as Chinese President Xi Jinping's special envoy.
Second, there’s a report on Minister of Public Security Wang Xiaohong meeting with Reece Kershaw, Commissioner of the Australian Federal Police, in Beijing. Xinhua reports:
“Wang said it is hoped that the two sides will follow the important consensus reached by the leaders of the two countries, faithfully implement the Global Security Initiative, comprehensively deepen practical cooperation in law enforcement, jointly open a new chapter in law enforcement cooperation between China and Australia, and make new contributions to the development of China-Australia comprehensive strategic partnership.”
While on law-enforcement and GSI, if you haven’t already read it, I recommend going through this excellent article by Sheena Chestnut Greitens and Isaac Kardon in Foreign Affairs.
Page 4: The entire page is dedicated to the passing of the Safeguarding National Security Bill during a special session of Hong Kong’s legislature yesterday. The law was unanimously approved. SCMP reports:
“‘Today marks a historic moment for Hong Kong. It is a historic moment that Hong Kong has been waiting for 26 years, 8 months and 19 days … It is a proud moment for all of Hong Kong in collectively making glorious history,’ Chief Executive John Lee Ka-chiu said as he entered the chamber to personally congratulate legislators and announce that the new law would take effect on Saturday. ‘We have accomplished this historic mission, living up to the trust placed in us by the central government and the country’.”
John Lee’s full address is available here.
The report adds:
“The new Safeguarding National Security Ordinance covers 39 offences divided into five categories: treason; insurrection, incitement to mutiny and disaffection, and acts with seditious intention; sabotage; external interference; and theft of state secrets and espionage. The crimes of treason, insurrection, inciting members of the Chinese armed forces to mutiny, and colluding with external forces to damage public infrastructure are punishable by up to life imprisonment. Collusion charges can also apply to offenders based outside Hong Kong.”
The passage of the law was greeted with cheers from the mainland.
First, the Central Government’s Liaison Office in HK said that:
the passage of the law “is another milestone since Hong Kong's return to the motherland.” The added that the law consolidates “the foundation for Hong Kong’s long-term peace, prosperity and stability, and will ensure Hong Kong's high-quality development with a high level of security.” It also said that “the smooth passage of the bill demonstrated a new atmosphere under the principle of ‘patriots administering Hong Kong’, and illustrated positive interaction between executive and legislative bodies and their joint efforts to fulfill constitutional responsibilities. It also said that the ordinance is a law that takes into account both safeguarding national security and protecting human rights and freedoms.”
Second, HKMAO published an article (English report). In this, it “hailed the move as a milestone in developing the cause of ‘one country, two systems’. To safeguard national security is to safeguard ‘one country, two systems,’ the prosperity and stability of Hong Kong, and democracy and freedom in the region, according to the article, adding that it also means safeguarding the human rights and well-being of all the residents in the HKSAR. The formulation and promulgation of the bill will further consolidate the foundations of national security for the HKSAR's development and accelerate its advance toward becoming more prosperous, it said. By actively fulfilling its constitutional obligation to safeguard national security, the HKSAR has shown a new look of both loving the country and loving the region.”
It added:
“The bill fully respects and guarantees human rights. It only targets a very small number of people who endanger national security, while protecting the human rights and freedom of the vast majority of people, the article noted. It ensures better coordination in pursuing development and upholding security by strictly limiting its scope of application to acts and activities that endanger national security, it said. Normal business transactions and international contact, as well as general business disputes and criminal cases, will not be targeted, it added. With the high level of security guarantee, Hong Kong will achieve high-quality development and high-standard opening-up, the article said.”
Third, the Legislative Affairs Commission of the NPCSC said that (English report): The passage of the bill stands as a significant move and substantial progress made by the HKSAR in fulfilling its constitutional duty and legal obligation to safeguard national security.
Fourth, the Office for Safeguarding National Security said that “a very small number of people who engage in behaviours and activities that endanger national security will be prevented, stopped and punished in accordance with the law, and the majority of Hong Kong citizens and international investors will benefit from this. The overall advantages and institutional effectiveness of the common law of the SAR will be brought into full play, and Hong Kong's high-quality development and high-level opening will be more strongly guaranteed by the rule of law. 发言人指出，随着《维护国家安全条例》落地实施，极少数人实施危害国家安全的行为和活动将被依法防范、制止和惩治，广大香港市民和国际投资者都将从中受益。特区普通法整体优势和制度效能将充分发挥，香港高质量发展和高水平开放将得到更坚强的法治保障.
Also on the page is a newspaper commentary. It says that:
The smooth passage of the law “has filled the loopholes and shortcomings in the Hong Kong SAR's local legislation for safeguarding national security, and provided a more solid institutional guarantee for maintaining Hong Kong’s long-term prosperity and stability and promoting the steady and long-term practice of ‘one country, two systems’.”
It adds: The law “fully draws from the latest achievements and beneficial experiences of similar legislation in other countries, especially common law countries. It also fully absorbs the legal provisions in Hong Kong society is familiar with. It achieves a good balance between overall development and security, and between safeguarding national security and protecting rights and freedoms. It demonstrates the outstanding achievements of the rule of law civilization and showcases the core values of Hong Kong's society ruled by law. For the very few individuals who endanger national security, this law is a sharp sword hanging over them; for the vast majority of Hong Kong residents and foreign investors, this law is the ‘guardian/patron saint’ 守护神 safeguarding their rights and freedoms, as well as their property and investments. 香港国安条例充分借鉴其他国家特别是普通法国家同类立法最新成果和有益经验，充分吸收香港社会所熟悉的现行法律规定，在统筹发展与安全、统筹维护国家安全和保障权利自由之间取得了良好平衡，彰显了法治文明的优秀成果，彰显了香港法治社会的核心价值。对于那些危害国家安全的极少数人，这部法律是高悬的利剑；对于绝大多数香港居民和外来投资者，这部法律是保障其权利和自由、财产和投资的“守护神”.
Now let’s look at some international reactions:
The EU said that “the ‘Safeguarding National Security Bill’ could exacerbate the erosion of fundamental freedoms and political pluralism in Hong Kong brought about, in particular, by the National Security Law adopted on 30 June 2020. Moreover, the bill has the potential to significantly affect the work of the European Union’s Office, the European Union Member States’ Consulates-General, and could impact European Union citizens, organisations and companies in Hong Kong. This also raises questions about Hong Kong’s long-term attractiveness as an international business hub. The bill’s sweeping provisions and broad definitions, specifically in relation to foreign interference and state secrets, appear as particular concerns. The significantly increased penalties provided for in the Bill, its extraterritorial reach and its - at least partial - retroactive applicability are also deeply worrying.”
UN High Commissioner for Human Rights Volker Türk said that “It is alarming that such consequential legislation was rushed through the legislature through an accelerated process, in spite of serious concerns raised about the incompatibility of many of its provisions with international human rights law.” Türk stressed that broadly defined and vague provisions in the Bill under Article 23 of Hong Kong’s Basic Law could lead to the criminalization of a wide range of conduct protected under international human rights law, including freedom of expression, freedom of peaceful assembly, and the right to receive and impart information. “This ambiguity is deeply troubling, given its potential misuse and arbitrary application, including to target dissenting voices, journalists, researchers, civil society actors and human rights defenders…As we have already seen, such provisions readily lead to self-censorship and chilling of legitimate speech and conduct, in respect of matters of public interest on which open debate is vital.” Under the Bill’s “external interference” provisions, the broad definition of what constitutes “external force” could have a further chilling effect on engagement with human rights organisations and UN human rights bodies. “For such important legislation, with a significant impact on human rights to be passed without a thorough process of deliberation and meaningful consultation is a regressive step for the protection of human rights in Hong Kong.”
In its briefing, the US State Department’s spokesperson said that “We’re alarmed by the sweeping and what we interpret as vaguely defined provisions laid out in their Article 23 legislation. We think that this was fast-tracked through the nondemocratically elected legislative council after a truncated public comment period. We also believe that a lot of the phrasing and crimes that are outlined are poorly defined and incredibly vague. They use phrases such as external interference, which is incredibly vague. So we’re analyzing this legislation, and we are taking a look at what the potential risk could be to not just U.S. citizens but other American interests that we might have.”
Human Rights Watch informs that “The legislature took only 11 days to pass the Ordinance unanimously. At the committee stage, the legislature reviewed the 212-page bill in 39 hours, with no amendments proposed. The law will come into effect on March 23.” It is worth reading this article because they do very well to explain the vague definitions and consequences.