Hong Kong’s success debunks the false binary of security vs freedom

As a long-time observer of Hong Kong affairs – and someone who cares deeply about the city – I have often felt that external debates about Hong Kong have been louder than careful assessments of how the city is actually evolving. Since the implementation of the national security law, discussion of Hong Kong has often become polarised. Less attention has been paid to outcomes and observable change. From where I stand, however, a clear shift is under way: the city has moved from prolonged disruption back towards stability, and that stability is feeding into economic and social momentum. You may disagree, but it is hard to deny that the year preceding the national security law was marked by persistent social tension and repeated disruptions to daily life. Transport networks were periodically paralysed, commercial activity was interrupted and uncertainty weighed heavily on households and businesses. For a city whose success depends on predictability and confidence, restoring order was not an abstract political objective but a practical prerequisite for recovery. Recent economic data suggests that the stability is yielding tangible results. Hong Kong’s gross domestic product has recorded consecutive years of growth, surpassing HK$3 trillion (US$383.8 million) in 2024, with real GDP expanding by 3.5 per cent in 2025. Hong Kong ranks first globally in economic freedom, according to the Fraser Institute, as well as third in the Global Financial Centres Index. The city has returned to the world’s top three in overall competitiveness. Its standing as a talent hub has risen sharply, ranking fourth globally and first in Asia, a signal closely monitored by multinational firms making long-term location and investment decisions. Market performance provides further evidence. In 2025, the Hang Seng Index rose by 27.8 per cent, while Hong Kong’s initial public offering market more than doubled year on year, reclaiming the top global position. Longer-term investment trends tell a similar story. More than 2,700 single-family offices now operate in Hong Kong, with over half managing assets exceeding US$50 million. The number of companies with overseas or mainland parent firms maintaining operations in the city has surpassed 11,000, a historic high. These are sustained commercial commitments that signal confidence in Hong Kong as a global business hub. Equally important is the societal dimension. For many residents, a return to normality – reliable public transport, uninterrupted commerce and predictable civic life – has been quietly welcomed. Walking through Hong Kong, I no longer feel the sense of unease that lingered during 2019. Social healing is rarely dramatic, but it often begins with the restoration of everyday order. As daily routines stabilise, families and small businesses are better able to plan ahead, adapt to change and focus on opportunity rather than disruption. This gradual rebuilding of confidence at the societal level forms an indispensable foundation for economic resilience. Many of these developments are documented in a white paper released this month by China’s State Council Information Office. Using a data-driven approach, it traces how Hong Kong has safeguarded national security while strengthening institutional performance and the business environment. However, some critics continue to frame Hong Kong’s trajectory as a binary choice between security and freedom. Are such assessments informed by lived experience in Hong Kong or by a more distant reading of events? This framing oversimplifies how modern international financial centres operate. No major financial centre – from London and New York City to Singapore – functions without robust security laws to ensure public order. Such frameworks have not weakened their global standing; they have reinforced legal predictability and investor confidence. The relevant question was never whether security legislation should exist, but how it would be implemented and embedded within Hong Kong’s legal and institutional framework. Since the national security law’s enactment, this framework has taken shape through the establishment of supporting bodies, including the Committee for Safeguarding National Security and the Office for Safeguarding National Security of the Central People’s Government, and enactment of local legislation under Article 23. Together, these measures have provided a more coherent and comprehensive foundation for restoring order. Within this framework, legal proceedings under the national security regime – including high-profile cases such as that of Jimmy Lai Chee-ying – show how these laws are applied through established judicial processes. The handling of such cases underscores procedural fairness, adjudication in accordance with the law and the judiciary’s high level of professional rigour. By international comparison, Hong Kong’s national security laws remain moderate in scope and targeted in application. They concern a very small number of individuals and do not alter the legal environment faced by most businesses, professionals or investors. An American Chamber of Commerce poll found that 94 per cent of surveyed US companies said they remained confident in Hong Kong’s rule of law. Placed within a broader historical frame, Hong Kong’s present moment is neither abrupt nor anomalous. The city has endured financial shocks, public health crises and geopolitical pressures. It has repeatedly emerged more resilient and institutionally assured. What has unfolded since the implementation of the national security law follows that rhythm. A period of consolidation has restored order and strengthened institutional confidence. Stability, once regained, is no longer defensive; it is becoming productive. If history is any guide, this phase will not mark an endpoint, but the foundation for Hong Kong’s next stage of development.

Hong Kong’s success debunks the false binary of security vs freedom

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Contrary to what external critics might say about Hong Kong, the national security regime has helped build a foundation for the city’s comeback

Contrary to what external critics might say about Hong Kong, the national security regime has helped build a foundation for the city’s comeback