2024 Hong Kong Policy Act Report

Consistent with sections 205 and 301 of the United States-Hong Kong Policy Act of 1992 (the "Act") (22 U.S.C. 5725 and 5731) and section 7043(g)(3)(C) of the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2023 (Div. K, P.L. 117-328), the Department submits this report and the enclosed certification on conditions in Hong Kong from February 2023 through December 2023 ("covered period").

Summary
The Department of State assesses that during the covered period, the central government of the People's Republic of China (PRC) took new actions that directly threaten U.S. interests in Hong Kong and that are inconsistent with the Basic Law and the PRC's obligation pursuant to the Sino-British Joint Declaration of 1984 ("Sino-British Joint Declaration") to allow Hong Kong to enjoy a high degree of autonomy. There remain key differences between Hong Kong and mainland China in some areas, including commercial and trade policy, internet freedom, and freedom of religion, but PRC and Hong Kong authorities continued to use "national security" as a broad and vague basis to undermine the rule of law and protected rights and freedoms. Authorities further restricted direct voting. In the Certification of Hong Kong's Treatment under U.S. Laws, the Secretary of State certified that Hong Kong does not warrant treatment under U.S. law in the same manner as U.S. laws were applied to Hong Kong before July 1, 1997.

During the covered period, Hong Kong authorities, under the supervision of the PRC central government, used the central government-imposed 2020 National Security Law (NSL) to further erode the rule of law in Hong Kong and the human rights and fundamental freedoms of people in Hong Kong, as well as to harass and intimidate individuals outside of its borders. In July and December, the Hong Kong Police Force issued bounties on overseas democracy advocates, attempting to enforce the NSL outside of Hong Kong's borders. Within the special administrative region, authorities undermined the rights of defendants in cases designated as involving national security.

Hong Kong authorities arrested and prosecuted people for peaceful political expression critical of the local and central governments, including for posting and forwarding social media posts. Hong Kong and PRC authorities continued to target civil society groups, activists, media companies and journalists, political parties, labor unions, academics, student groups, and other people and organizations that the government accused of being connected to Hong Kong's pro-democracy movement or otherwise critical of the local or central government. Hong Kong authorities undermined media freedom by continuing the prosecutions of journalists and restricting access to information.

PRC authorities denied people in Hong Kong a meaningful role in the city's governance, administering new rules that significantly limited the number of directly elected District Councilors and introducing a new nominating process that effectively barred independent and non-establishment candidates from running for office.

In December 2022, the PRC National People's Congress Standing Committee (NPCSC) issued its first "interpretation" of the NSL stating that the Chief Executive and Committee for Safeguarding National Security in Hong Kong have the authority to issue legally binding certificates and decisions on issues related to national security that are not subject to judicial review. In May 2023, the Legislative Council passed a law affirming this interpretation, allowing the Chief Executive to restrict overseas lawyers from participating in NSL cases, which further undermines the independence of Hong Kong's judiciary.

These actions and others contributed to the Department of State's assessment and the Secretary of State's certification.

Impact on Democratic Institutions and Universal Suffrage
During the covered period, PRC and Hong Kong authorities deliberately acted to restrict the ability of Hong Kong voters to elect representatives of their choosing. PRC and Hong Kong officials played an unprecedented role in shaping the outcome of District Council elections held on December 10, 2023.

New election rules in 2023 severely limited the role of voters, the ability of candidates to run for office, and the eventual role of directly elected representatives. Most notably, the proportion of district councilors elected by the public was reduced from nearly 95 percent to less than 20 percent. The majority of district councilors were appointed by the Chief Executive or selected by government-appointed district committees. All candidates had to secure nominations by members of regional committees to stand for election. No candidates from pro-democracy or independent parties secured nominations and therefore did not stand for election, and more than 90 percent of new district councilors came from the government-appointed committees responsible for nominating candidates. Voter turnout in December 10 District Council elections (27.5 percent) hit a record low, beating the previous record for low turnout in 1988 (30.3 percent) and far below the record high in 2019 (71.2 percent), when pro-democracy candidates won by a landslide.

Pro-Beijing politicians occupied the office of the Chief Executive and all but one of the 90 seats in the Legislative Council during the covered period, after electoral changes in 2021 drastically reduced the number of seats filled by direct election and required all candidates running for the Council to receive the approval of the Beijing-dominated Hong Kong Election Committee. Hong Kong authorities took no actions during this period to advance the election of all members of the Legislative Council by universal suffrage, which, as with the election of the Chief Executive, the Basic Law describes as its "ultimate aim."

Activists and local media reported that since the electoral changes, the Legislative Council and District Councilors have become less responsive to public input, particularly from marginalized and underrepresented groups.

Impact on Police and Security Functions
Hong Kong authorities used the NSL, which the NPCSC imposed on Hong Kong in June 2020, to conduct politically motivated arrests and prosecutions against people and groups expressing views critical of the PRC or Hong Kong authorities or affiliated with the pro-democracy movement.

During the covered period, based on publicly available information, authorities arrested at least 35 people in connection with alleged offenses that Hong Kong authorities designated as involving "national security," including pursuant to the colonial-era statute on "sedition" and the offenses listed in the NSL (secession, subversion, terrorist activities, and collusion with a foreign country or external elements to endanger national security). According to public reports, authorities filed charges against at least seven individuals in connection with alleged "national security"-designated offenses. During the covered period, at least five individuals were found guilty of violating the NSL or the sedition statute at trial, and none were acquitted, while at least 42 individuals pled guilty to violating the NSL or the sedition statute. This includes 31 of the 47 former politicians and activists charged with conspiracy to commit subversion for their involvement in the July 2020 unofficial pan-democratic primary election who pled guilty to that charge. With few exceptions, the individuals arrested and prosecuted were exercising freedoms guaranteed in the Basic Law and recognized in the International Covenant on Civil and Political Rights.

The NSL grants the Hong Kong Police Force (HKPF) broad authorities to conduct wiretaps, electronic surveillance, and searches without warrants in national security-related cases, and to require internet service providers to provide or delete information relevant to these cases. During the covered period, there were credible reports that PRC security services and the Office of Safeguarding National Security monitored pro-democracy and human rights activists as well as journalists in Hong Kong.

The Hong Kong government applied the NSL extraterritorially to target activists for exercising free speech. In July 2023, the HKPF announced arrest warrants and bounties of more than $127,000 each targeting eight democracy advocates living in the United States, the United Kingdom (UK), and Australia. On December 14, 2023, the HKPF announced arrest warrants and bounties targeting five additional activists living in the United States and the UK, including a U.S. citizen. The HKPF regularly questioned Hong Kong-based family members and acquaintances of overseas activists.

The Hong Kong police's surveillance of pro-democracy activists continued even after convicted offenders were released from prison. Pro-democracy student activist Tony Chung announced in December 2023 that he had fled Hong Kong to seek asylum in the UK. Chung had finished his three-and-a-half-year jail term in June 2023 after being convicted of multiple charges under the NSL, including "committing secession," as well as a sedition charge for "conspiracy to publish seditious publications." Chung told media he was under "intense surveillance" after being released from prison, and said he was required to report to national security police every two to four weeks. He said police compelled him to become a paid informant and provide information on fellow activists. He also said he signed a confidential declaration that restricted him from disclosing his interactions with national security police to any third parties, including a lawyer.

In December 2023, the Hong Kong government amended NSL implementation rules to expand its powers to seize assets. The NSL authorizes the Chief Executive to formulate implementation details without the need for scrutiny by the Legislative Council. The amendment allowed the Secretary of Security to freeze property of anyone convicted of national security offenses until the conclusion of that individual's legal proceedings.

Impact on Judicial Independence and the Rule of Law
The Sino-British Joint Declaration, as well as Hong Kong's Basic Law, provide for an independent judiciary in Hong Kong, but during the covered period, PRC and Hong Kong authorities took actions that eroded the Hong Kong judiciary's independence and ability to uphold the rule of law in cases that Hong Kong authorities designated as involving national security. In cases where authorities assert a nexus with national security, there is little to no expectation of a fair trial or associated fair trial guarantees and other applicable legal protections. In April 2023, the UN Special Rapporteur on the Independence of Judges and Lawyers warned that the NSL could undermine the independence of Hong Kong's judiciary, noting a lack of due process guarantees. The UN special rapporteur recommended the PRC review and reconsider the NSL in Hong Kong to comply with the PRC's international human rights obligations.

The NSL states that only the NPCSC – not Hong Kong courts – has the power to interpret the NSL, and any such interpretations are not subject to review in Hong Kong’s courts. The Hong Kong government and the PRC NPCSC intervened in democracy advocate Jimmy Lai's judicial proceedings, issuing the first "interpretation" of the NSL in 2022 to deny the defendant his choice of legal representation. In December 2022, the NPCSC issued its first "interpretation" of the NSL stating that the Chief Executive and Committee for Safeguarding National Security in Hong Kong have the authority to issue legally binding certificates and decisions on issues related to national security that are not subject to judicial review. The interpretation effectively empowered the Hong Kong executive branch to overturn or preempt judicial decisions related to national security, which experts noted can include topics such as finance, culture, or energy. In May 2023, the Legislative Council passed a law affirming this interpretation, allowing the Chief Executive to restrict overseas lawyers from participating in NSL cases, which further undermined the independence of Hong Kong's judiciary. On May 19, a court rejected Lai's appeal, blocking his lawyer from representing him in his NSL trial, which began on December 18.

Under the NSL, defendants charged with national security-related offenses may not be granted bail unless a judge has sufficient grounds to believe the defendant or suspect will not continue to commit acts endangering national security. Unlike in other criminal cases, it is the defendants’ burden to demonstrate that they will not continue to commit acts endangering national security. Under this standard, many defendants charged under the NSL remain in custody months or years after their initial detention. In dozens of cases during the covered period, pro-democracy activists were denied bail and held in pre-trial detention for years without trial. Some human rights groups called pre-trial detention in national security-designated cases a “form of indefinite detention without trial.” An October 2023 report by the Center for Asian Law at Georgetown University highlighted Hong Kong’s “alarming number of remand prisoners” and the “arbitrary nature of some bail rulings” in non-NSL cases against pro-democracy protestors. In cases where bail was granted, human rights groups noted defendants were frequently subjected to strict restrictions on their freedoms of expression and association as a condition of their bail.

Local authorities implemented an NSL provision requiring that the Hong Kong Chief Executive establish a list of judges to handle any cases concerning national security-related offenses. Although Hong Kong's judiciary selects the specific judge(s) from this list to hear any individual case, legal scholars argued this unprecedented involvement of the Chief Executive weakens Hong Kong’s judicial independence. During the covered period, Hong Kong authorities continued to refuse to disclose the membership of this list of judges or the criteria under which they were selected.

Under the NSL, Hong Kong authorities may direct that a panel of three specially designated national security judges will hear a case instead of a jury. The government dispensed with jury trials and used a three-judge panel to oversee NSL trials during the covered period, including the cases of the 47 politicians and activists charged with subversion for their involvement in the 2020 unofficial pan-democratic primary election; of Apple Daily founder Jimmy Lai; and of three former leaders of the Hong Kong Alliance in Support of Patriotic Democratic Movements of China, which organized the city’s formerly annual June 4 Tiananmen Square massacre vigil, with the permission and consent of the Hong Kong government.

Authorities continued to employ similar NSL legal procedures – such as waiving a trial by jury – in cases with non-NSL charges, such as sedition and commercial fraud.

In 2021, the Hong Kong government removed defendants' right to choose their own legal counsel in cases where they receive government-funded legal aid. Instead, the Hong Kong Legal Aid Department assigns lawyers, who may be susceptible to influence by Hong Kong authorities, to these cases. Some defendants in NSL cases have declined legal aid during the covered period for this reason, instead paying to hire their own lawyers or choosing to represent themselves.

The NSL provision that authorizes the Office for Safeguarding National Security to exercise jurisdiction over a case and for the Supreme People's Court in mainland China to designate a court to adjudicate it was not used during the covered period.

Impact on Freedom of Speech or Expression
Although Hong Kong law provides protections for freedom of speech, the Hong Kong government arrested and prosecuted individuals under the NSL or sedition law for speech critical of the PRC or Hong Kong government or their policies. Hong Kong officials characterized this type of speech as "inciting hatred against the government" or "promoting feelings of ill will or enmity between different classes." During the covered period, several individuals were charged with sedition for actions ranging from posting on social media, to importing a children's book, to wearing a shirt with slogans related to the 2019 pro-democracy protest movement.

In March 2023, a Hong Kong student, Yuen Ching-ting, was arrested on charges of “inciting Hong Kong independence” for publishing allegedly "seditious" posts online while studying in Japan. According to a court document, some of those posts were made before the July 2020 implementation of the NSL, dating back to September 2018. Police arrested Ms. Yuen when she returned to Hong Kong to renew her identity card. She was granted bail with strict conditions, including not being allowed to possess electronic devices with social media applications or to join chat groups with more than five people. She pleaded guilty on October 26 and was sentenced on November 3 to two months in prison.

In November 2023, Hong Kong police arrested a man for allegedly wearing "seditious" clothing at the airport. According to a government statement, he was charged with committing an act with "seditious intention" and "possessing seditious publications." He was denied bail and remanded in custody. Media reported he was wearing a shirt with the phrases “Liberate Hong Kong, Revolution of Our Times,” which prosecutors argued contained an inherent meaning of support for Hong Kong independence.

Hong Kong authorities prosecuted people for possessing books that they claimed included "seditious content." In September 2023, police invoked a colonial offense of "importing seditious publications" for the first time to charge a man who received 18 copies of "Sheep Village," a children's picture book a Hong Kong court previously ruled was seditious.

In May 2023, national security police seized the "Pillar of Shame," an artwork commemorating the 1989 Tiananmen Square massacre, from the Hong Kong University Kadoorie Centre in Yuen Long, where the statue has been stored since its removal from public view in 2021. Hong Kong police declined to comment on a media report that authorities might seek to arrest the Danish sculptor who created the "Pillar of Shame," saying only, "we will act based on the situation, and take action according to law."

Hong Kong legislation prohibits acts deemed to abuse or desecrate the PRC flag or anthem, including acts online, as well as inciting others not to vote in elections or to cast blank ballots. During the covered period, the Hong Kong government arrested and prosecuted individuals under this legislation. For example, on December 4, the Independent Commission Against Corruption (ICAC), Hong Kong’s anti-corruption watchdog, arrested and charged a man for allegedly posting calls on social media to boycott the election. A Hong Kong court on December 5 issued an arrest warrant for Germany-based news commentator Wong Sai-chak after he published an online video urging Hong Kong residents to boycott District Council elections. The ICAC also arrested three individuals on election day for the same offense, which warrants a maximum penalty of three years’ imprisonment and a fine of $25,500 upon conviction. Separately, police also arrested four people on election day for allegedly planning to protest outside a polling station where Chief Executive John Lee was expected to cast his vote.

Impact on Freedom of the Press
The Basic Law provides for freedom of the press, which is also guaranteed under the Sino-British Joint Declaration, but PRC and Hong Kong authorities repeatedly violated and undermined this freedom. Hong Kong authorities targeted media that expressed views or reported news it construed as not pro-government. The Foreign Correspondents' Club and the Hong Kong Journalists Association (HKJA) each released surveys in July 2023 showing most members believed press freedom in the city has declined since the most recent surveys in October 2021. Respondents cited the causes as: the NSL; Hong Kong government enforcement actions and the less-tangible pressures it applied to ensure national security; and the overall chilling effect of those factors on free expression in the city. Moreover, Reporters Without Borders now ranks Hong Kong's press freedom as 140 out of the 180 countries and territories evaluated. Widespread reports of media self-censorship and suspected content control continued.

Hong Kong authorities continued the prosecution of former editors and executives of now-closed independent media outlets Apple Daily and Stand News under Hong Kong's sedition law, and prosecuted Jimmy Lai and other former Apple Daily executives and editors under the NSL. During the trial of two former Stand News editors, prosecutors argued that the newspaper committed sedition by publishing articles about and commentaries by prominent pro-democracy political figures, including candidates in the 2020 unofficial pan-democratic primary election and former lawmakers now in exile overseas. The trial continued through the end of the covered period.

During the covered period, Apple Daily founder Jimmy Lai pled not guilty to sedition and foreign collusion charges. After more than 1,000 days in jail, Lai's NSL trial began in December. Government prosecutors cited Lai's public videos, opinion columns, and postings on Twitter (now called X) – most of which pre-dated the 2020 NSL – as evidence, prompting criticism from many that the Hong Kong government was criminalizing journalism. As evidence, the government also cited Lai's personal communications found by searching his mobile phones, which had been the subject of previous litigation.

PRC and Hong Kong officials, as well as Beijing-controlled media, repeatedly criticized the HKJA during the covered period and accused the organization of potential NSL violations. In September 2023, Ronson Chan, HKJA chairperson and Channel C reporter, was sentenced to five days in prison for failing to present his ID to police while reporting in September 2022. The following day, Reporters Without Borders denounced the sentence. During 2023, two freelance journalists were denied entry to Hong Kong for reasons they believed to be related to their prior reporting on the 2019 protests or Hong Kong’s political situation.

More than 150 foreign news outlets received complaint letters from the Hong Kong government during the year, citing articles and editorials about the local government, the NSL, and major events in Hong Kong. These letters, often under the name of the Chief Executive or other high-level officials, characterized the reporting and editorials as "grossly biased," "groundless allegations," or as having "reached new levels of nastiness." In February 2023, pro-Beijing media outlet Oriental Daily News accused the police of "pressing the media" after the newspaper received a letter from the police accusing it of criticizing police in "a biased and derisive manner."

In May 2023, local newspaper Ming Pao announced without explanation that it suspended publication of content by prominent political cartoonist Wong Kei-kwan (known as "Zunzi"). Since 1983, Zunzi had published satirical comics in Ming Pao about Hong Kong affairs, including the NSL and electoral reform. Several Hong Kong officials, including Chief Secretary Eric Chan, Secretary for Security Chris Tang, and Secretary for Home and Youth Affairs Alice Mak, publicly criticized Zunzi's cartoons as "misleading" or "biased." The HKJA said the incident showed that the city “could not tolerate critical voices” and that the room for free speech had "narrowed further." All publications by Zunzi were also removed from public libraries.

In May 2023, local online news platform Transit Jam ceased operations. The outlet was established in 2020 and reported on local transportation and infrastructure issues. The announcement came days after pro-Beijing media attacked Transit Jam owner James Ockenden, alleging that Ockenden's protest during Hong Kong and Macau Affairs Office Director Xia Baolong's April visit was orchestrated by external forces, and accused Ockenden of publishing "anti-government posts" on the online outlet and social media.

In June 2023, Citizens' Radio, a pro-democracy radio station founded in 2005 by former lawmaker Tsang Kin-shing, ceased operations after Tsang said the Hang Seng Bank froze the station’s bank account.

The Hong Kong government limited journalists’ access to information during the covered period. In March 2023, journalist Bao Choy successfully appealed her conviction for improperly accessing a government vehicle registration database while researching an investigative report into mob-linked violence in 2019. In January 2024, the Hong Kong government announced a new mechanism requiring journalists to write to apply, with full justification, to obtain the registration information, whereupon the transport commissioner will decide whether the application involves "significant public interest." Several journalists, including the HKJA chairperson, claimed the revamped arrangement was contrary to freedom of speech and press freedom as guaranteed by the Basic Law and the constitution, as local media relied on car registration searches to conduct investigative reporting. Government pressure on media contributed to a rise in self-censorship.

In May 2023, the Foreign Correspondents' Club, which suspended its annual Human Right Press Awards in 2022 after hosting it for 25 years, issued a set of guidelines for the club's and club members' statements on press freedom issues. These guidelines include seeking legal advice and contacting the Hong Kong government ahead of publication.

Impact on Internet Freedom
While internet access remained widespread and generally open, local authorities charged people engaged in online political speech with criminal offenses and otherwise deterred free speech online and in electronic communications. Hong Kong authorities did not generally disrupt open access to the internet, but there were numerous reports that Hong Kong authorities, exercising powers granted by the NSL, required private companies to block access to certain websites, provide user information, and remove political content. For example, in September 2023, lawyer and human rights activist Samuel Bickett's Substack blog Hong Kong Law and Policy became inaccessible from Hong Kong.

The NSL and its implementing regulations grant extensive powers to police to order the blocking and removal of content by message publishers, platform service providers, hosting service providers, and network service providers. Police can also intercept communications or conduct covert surveillance upon approval of the Chief Executive. When investigating NSL violations, police may also require a person who published information or opinions or the relevant service provider to provide information on the end users. While internet access remained widespread and generally open, local authorities charged individuals who engaged in online political speech, and otherwise deterred free speech online and in electronic communications.

Under Hong Kong anti-doxing laws, local officials have the authority to fine online platforms that do not comply with user information or content takedown orders and to arrest their Hong Kong-based staff.

A Google transparency report showed the Hong Kong government submitted 72 requests to remove content in the first six months of 2023, the highest number since Google started publishing such data in 2011. Over two-thirds of these requests were initiated by the Hong Kong police. Content targeted for removal included the popular protest anthem "Glory to Hong Kong" as well as five documentaries on YouTube about imprisoned democracy activists and an allegedly "seditious" children's book "Sheep's Village." According to the report, Google denied these requests.

In June, the government applied for a court injunction to ban online dissemination of “Glory to Hong Kong” after Google refused authorities’ request to remove the song from search results. The High Court blocked the injunction on July 28, but the government appealed the decision, and another hearing is scheduled for 2024.

Impact on Freedom of Assembly
Hong Kong law provides for protection of freedom of assembly, but Hong Kong authorities violated this right during the covered period, especially for individuals associated with the pro-democracy movement. Under Hong Kong law, organizers of public meetings and demonstrations are required to apply for a “letter of no objection” from police, but the police did not issue any such letters to groups not affiliated with the PRC or Hong Kong governments during the covered period, effectively banning all non-government sanctioned protests. Until COVID-19 restrictions were lifted in March 2023, authorities cited such restrictions to refuse authorization for assemblies, although civil rights organizations said the intent of the denials was aimed at preventing political gatherings rather than promoting public health.

In March 2023, police approved the city’s first rally since the lifting of COVID-19 restrictions, allowing a protest of a reclamation plan, but the government required all participants to march without masks (and therefore be more publicly visible) and limited participation to 100 persons, all of whom had to wear a number tag.

In April 2023, the Federation of Hong Kong and Kowloon Labor Unions canceled its planned April 29 Labor Day rally, which it held annually prior to the 2020 pandemic, citing its failure to obtain a letter of no objection from police. The police did not offer a reason for not issuing the letter.

In June 2023, police arrested at least 23 people on the 34th anniversary of the Tiananmen Square massacre in what media described as an effort to thwart attempts to commemorate the event. The Hong Kong government has not authorized the annual candlelight vigil to be held in Victoria Park since 2019. Security Chief Chris Tang warned authorities would take “resolute action” against anyone taking advantage of “a special occasion” to threaten national security by promoting Hong Kong independence or seeking to subvert state power.

Throughout the reporting period, however, Hong Kong police authorized multiple small protests outside of the U.S. Consulate General Hong Kong and Macau to express views against the United States. Protestors included representatives from Hong Kong’s largest political party, the Democratic Alliance for the Betterment and Progress of Hong Kong, the New People’s Party, and the Federation of Trade Unions.

Impact on Freedom of Association
PRC and Hong Kong authorities disregarded freedom of association, a right enshrined in the Basic Law PRC and Hong Kong authorities used threats, investigations, arrests, asset freezes, and other actions to force the closure of groups they deemed a “national security” concern for their involvement in the pro-democracy movement. Many groups cited increasing legal risks following the imposition of the NSL. Hong Kong authorities used police investigations to place pressure on the family and acquaintances of overseas democracy advocates.

Hong Kong authorities continued to use the NSL, the Societies Ordinance, and the Trade Union Ordinance to repress independent unions and other civil society groups. In February 2023, the International Trade Union Confederation condemned the significant regression of union rights in Hong Kong, including a wave of union dissolutions and state-run media attacks on the Confederation of Trade Unions and the HKJA. Unions expressed concern about the safety of their members and their ability to operate freely under the NSL, which some labor groups reported has increased scrutiny on funding for nongovernmental organizations.

Under the regulations implementing the NSL, Hong Kong police may require any group that is considered a "foreign agent" to provide information on its activities, personnel, and finances, with a maximum prison sentence of six months for failure to comply. In March 2023, three former leaders of the Hong Kong Alliance in Support of Patriotic Democratic Movements of China, including prominent democracy activist and barrister Chow Hang-tung, were convicted and sentenced to more than four months in prison for not complying with a national security policy request for more information. EU spokesperson Nabila Massrali described the sentencing as “another example of the authorities abusing legislation to suppress fundamental freedoms.”

In May, the Civic Party, a pro-democracy party founded in 2006, announced it would disband. Another opposition group, the League of Social Democrats, revealed in June that a bank had terminated the party's accounts without explanation.

In August, national security police arrested 10 persons associated with the defunct "612 Humanitarian Fund," on allegations of "conspiracy to collude with a foreign country or with external elements to endanger national security" and "inciting rioting."

Beijing-controlled media outlets in Hong Kong regularly accused organizations, including political parties and civil society groups, of being "anti-China" or violating the NSL because of their dissenting political opinions.

Impact on Freedom of Movement
Hong Kong law, including the Basic Law, provides for freedom of movement within Hong Kong, as well as the freedom to travel, to enter or leave Hong Kong, and to emigrate, but during the covered period, the government restricted enjoyment of this right for certain individuals. Hong Kong law enforcement nevertheless continued to use a provision of the NSL to seize travel documents from democracy activists and opposition politicians arrested under the NSL, even without filing charges.

According to local media reports, Hong Kong authorities maintain an exit ban "watchlist" of residents who will be intercepted if they attempt to leave Hong Kong, and many former activists and protestors who have been arrested are not allowed to depart Hong Kong as a condition of their bail.

On December 4, Agnes Chow announced on social media she would not return to Hong Kong. Chow, a pro-democracy activist and founding member of the now disbanded Demosisto political party, told media that Hong Kong authorities confiscated her passport and closely monitored her movements as conditions of her bail after she was arrested in 2020 for allegedly colluding with foreign forces. She said that the Hong Kong government only allowed her to depart Hong Kong and study abroad in Canada in September 2023 after she participated in a one-day trip to mainland China with Hong Kong police. She said that police officers took her to a "patriotic" exhibition showcasing China's achievements, and she toured the headquarters of technology firm Tencent. Chow said police also required her to write and sign several letters, including one thanking Hong Kong authorities. On December 29, police publicly condemned Chow for failing to report to authorities and confirmed she is now on the police's wanted list.

There were reports that authorities denied entry to individuals based on their perceived links to the 2019 pro-democracy protests and international human rights organizations. A Japanese street musician performing under the name "Mr. Wally" disclosed on social media that he was interrogated for two hours by immigration officers upon arriving at Hong Kong International Airport in June 2023, and he was ultimately refused entry and deported to Japan the following day. In August, authorities refused to allow a photographer from the United States to enter Hong Kong, without giving an explanation. The photographer told media he suspected the Hong Kong government had "blacklisted" him because he had photographed and staged an exhibition of 2019 pro-democracy protests.

Impact on Education and Academic Freedom
During the covered period, Hong Kong authorities restricted expression in schools and universities, threatened and penalized teachers and academics who expressed dissenting opinions, and reformed curriculum to include “national security education.”

In accordance with the NSL, the Hong Kong Education Bureau implemented a national security education curriculum at all grade levels in government-funded schools, as well as, to a lesser extent, in international and private schools. Under Education Bureau guidelines, schools are required to prevent and suppress any curriculum and activities that are in breach of the NSL, the Basic Law, or other Hong Kong law; to limit political expression and activities on school campuses; and to support periodic reports regarding their implementation of "national security education." Education Bureau guidelines for primary and secondary school teachers bars them from encouraging speech that "violates the social order" and from promoting "biased values," and requires teachers to have a "correct understanding" of the NSL.

As of the 2022-2023 academic year, all eight publicly funded universities in Hong Kong require undergraduate students, including international students, to complete mandatory "national security" courses to graduate, according to government documents. At least three private universities will also require the courses.

Public libraries, schools, and universities culled their holdings, including archives, to comply with the NSL. Hong Kong University required library users to register to access "Special Collections" containing books about the Tiananmen Square massacre and others written by Hong Kong democracy advocates. The Hong Kong Public Library required special registration to access microfilm collections on the Tiananmen Square massacre.

In September 2023, the V-Dem Institute, a research organization based in Sweden, released a report on academic freedom that found Hong Kong ranked 152 out of 179 countries in 2022. According to the organization's academic freedom index, Hong Kong’s score has gradually declined from its peak (0.89) in 1997 to a new low (0.23) in 2022. The index ranges from 0 to 1, with the higher the index, the higher the degree of academic freedom. It rates five factors, including freedom of "research and teaching," "academic exchange and dissemination," "institutional autonomy," "campus integrity," and “academic and cultural expression.”

In October, Chinese University of Hong Kong fired history professor Rowena He after the Hong Kong government denied her work visa renewal. Professor He, a Canadian citizen and scholar of the 1989 Tiananmen Square massacre, told media her visa denial was an attack on intellectual freedom and expressed concern it would have a chilling effect on other Hong Kong academics. The Hong Kong government removed He’s book “Tiananmen Exiles: Voices of the Struggle for Democracy in China” from Hong Kong public libraries in May.

In November, the Legislative Council passed a bill to reform Chinese University of Hong Kong’s (CUHK) governing council, reducing the number and influence of university staff and academics, and increasing the number of external members. When debating the bill, Bill Tang, one of three lawmakers on the university’s governing council who initiated the bill, cited clashes between protestors and police at CUHK during 2019 protests as one of the justifications for the reform.

Impact on Freedom of Religion or Belief
Hong Kong authorities generally respected freedom of religion or belief. During the covered period, most religious leaders and advocates stated the NSL did not negatively impact religious practitioners’ ability to worship without government interference. However, religious leaders reported that they increasingly practice self-censorship, including by avoiding political topics in their sermons and not appointing clergy deemed to be critical of the government. In 2022, the Diocese of Hong Kong’s Justice and Peace Commission, which had organized annual masses commemorating victims of the Tiananmen Square massacre June 4 masses could violate the NSL and announced no Catholic churches in the city would hold memorial masses. Hong Kong authorities arrested and prosecuted religious leaders for activities and nonviolent political expression related to the pro-democracy movement. As of the end of 2023, the trial of Cardinal Joseph Zen, the former Catholic Bishop of Hong Kong, and an outspoken defender of civil rights in Hong Kong and mainland China, on suspicion of "collusion with foreign forces" remained pending. In August, national security police arrested 10 persons associated with the defunct "612 Humanitarian Fund," of which Zen was a trustee, on allegations of “conspiracy to collude with a foreign country or with external elements to endanger national security" and "inciting rioting." Some religious leaders, including Zen himself, described these arrests as connected to these people’s political activities rather than their religious roles. However, activists and other religious figures expressed fears that the arrests could further discourage religious leaders and organizations from speaking out on political issues.

According to the November 2023 report from Hong Kong Watch, some religious leaders said religious schools in Hong Kong, under pressure from the government, were "diluting religious education" due to new NSL and "patriotic" education mandates.

Impact on U.S.-Hong Kong Exchanges
U.S. institutions conducted a wide range of nongovernmental academic, cultural, educational, and scientific exchanges with Hong Kong counterparts. Public and private universities in Hong Kong offer opportunities for students to study in the United States, including semester-long reciprocal exchanges with U.S. universities as well as joint degree and group exchanges organized through academic departments. U.S. Department of State professional-level exchanges are returning to pre-pandemic levels, with the exception of the U.S.-Hong Kong/Macau Fulbright exchange program, which remains suspended by E.O. 13936.

Impact on U.S. Citizens
In 2023, an estimated 84,000 U.S. citizens lived in Hong Kong. That number has rebounded to approximately the same number as before the COVID-19 pandemic. Since the imposition of the NSL in June 2020, the PRC increasingly exercised police and security power in Hong Kong, subjecting U.S. citizens who are publicly critical of the PRC to a heightened risk of arrest, detention, expulsion, or prosecution in Hong Kong. The Department of State has highlighted these risks to U.S. citizens in its Travel Advisories for Hong Kong. Some U.S. citizens with ties to people or organizations that have been critical of the Hong Kong or PRC central governments were held and questioned by immigration authorities upon entering Hong Kong regarding their local contacts and refused entry into Hong Kong. For some teachers, national security education policies have led to restrictions on academic freedom.

U.S.-Hong Kong Cooperation and Agreements
The United States and Hong Kong continue to maintain several bilateral agreements regarding issues such as taxation, parcel delivery, and air transportation services. In 2020, Hong Kong authorities notified the U.S. government of their purported suspension of an agreement concerning mutual legal assistance in criminal affairs.

During the covered period, the Hong Kong government ignored or denied pending official requests the U.S. government had made for mutual legal assistance under the UN Convention against Transnational Organized Crime and UN Convention against Corruption, and the U.S. government made no new requests under these conventions. U.S. law enforcement had very limited official engagement with the HKPF National Security Department during the covered period. U.S. law enforcement agencies made efforts to liaise with Hong Kong law enforcement counterparts and had limited cooperation in the fields of counter trafficking in persons, trade fraud, wildlife trafficking, child exploitation, drug trafficking, intellectual property rights theft, financial crimes, and money laundering.

Sanctions Engagement
The United States communicated with Hong Kong authorities through demarches and notifications on issues involving sanctions implementation, including with respect to actions taken by the Department of the Treasury against several Hong Kong-registered entities under sanctions authorities related to China, Russia, and Iran. While the Hong Kong government maintained during the covered period that it would only implement UN sanctions, not “unilateral” sanctions such as U.S. designations, the Hong Kong Monetary Authority has clarified for banks that while they are under no legal obligation to observe foreign government unilateral sanctions, banks need to establish and implement policies for their Hong Kong businesses that are informed by a thorough assessment of any legal, business, and commercial risks involved.

Actions Taken by the U.S. Government
Since the imposition of the NSL in June 2020, the U.S. government has imposed financial sanctions on 42 PRC and Hong Kong officials under E.O. 13936, 39 of whom were identified pursuant to section 5(a) of the Hong Kong Autonomy Act, in connection with actions or policies that threaten the peace, security, stability, or autonomy of Hong Kong. Under Section 7 of the E.O., those designated for financial sanctions and their immediate family members are also subject to visa restrictions. The U.S. government has also taken steps to impose visa restrictions on numerous PRC officials and their immediate family members under Section 212(a)(3)(C) of the Immigration and Nationality Act, similarly for their involvement in the undermining of Hong Kong’s autonomy. The U.S. government did not impose sanctions on any new individuals under these authorities during the covered period.

At various times during the covered period, in response to PRC and Hong Kong authorities’ actions, the United States issued statements, often with likeminded partners, raising concerns and calling for those authorities to respect Hong Kong’s promised high degree of autonomy. In July 2023, the Department of State released its annual Investment Climate Statement for Hong Kong, which highlighted the increased risks to U.S. business operations and activities as a result of the PRC’s actions to undermine Hong Kong’s autonomy and rule of law. The Department of Commerce also highlighted these risks in its Country Commercial Guide.

Officials from the U.S. Consulate General in Hong Kong and Macau regularly attended court hearings and trials of defendants charged with offenses designated as involving "national security" alongside representatives from a broad range of concerned countries. The U.S. Consulate General in Hong Kong and Macau maintains a list, based on publicly available sources, of all people and organizations in Hong Kong arrested, charged, or found guilty in connection with offenses designated as involving "national security."

Areas of Remaining Autonomy Even though the PRC continued its efforts to erode the rights and freedoms it promised for Hong Kong under the Basic Law and the Sino-British Joint Declaration, key policy differences remained between Hong Kong and mainland China, including in the areas of commercial and trade policy, internet access, and freedom of religion.

Hong Kong continued to exercise authority in the implementation of commercial agreements and practiced free and open trade, with negligible tariff or non-tariff barriers. Commercial and civil aspects of the Hong Kong legal system continued to be based on common-law traditions, though the continued enforcement of the NSL, as well as the NPCSC’s December 2022 interpretation of the NSL, raised serious concerns about the judicial system’s continued independence. Hong Kong’s extensive body of commercial and company law generally follows that of the United Kingdom, including the common law and rules of equity. Most statutory law is made locally. The local court system provides for effective enforcement of contracts, dispute settlement, and protection of rights. Foreign and domestic companies register under the same rules and are subject to the same set of business regulations. Property rights were well-protected in law and practice. Hong Kong maintained its own currency, pegged to the U.S. dollar. The Hong Kong Monetary Authority set monetary policy autonomously from the People’s Bank of China, and Hong Kong’s financial regulators continued to act independently from their mainland China counterparts.

Hong Kong sets its own data regulations and does not have any broad data localization requirements. Under mainland China’s cross-border data transfer requirements, Hong Kong is considered outside of China and is treated the same as foreign jurisdictions.

The Hong Kong government appears to have wide latitude in setting policies on climate and green finance, and the city has set climate disclosure requirements that are stricter than mainland China’s and aligned with international best practices.

Hong Kong continues to have separate representation from mainland China in a number of international organizations and multilateral entities, including the Financial Action Task Force, the Asia-Pacific Economic Cooperation forum, the International Olympic Committee, and the World Trade Organization, and participates autonomously in various green finance multilateral fora. The extent to which PRC authorities influence Hong Kong votes and actions in these bodies remains unclear.

Export Controls
Since December 23, 2020, the Commerce Department’s Bureau of Industry and Security (BIS) has reviewed transactions involving Hong Kong under the same export control policy as any other PRC destination. Between February 1, 2023, and December 31, 2023, BIS identified and designated 39 entities located in Hong Kong that provided support for a foreign military acting contrary to U.S. foreign policy and national security. As a result, a BIS license is required for certain exports, reexports, and in-country transfers when a party has knowledge that a military end user is a party to the transaction (e.g., as purchaser, intermediate consignee, ultimate consignee, or end user).

Hong Kong Policy Act Findings
E.O. 13936, issued in July 2020 to address the suspension of the application of Section 201(a) of the Hong Kong Policy Act to certain U.S. laws, remains in effect. There were no terminations under section 202(d) or determinations under section 201(b) of the Act during the covered period.