Hong Kong’s National Security Challenges: Should Beijing Be Worried?

Editor’s Note: This article, written by Shiu Sin-por, CEO of the New Paradigm Foundation Company Limited, was originally published in Ming Pao, a major Chinese-language newspaper. The following version has been translated and edited by The China Academy to better serve an international audience.

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This year marks the fifth anniversary of the enactment of The Law of the People’s Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region. Xia Baolong, Director of the Hong Kong and Macao Affairs Office of the State Council, made a special trip to Hong Kong to attend commemorative events, highlighting the importance the Central Government places on this matter. Director Xia, having served for years in various positions within local governments on the Mainland, initially had little involvement in national security affairs and was unfamiliar with Hong Kong’s on-the-ground situation. However, in the aftermath of the 2019 Hong Kong crisis, he was entrusted with the critical task of assuming the directorship of the Hong Kong and Macao Affairs Office, with the urgent responsibility of restoring order.

Under his leadership, Hong Kong swiftly established a comprehensive legal framework to safeguard national security, effectively filling the legal vacuum in this area. This achievement enabled Hong Kong society to regain stability following the severe upheavals of 2019, allowing the city to start anew, better integrate with China’s overall development, and contribute more significantly to the country. This accomplishment is by no means a trivial feat.

Against the backdrop of this commemorative moment, revisiting and reflecting on Hong Kong’s role in China’s national security framework carries special significance. However, many Hong Kong residents question why the government continues to emphasize national security and the need to raise public awareness, even though society has regained peace and stability, and most troublemakers have either left or been incarcerated.

In fact, Hong Kong’s long colonial history is itself a “case study in national security failure.” Otherwise, why would one part of the nation have remained under foreign rule for so long? The British administration over more than a century has distorted Hong Kong people’s understanding of national security. The vast majority of Hong Kong residents have little knowledge of or a misguided attitude toward national security—because under British colonial rule, “national security” meant safeguarding the colonial authorities’ governance and interests.
The British had extensive, detailed laws and stringent enforcement mechanisms in this regard. As a result, despite facing both internal and external security challenges, their governance of Hong Kong remained relatively stable compared to other colonies.

This historical experience shows that the targets, content, and nature of national security concerns vary with context and historical circumstance. Many fail to grasp that even with the enactment of the National Security Law, and the departure or containment of agitators, Hong Kong still faces real and evolving national security threats.Simplifying the issue underestimates the complexity of today’s environment in both Hong Kong and the nation as a whole.

What, then, are the prevailing national security issues confronting Hong Kong? At least the following two areas warrant continued attention:

First, Cyber and Information Security

Hong Kong has long been a crucial base for foreign intelligence gathering on China, and this did not cease with China’s reform and opening up—only the methods and areas of focus have changed. In the past, foreign powers relied on collecting local newspapers and interviewing travelers from the Mainland. Today, the techniques and intelligence targets are much more sophisticated. Besides political and military information, data related to social movements, commercial affairs, and personnel changes are now of keen interest.

In this regard, Hong Kong’s national security vulnerabilities have not diminished but instead have grown more complex. The internet has become the fundamental communication platform for society, and securing cyberspace and digital platforms has emerged as a new and critical challenge. Even after fleeing the city, many dissidents continue to use the internet to promote their political agendas, spread false information, and sow instability. In the past, it was Falun Gong; today, a new wave of provocateurs is seeking to destabilize Hong Kong.

Second, Financial Security

As a vital international financial center outside the Mainland, Hong Kong serves important national interests in the financial domain. The stability and growth of Hong Kong’s financial market are now integral to national development. For instance, the recent passage of legislation on stablecoins in Hong Kong has sparked significant debate and concern. Whether stablecoin-related activities could pose risks to the financial markets of both Hong Kong and the country at large is a question that must be taken seriously.

The development of Hong Kong’s financial sector has direct implications for the nation. These implications may be positive, but they could also be detrimental. Thus, financial security in Hong Kong should not be regarded as merely a local matter; it is intrinsically linked to national financial stability.

The above two examples highlight only some of the national security issues Hong Kong is currently facing. They demonstrate that despite the passage of national security legislation and the restoration of social stability, Hong Kong continues to face multifaceted national security challenges that warrant ongoing attention and public education.