FACT CHECK: Foreign Businesses in Hong Kong are not ‘More Stable’ Thanks to National Security Law

On November 1, Chinese Foreign Ministry spokesperson Wang Wenbin was asked to comment on the decreasing number of U.S. companies with regional hubs in Hong Kong and whether Hong Kong’s sweeping National Security Law is causing reputational harm.

Census and Statistics Department data released on October 28 showed that 254 U.S. companies had regional headquarters in Hong Kong as of June – a 10% drop from 2020 and the lowest number since 2003, when 242 U.S. companies were there.

Wang said a January survey by the American Chamber of Commerce in Hong Kong showed “that in January 2021, a much larger proportion of companies are optimistic about the business environment in Hong Kong compared to August 2020.”

“Since the implementation of the Law on Safeguarding National Security in the Hong Kong SAR, U.S. and other foreign investors have enjoyed a safer, more stable and predictable business environment,” he said.

Trouble is, Wang misrepresented the survey, and the claim of a better business climate is false.