JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Hong Kong Special Administrative Region Annual Report for 2022
Date: 2023-08-18
Institutions: European Commission, European External Action Service
Subjects: Hong Kong, activity report, bilateral relations, coronavirus disease, economic situation, epidemic, fundamental rights, human rights, political situation, regional integration

EN 

  EN 

   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 18.8.2023  JOIN(2023) 30 final  JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Hong Kong Special Administrative Region    Annual Report for 2022  
 
 
JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE 
COUNCIL 

HONG KONG SPECIAL ADMINISTRATIVE REGION 

ANNUAL REPORT FOR 2022 

Summary  

Since Hong Kong’s handover to the People’s Republic of China (PRC) in 1997, 
the European Union (EU) and its Member States have closely followed political 
and economic developments in the Hong Kong Special Administrative Region 
(SAR). 

In  line  with  the  commitment  given  to  the  European  Parliament  in  1997,  the 
Commission and the High Representative issue an annual report on developments 
in Hong Kong with a particular focus on the implementation of the ‘one country, 
two systems’ principle and on Hong Kong’s autonomy as stated in the Basic Law. 

This  is  the  25th  report,  covering  2022.  The  year  was  marked  by:  (i)  the  25th 
anniversary of the handover of Hong Kong to China, with the visit of President 
Xi Jinping; (ii) the second anniversary of the imposition of the National Security 
Law (NSL) on Hong Kong; and (iii) the swearing-in of John Lee, the first Chief 
Executive to be selected after the implementation of sweeping changes to Hong 
Kong’s electoral system. John Lee was the sole candidate. In parallel, 2022 saw 
the continuing erosion of Hong Kong’s high degree of autonomy and of rights 
and freedoms that were meant to be protected until at least 2047.   

The year was also marked by the far-reaching implementation of the NSL. Trials 
of pro-democracy activists and politicians continued to intensify. Many people 
were awaiting trial, including 47 pro-democracy activists who participated in a 
primary election, members of the now-disbanded Hong Kong Alliance in Support 
of Patriotic Democratic Movements of China, media tycoon Jimmy Lai and many 
others.  Many of them  have been  held  in  custody  since January  2021, in some 
cases in solitary confinement. The colonial-era sedition law was repeatedly used 
in national security cases. In July, the United Nations Human Rights Committee 
in  its  fourth  periodic  review  under  the  International  Covenant  on  Civil  and 
Political Rights in Hong Kong called for the repealing of both the NSL and the 
sedition law. 

Although  Hong  Kong  still  enjoys  internet  freedom,  the  authorities  blocked 
sensitive online content, such as the website of Hong Kong Watch, in February 

1 

 
 
 
 
 
 
 
 
 
 
2022.  Several other  laws  threaten internet  freedom,  such  as the  ‘anti-doxxing’ 
law and the copyright law. 

On 28 November, the Chief Executive requested the Standing Committee of the 
National People’s Congress to interpret the NSL for the first time.  

These  developments  increasingly  cast  doubt  on  the  state  of  the  rule  of  law  in 
Hong Kong – a cornerstone of its economic success.  

The EU has publicly and privately raised concerns about developments in Hong 
Kong.  

The High Representative issued the following declaration on behalf of the EU 
relating to Hong Kong:  

8 May – declaration on the Chief Executive election held on 8 May1. 

The High Representative issued the following tweet relating to Hong Kong:  

12 May – tweet on the arrests of Denise Ho, Hui Po-keung, Margaret Ng 
and Cardinal Joseph Zen 2. 

The EU Spokesperson’s statement on Hong Kong covered the following: 

28 July – statement on civil and political rights3. 

The EU Spokesperson’s tweets on Hong Kong covered the following: 

4 January – tweet on the closure of Citizen News4; 

16 March – tweet on Hong Kong Watch as the first foreign organisation 
to receive a warning from the national security police5;  

1 Declaration by the High Representative on behalf of the European Union on the Chief Executive election held on 8 May, 
Council of the EU, 8 May 2022, available at: https://www.consilium.europa.eu/en/press/press-releases/2022/05/08/hong-
kong-declaration-by-the-high-representative-on-behalf-of-the-european-union-on-the-chief-executive-election-held-on-8-
may/ 
2 Tweet by the High Representative on the arrests of Cardinal Joseph Zen, Margaret Ng, Denise Ho and Hui Po-keung, 12 
May 2022, available at: 
https://twitter.com/josepborrellf/status/1524463674278264834?s=21&t=waWDgBNVJ77GO5_t9QmZ-g. 
3 Statement by the Spokesperson on civil and political rights, European External Action Service, 28 July 2022, available at: 
https://www.eeas.europa.eu/eeas/hong-kong-statement-spokesperson-civil-and-political-rights_en. 
4 Tweet by the Spokesperson on the closure of Citizen News, European External Action Service, 4 January 2022, available 
at: https://twitter.com/nabilaeuspox/status/1478056509825327109?s=21. 
5 Tweet on Hong Kong Watch as the first foreign organisation to receive a warning from the National Security Police, 
European External Action Service, 16 March 2022, available at: 
https://twitter.com/nabilaeuspox/status/1504029166622191616?s=21. 

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1 July – tweet on the 25th anniversary of the establishment of the Hong 
Kong SAR6. 

Following the selection of the Chief Executive, the foreign ministers of the G7 
issued a joint statement on Hong Kong on 9 May  

The EU raised its concerns on Hong Kong’s fundamental freedoms and degree of 
autonomy  with  the  Chinese  leadership  at  the  EU-China  Summit  held  on 
1 April 2022, and at a Leaders’ meeting held on 1 December 2022. 

In 2022, the European Parliament adopted two resolutions on Hong Kong, as set 
out below.  

On 20 January,  the European  Parliament  adopted  a  resolution on  violations  of 
fundamental freedoms in Hong Kong. The resolution ‘condemns in the strongest 
terms the fact that freedom of expression, freedom of association and freedom of 
the  press  are  as  severely  restricted  in  Hong  Kong  as  they  are  in  China,  and 
reiterates its solidarity with the people of Hong Kong in their fight for freedom 
and democracy’.  

On 7 July, the European Parliament adopted a resolution on the arrest of Cardinal 
Zen and the trustees of the 612 Humanitarian Relief Fund in Hong Kong. The 
resolution  ‘condemns  the  arrests  of  Cardinal  Joseph  Zen,  one  of  the  strongest 
advocates of the city’s pro-democracy movement, and of the other four trustees 
of the 612 Humanitarian Relief Fund in Hong Kong, which constitute an attack 
on the freedoms guaranteed in the Hong Kong Basic Law, including the freedom 
of religion or belief’. 

Hong Kong’s economy fell back into recession in 2022, even though travel and 
health restrictions were gradually relaxed in the  second part of the year. Hong 
Kong  remained  the  world’s  third-largest  investment  destination  and  was  the 
world’s fifth-largest trading economy. The number of EU companies decreased 
by 0.9% year-on-year (y-o-y) between June 2021 and June 2022 (to 1 600). Still, 
EU companies were amongst the more resilient since the start of the pandemic 
(with  a  decrease  in  number  of  only  0.2%  from  June  2019)  and  remained  the 
largest  non-Chinese  business  community  in  Hong  Kong.  The  EU  was  Hong 
Kong’s third-largest trading partner in goods in the 10 first months of 2022, after 
mainland China and Taiwan.  

6 Tweet on the 25th anniversary of the establishment of the Hong Kong Special Administrative Region, European External 
Action Service, 1 July 2022, available at: https://twitter.com/NabilaEUspox/status/1542747257639952384. 

3 

 
 
 
 
 
 
 
 
 
 
Hong Kong’s economy contracted by 3.3% y-o-y 7 in the first 9 months of 2022. 
The  financial  industry  and  the  trade  and  logistics  industry  faced  increased 
headwinds  during  the  year,  while  industries  with  exposure  to  tourist  spending 
continued to underperform. 

Official data from the Census and Statistics Department shows that Hong Kong 
has experienced the largest population drop since tracking began in 1961. Around 
116 600 people aged between 18 and 39 have left in the past 2 years. As a result, 
the population decreased by 121 500 – or 1.6% y-o-y – between June 2021 and 
June 2022 (95 000 due to a net outflow of residents and 26 500 due to deaths 
surpassing births)8. 

Overview of the COVID-19 situation and developments  

At the beginning of the year, the government strengthened the measures in place 
to curb the COVID-19 outbreak. These measures isolated Hong Kong from the 
rest of the world, as they included a flight suspension mechanism, a transit ban 
covering more than 100 countries and territories including France9, and 3 weeks 
of hotel quarantine for incoming travellers. The restrictions affected both daily 
life  and  the  economy,  with  limitations  on  social  life,  the  implementation  of  a 
health code, and the introduction of a digital tracing app. The peak of the fifth 
wave was reached in March, as Hong Kong recorded more than 58 000 confirmed 
cases  a  day.  After  the  pandemic  situation  gradually  improved  and  a  new 
administration  took  office  on  1 July,  the  government  took  steps  to  gradually 
return to normality.   

I. 

Political and social developments  

Political developments  

The year marked the 25th anniversary of the handover of Hong Kong from the 
United Kingdom to the PRC. Under the principle of ‘one country, two systems’, 
the economic system and way of life of Hong Kong should remain unchanged for 
50 years, as stipulated in the Sino-British Joint Declaration. On 1 July, President 
Xi Jinping indicated for the first time that the ‘one country, two systems’ principle 
could remain in force beyond 2047, under China’s comprehensive jurisdiction.  

7 Press release: Advance estimates on Gross Domestic Product for third quarter of 2021, 1 November 2021, Census and 
Statistics Department of the Hong Kong Special Administrative Region, available at: 
https://www.censtatd.gov.hk/en/press_release_detail.html?id=4917. 
8 Press release: Mid-year population for 2022, 11 August 2022, Census and Statistics Department of the Hong Kong Special 
Administrative Region, available at: https://www.censtatd.gov.hk/en/press_release_detail.html?id=5078. 
9 France was the only EU Member State affected by this measure. 

4 

 
 
 
 
 
 
 
 
 
 
 
The  Sino-British  declaration  envisaged  that  Hong  Kong  would  enjoy  a  ‘high 
degree of autonomy’ as an SAR and that Hong Kong people would rule Hong 
Kong. 

A 2021 electoral overhaul aimed to ensure that ‘patriots administer Hong Kong’. 
The first election of the Chief Executive since the overhaul took place on 8 May. 
Former police officer and Chief Secretary for Administration John Lee was the 
only  candidate  in  the  race.  The  COVID-19  restrictions  disrupted  the  electoral 
schedule.  On  18 February,  the  Chief  Executive  at  the  time,  Carrie  Lam, 
announced that the election would be postponed by 6 weeks, from 27 March to 
8 May,  citing  President  Xi  Jinping’s  instruction  to  control  the  COVID-19 
situation and invoking the Emergency Regulations Ordinance.  

After the nomination period started on 3 April, Chief Executive Carrie Lam stated 
that she would not seek re-election. On 6 April, the Liaison Office of the Central 
People’s Government in Hong Kong signalled in a meeting with political elites 
that it supported John Lee. The same day, John Lee resigned from his position as 
Chief Secretary for the Administration and declared his intention to run for office. 
On 7 April, the State Council of the Central People’s Government accepted John 
Lee’s resignation in accordance with the Basic Law. On 9 April, John Lee formed 
a campaign team and organised a virtual media event to declare his candidacy.  

In 1 day, John Lee received around 300 nominations covering all 5 sectors of the 
revamped 1 463-strong Election Committee, surpassing the required threshold of 
188,  and  close  to  his  stated  goal  of  500.  On  16 April,  the  nomination  period 
ended:  he  had  gathered  786  nominations.  Two  days  later,  the  Candidate 
Eligibility  Review  Committee  confirmed John  Lee’s candidacy,  declaring him 
the sole candidate. 

This one-person race followed the model of Macao, where there has always been 
only one candidate for the selection of the Chief Executive.  

During the election campaign, John Lee and his team failed to file copies of three 
consent-of-support  forms  within  the  time  specified  by  the  electoral  affairs 
commission, an offence carrying a maximum sentence of 6 months in prison and 
a penalty of HKD 5 000 (EUR 594.5). In August, the High Court ruled that the 
breach was a result of inadvertence and that there was no bad faith. John Lee was 
not fined.  

On 8 May, John Lee secured 1 416 votes, or 99.2% of the valid votes, from the 
members  of  the  Election  Committee.  Eight  members  voted  against  him  while 
another  four  cast  blank  ballots.  On  30 May,  he  received  a  certificate  of 

5 

 
 
 
 
 
 
 
 
appointment as the sixth-term Chief Executive from Premier Li Keqiang and on 
1 July, he was sworn in by President Xi Jinping.  

The  Chief  Executive  restructured  the  government  in  line  with  his  political 
priorities.  He  created  three  new  positions:  Deputy  Chief  Secretary  for 
Administration, Deputy Financial Secretary, and Deputy Secretary for Justice. He 
also set up a new Culture, Sports and Tourism Bureau, divided the Transport and 
Housing Bureau into the Transport and Logistics Bureau and the Housing Bureau, 
and strengthened the Home Affairs Bureau, which became the Home and Youth 
Affairs Bureau.  

Soon  after  the  new  government  was  formed,  senior  government  officials, 
including  Chief  Executive  John  Lee  and  Financial  Secretary  Paul  Chan,  led 
delegations abroad in line with China’s ‘Belt and Road’ strategy. They paid visits 
to Middle Eastern countries, in particular Saudi Arabia, and Southeast Asia. In 
November,  Paul  Chan  attended  the  G20  meeting  in  Bali  as  a  member  of  the 
Chinese delegation, while Chief Executive John Lee led a delegation to attend the 
Asia Pacific Economic Cooperation Forum in Thailand, to promote the image of 
Hong Kong, as the territory was reopening to the world. 

On  19 October,  John  Lee  delivered  his  first  policy  address  to  the  Legislative 
Council. He unveiled a series of measures on the recovery of Hong Kong, such 
as talent schemes that aim to attract 35 000 professionals annually over the next 
3 years; the set-up of an Office for Attracting Strategic Enterprises; and the launch 
of a HKD 30 billion (EUR 3.7 billion) co-investment fund to attract investment 
from strategic businesses. He also announced the set-up of dedicated teams in the 
17 mainland and overseas Economic and Trade Offices of Hong Kong, to reach 
out to businesses and professionals.  

The government waived the extra property stamp duties for foreigners who have 
resided in Hong Kong for  7  years and who are permanent residents. John Lee 
unveiled an ambitious target to reduce the waiting time for renting public housing 
from the existing level of about 6 years to about 4.5 years in 4 years’ time.  

On 18 December, the by-election for the Legislative Council Election Committee 
constituency took place to fill four seats of the Election Committee vacated by 
former members of the Legislative Council appointed to the government. This 
was  the  fourth  by-election under  the  principle  of  ‘patriots  administering Hong 
Kong’ established by the 2021 electoral overhaul. The electoral base consisted of 
1 441 people. The turnout was 90.7%. No member of the pro-democracy camp 
participated in the election. 

6 

 
 
 
 
 
 
 
 
Hong  Kong  fell  three  places  in  the  Economist  Intelligence  Unit’s  global 
democracy index, ranking 88th among 167 countries and territories. The space 
for pro-democracy political groups shrank. In December, the chairperson of the 
Civic Party, once the second-largest party in the Legislative Council, announced 
that the party would have to dissolve.  

Impact of the COVID-19 pandemic 

At the beginning of the year, the government strengthened measures to curb the 
fifth wave of the COVID-19 outbreak, implementing three-week-long quarantine 
in hotels for inbound travellers, a strict flight suspension mechanism, and a transit 
ban covering more than 100 countries and territories including France, thereby 
isolating Hong Kong from the rest of the world. Large isolation facilities were 
built with a total capacity of 40 000 beds, as the authorities pledged to implement 
a  ‘dynamic  zero-COVID  policy’  similar  to  that  of  mainland  China.  Local 
compulsory  testing  and  lockdowns  were  introduced.  There  were  cases  of 
separation of young children including babies from their parents. The government 
applied  strict  social  distancing  measures  including  online  schooling  and 
restrictions on restaurants, while sports centres, cinemas and public spaces closed.  

The EU Office wrote several letters to the government, expressing concerns about 
the impact of these policies, as it was estimated that around 10% of EU nationals 
resident in Hong Kong had left due to the strict policies.  

The  central  government  provided  guidance  in  the  fight  against  the  pandemic 
signalling that it was a matter of national security. On 16 February, media quoted 
Xi Jinping in his capacity of General Secretary of the Communist Party of China, 
instructing Hong Kong leaders to make controlling the pandemic their overriding 
priority. The government of Hong Kong set up five task forces with the central 
government.  The  local  government  invoked  the  Emergency  Regulations 
Ordinance to allow mainland Chinese medical professionals to treat COVID-19 
patients without  applying  for  a local  licence,  and  allowed  a  mainland  Chinese 
medicine to bypass the local registration mechanism.  

After 1 July, the government gradually lifted inbound travel restrictions and the 
flight  suspension  mechanism  and  reduced  the  length  of  the  compulsory  hotel 
quarantine.  In  October,  centralised  hotel  isolation  for  inbound  travellers  was 
replaced  by  home  quarantine.  Until  the  end  of  the  year,  measures  including 
medical  surveillance  and  COVID-19  tests  remained  in  place.  The  public 
gathering limit increased to 12 from 4. 

7 

 
 
 
 
 
 
 
 
Implementation of national security laws 

Law  enforcement  agencies  continued  to  make  arrests  on  national  security 
grounds. According to the Security Bureau, 236 people had been arrested under 
the NSL as of 31 December 202210. The authorities have pressed charges against 
145 individuals and 5 companies. The conviction rate is 100%. The maximum 
sentence under the NSL is life imprisonment.  

The extra-territorial dimension of the NSL started to be implemented. Starting 
from February, internet service providers blocked the website of the UK-based 
rights  group  Hong  Kong  Watch.  The  following  month,  Hong  Kong  Watch 
became the first group outside Hong Kong to have received a warning from the 
national  security  police.  In  October,  the  website  of  the  US-based  rights  group 
Hong Kong Democracy Council was no longer accessible from Hong Kong. 

Members of civil society abroad have received warnings from the authorities. In 
April, a former legislator in exile received a property restraint order, prohibiting 
him and several family members from dealing with their assets in the city. There 
was a report of an activist in exile who was warned that she could face arrest upon 
return to Hong Kong and whose family had been summoned by the police for 
questioning11. 

The  eight  publicly-funded  universities  announced  plans  to  introduce  national 
security courses. Secondary and primary schools received guidelines to remove 
publications  that  could  violate  the  NSL.  A  secondary  school  suspended  14 
students who did not attend a flag-raising ceremony12. Foreign native-speaking 
English teachers working in public schools had to sign a declaration of allegiance 
to the Basic Law.  

The colonial-era sedition law, which had remained unused until March 2020, was 
regularly  used  in  2022.  Around  one  fifth  of  the  arrests  made  by  the  national 
security police are made under this law. On 1 November, one EU national was 
arrested under the law. At a later stage, the authorities claimed that the man was 
a Chinese national and that, therefore, he was not allowed consular assistance.  

The  personal  data  ordinance  of  2021,  known  as  the  ‘anti-doxxing’  law,  was 
applied extensively. The Commissioner for Personal Data revealed that since the 
law  came  into  effect  in  October  2021,  her  office  had  issued  more  than  770 

10 https://www.info.gov.hk/gia/general/202302/14/P2023021400644.htm 
11 https://www.rfa.org/cantonese/news/htm/hk-relative-11222022024155.html 
12 https://www.thestandard.com.hk/breaking-news/section/4/195744/School-suspends-14-students-
for-%E2%80%98disrespectful-behavior%E2%80%99-during-national-anthem-and-flag-raising-ceremony 

8 

 
 
 
 
 
 
 
 
 
‘cessation  notices’  to  14  social  media  platforms,  demanding  the  removal  of 
around 3 900 messages13. 

The introduction of the announced national security legislation under Article 23 
of  the Basic  Law  has been delayed. In addition to the four offences under the 
NSL, Article 23 legislation is expected to outlaw treason, sedition, theft of state 
secrets, foreign political organisations or bodies conducting political activities, 
and political organisations or bodies of Hong Kong establishing ties with foreign 
political organisations or bodies.  

Judicial proceedings 

Judicial proceedings under the NSL continued.  

The  mass  trial  of  47  lawmakers  and  activists  who  participated  in  a  primary 
election in 2020 is the NSL case with the largest number of defendants so far. 
The  formal  trial  in  the  High  Court,  scheduled  for  early  2023,  could  last  for 
months. The prosecutor accused the 47 lawmakers and activists of ‘conspiracy to 
subversion’ under the NSL; they face up to life imprisonment. As the court denied 
bail to most of the defendants in March 2021, many of them have remained in 
custody since January 2021, in some cases in solitary confinement. Those who 
are on bail have to abide by strict conditions, including a ban on speaking to media 
or diplomats. In January and March, respectively, the court revoked the bail of 
two  defendants  after  concluding  that  their  social  media  posts  could  endanger 
national security. The  Secretary for  Justice promised to address concerns over 
delays in the prosecution of the case. In August, the Secretary for Justice ordered 
a  panel  of  three  designated  judges  under  the  NSL  to  hear  the  case,  instead  of 
granting  a  jury  trial,  invoking  the  involvement  of  foreign  elements  and  the 
personal safety of jurors and their family members.  

Two cases against the Hong Kong Alliance in Support of Patriotic Democratic 
Movements of China (the ‘Alliance’) entered the trial stage in 2022. The group 
had  organised  the  annual  candlelight  vigil  to  commemorate  the  Tiananmen 
massacre.  The  Alliance’s  former  vice-president  Chow  Hang-tung  has  been  in 
prison  since  September  2021.  In  one  of  the  cases,  the  prosecutor  accused  the 
Alliance and its core members (Chow Hang-tung, Lee Cheuk-yan, and Albert Ho) 
of incitement to subversion with a maximum penalty of life imprisonment. The 
case is with the High Court, pending final confirmation of its hearing schedule. 
The three defendants pleaded not guilty. One of the defendants, Chow Hang-tung, 

13 https://hongkongfp.com/2022/06/14/hong-kong-watchdog-told-14-social-media-sites-to-remove-3900-doxxing-items-in-8-
months/ 

9 

 
 
 
 
 
 
 
 
who  is  defending  herself,  won  a  legal  battle  to  lift  reporting  restrictions14  in 
August 2022.  

In the second case, the prosecutor accused the Alliance of not complying with a 
request to provide information issued by the national security police in August 
2021. During the hearing, the prosecutor accused the group of being a ‘foreign 
agent’  but  refused  to  identify  the  country  or  foreign  entity  involved.  The 
prosecutor redacted a large part of the information, preventing the three former 
standing committee members of the Alliance from arguing and cross-examining 
witnesses in court. The judge banned Chow Hang-tung from calling the violent 
crackdown  of  1989  the  ‘Tiananmen  massacre’.  The  maximum  penalty  is 
6 months of imprisonment.  

On  14 December,  the  High  Court  acquitted  Chow Hang-tung  of  the  charge  of 
inciting an unauthorised assembly (the 2021 Tiananmen vigil) and revoked the 
15-month imprisonment sentence handed to her in January 2021.  

In  the  NSL  and  sedition  case  involving  media  tycoon  Jimmy  Lai,  six  former 
Apple  Daily  journalists  pleaded  guilty  while  Jimmy  Lai  and  the  three  Apple 
Daily-related  companies  pleaded  not  guilty.  The  prosecutor  accused  them  of 
‘conspiracy to commit collusion with a foreign country or with external elements 
to endanger national security’ and ‘conspiracy to print, publish, sell, offer for sale, 
distribute,  display  and/or  reproduce  seditious  publications’.  The  maximum 
penalty is life imprisonment.  

After the Court of Final Appeal ruled that Jimmy Lai could hire a foreign lawyer 
to defend him in court, Chief Executive John Lee requested the National People’s 
Congress Standing Committee (NPCSC) to interpret the NSL, to see if hiring a 
foreign lawyer could go against the ‘objective’ and the ‘legislative intent’ of the 
law. On 30 December, the NPCSC adopted an interpretation of Articles 14 and 
47 of the NSL, stating that in national security cases, the Chief Executive and the 
Committee for Safeguarding National Security could decide if a defendant could 
hire  overseas  lawyers15.  This  was  the  first  interpretation  of  the  NSL  by  the 
NPCSC. Regardless of the specific case of Jimmy Lai, this interpretation of the 
NSL  gives  the  Chief  Executive  and  the  Committee  for  Safeguarding  National 
Security  the  powers  to  take  decisions  on  individual  court  cases  without  the 
possibility  to  challenge  the  decision  by  judicial  review.  This  could  potentially 
undermine the  independence of the judiciary and  thus  affect confidence in the 
rule of law. The trial of Jimmy Lai was postponed to 25 September 2023, as the 

14 Hong Kong’s Magistrate’s Ordinance bans reporting on committal proceedings, but the ban can be lifted by the magistrate 
upon request by the accused.   
15 http://www.news.cn/2022-12/30/c_1129245755.htm 

10 

 
 
 
 
 
 
 
government is amending the Legal Practitioners Ordinance following the NPCSC 
ruling.  

In a separate case, the District Court ruled that Jimmy Lai had violated the terms 
of the lease of his media company’s headquarters by concealing the consultancy 
firm operating in the same location16. The judge sentenced Jimmy Lai to 5 years 
and 9 months in prison, and fined him HKD 2 million (EUR 241 570)17.  

The case of the 612 Humanitarian Relief Fund (the ‘Fund’) involved former 
lawmaker Cyd Ho, singer Denise Ho, scholar Hui Po-keung, barrister Margaret 
Ng, 92 year-old Cardinal Joseph Zen, and the Fund’s secretary Sze Ching-wee. 
They were arrested between 10 and 12 May. At the time of his arrest, Hui was 
leaving the city to take up a teaching post at a university in the EU.  

The Fund, set up in June 2019, provided financial aid to those who were hurt or 
arrested during the 2019 protests. It ceased operations in October 2021 after the 
national security police stated that it was a subject of investigation. The Vatican 
declared  to  be  ‘following  the  development  of  the  situation  with  extreme 
attention’18.  The  court  ruled  that  trustees  of  the  Fund  had  failed  to  apply  for 
registration or exemption from registration within the specified time, an offence 
with a maximum penalty of HKD 10 000 (EUR 1 269). The five trustees received 
a fine of HKD 4 000 (EUR 490) each, while the secretary had to pay HKD 2 500 
(EUR 305). The five trustees have filed an appeal.   

The assets of Spark Alliance, another platform providing financial aid during the 
2019 protests, were confiscated. The High Court approved the seizure of HKD 70 
million (EUR 8.89 million) of ‘crime proceeds.’ The police accused the arrested 
of using the funds for other purposes than those claimed19. 

The  year  also  saw  the  first  sentencing  of  minors  under  the  NSL,  which  has 
‘alarmed’ the UN High Commissioner for Human Rights20. In October, the court 
sentenced four teenagers aged 16 to 19 to up to 3 years detention at a correctional 
facility. The four pleaded guilty for conspiring to incite subversion.  

On  30 March,  the  President  of  the  UK  Supreme  Court,  Lord  Reed,  and  his 
colleague Lord Hodge submitted their resignations as non-permanent judges from 
the Hong Kong Court of Final Appeal. Lord Reed stated that ‘the judges of the 
Supreme court cannot continue to sit in Hong Kong without appearing to endorse 

16 https://legalref.judiciary.hk/doc/judg/html/vetted/other/ch/2021/DCCC000349_2021_files/DCCC000349_2021ES.htm 
17 https://legalref.judiciary.hk/doc/judg/html/vetted/other/ch/2021/DCCC000349A_2021_files/DCCC000349A_2021ES.htm 
18 https://www.vaticannews.va/en/pope/news/2022-05/cardinal-zen-arrested-in-hong-kong-holy-see-expresses-concern.html 
19 https://www.thestandard.com.hk/breaking-news/section/4/195125/HK$70m-confiscated-from-fundraising-platform-for-
HK-protesters 
20 https://www.ohchr.org/en/press-briefing-notes/2022/10/alarm-sentencing-under-national-security-law 

11 

 
 
 
 
 
 
 
 
 
an administration that had departed from values of political freedom, and freedom 
of expression, to which the Justices of the Supreme Court are deeply committed’. 
Ten overseas judges continued sitting on the bench of the Court of Final Appeal. 
All of them have retired from their official positions.  

International responses 

On  28 May,  UN  High  Commissioner  for  Human  Rights  Michelle  Bachelet 
issued  a  statement  following  her  official  visit  to  China.  She  called  on  the 
government to ‘nurture and not stifle’ the tremendous potential for civil society 
and  academics  in  Hong  Kong  to  help  promote  human  rights  in  the  SAR  and 
beyond. She expressed worries about the arrests of lawyers, activists, journalists 
and others under the NSL21.  

In July,  the  United Nations  Human Rights Committee  in its  fourth periodic 
review under the International Covenant on Civil and Political Rights in Hong 
Kong urged Hong Kong to ‘repeal the current National Security Law and, in the 
meantime, refrain from applying the Law’. The Committee highlighted concerns 
regarding  the  lack  of  clarity  around  the  concept  of  ‘national  security’  and  the 
possibility of transferring cases from Hong Kong to mainland China (which is not 
a state party to the Covenant) for investigation, prosecution, trial and execution 
of penalties. The Committee also urged the authorities to repeal the sedition rules 
and  refrain  from  using  the  NSL  to  suppress  the  expression  of  critical  and 
dissenting  opinions.  On  the  possibility  of  enacting  new  national  security 
legislation under Article 23 of the Basic Law, the Committee urged Hong Kong 
to  ensure  that  the  legislative  process  would  be  ‘inclusive  and  transparent, 
facilitating the free, open and meaningful participation of civil society and the 
public’.  

Rights, freedoms and equal opportunities 

The NSL had a  negative impact on key parts of the legal community. Several 
lawyers known for defending human rights, including the former chair of the Bar 
Association, left after being called to meetings with the national security police 
or after being singled out in pro-Beijing media. In March, Chief Executive Carrie 
Lam  appointed the  chairperson  of the  Bar  Association to the Judicial Officers 
Recommendation Commission instead of the more outspoken nominee suggested 
by the Bar Association. Less outspoken candidates were elected to the governing 
council of the Law Society, Hong Kong’s formerly vocal solicitors’ body that 
issues  legal  recommendations  to  the  government.  A  prominent  human  rights 
lawyer lost his seat on the body. 

21 https://www.ohchr.org/en/statements/2022/05/statement-un-high-commissioner-human-rights-michelle-bachelet-after-
official 

12 

 
 
 
 
 
 
 
 
Freedom of assembly has come increasingly under threat. Organisers of rallies 
must obtain a ‘letter of no objection’ from the police if over 50 people attend. For 
demonstrations, this threshold is set at 30 people. Since 2020, gatherings of more 
than four – at times two – people have been banned on COVID-19 grounds. In 
March, a few individuals attending a small protest marking the first month of the 
Russian  war  of  aggression  against  Ukraine were  fined  for gathering  in groups 
larger than two people. For the third time in a row, the annual commemoration of 
the anniversary of the Tiananmen massacre could not take place. Police officers 
cordoned off the park and arrested six people.  

Academic freedom  has come under pressure as some media have singled out 
academics and criticised their research work based on their perceived political 
stances, forcing some of them to leave their positions. In one case, the government 
rejected  a  foreign  researcher’s  visa  application  and neither  the  scholar  nor the 
school was officially informed about the reasons behind this refusal. Scholars in 
the  field  of  political  sciences  decided  to  postpone  sensitive  research.  Several 
universities  closed  down  their  political-science  departments,  and  a  number  of 
classes on human rights are no longer included in the curricula. The number of 
students and researchers from the EU in Hong Kong decreased.  

Freedom of association and to form trade unions saw more constraints. Since 
September, trade unions have to sign a pledge to commit not to endanger national 
security. The  Legislative Council approved the creation of a dedicated post of 
Chief Labour Officer in the Labour Department to strengthen the regulation of 
trade unions. The duties of the post include amending the Trade Union Ordinance 
to prohibit people convicted of national security offences from becoming officials 
of trade unions, and implementing education plans for trade unions on national 
security22.  

The  Hong  Kong  Labour  Rights  Monitor  reported  that  at  least  62  unions  had 
disbanded and 11 union organisers had been arrested or charged23.  

The Hong Kong Journalists Association (HKJA), the largest journalist group in 
terms  of  membership,  received  a  written  request  from  the  Registry  of  Trade 
Unions under the Labour Department for an explanation of its operations. As a 
result, the association changed its internal rules to facilitate its disbandment.  

Press freedom was under continued pressure: according to the HKJA’s annual 
survey, the press freedom score representing media workers’ views was at 26.2, 

22 https://www.legco.gov.hk/en/legco-business/committees/financial-proposals-results.html?2022&20220708 
23 https://hklabourrights.org/advocacy/hong-kong-trade-union-movement-under-the-national-security-law-two-years-into-
the-authoritarian-rule/ 

13 

 
 
 
 
 
 
 
 
 
down  from  32.1  in  2021,  the  steepest  decline  since  the  association  started  the 
index24. According to Reporters Without Borders’ ranking, Hong Kong’s press 
freedom  plunged  to  a  record  low,  falling  68  places  to  148th  among  180 
locations25.  

The HKJA’s chairperson faced charges of obstructing police and causing public 
disorder while on a reporting assignment. If convicted, he could face a maximum 
prison sentence of 2 years. In April, national security police arrested a veteran 
journalist under the sedition law, on a charge of conspiracy to publish seditious 
material.  

More independent news outlets ceased their operations. In January, Citizen News 
shut  down  out  of  concern  for  the  security  of  their  staff.  In  June,  investigative 
newswire  Factwire  ceased  operations.  Mad  Dog  Daily,  Dare  Media  HK  and 
Polymer also stopped operating alongside the Cantonese programmes of Radio 
Free Asia.  

The  Foreign  Correspondents’  Club  cancelled  its  annual  Human  Rights  Press 
Awards, citing ‘legal red lines’. Starting from 2023, the Arizona State University 
will organise the prize.  

Self-censorship  increased:  a  television  channel  apologised  after  receiving 
complaints that its reporter ‘incited hatred.’ The reporter had asked government 
officials about the procedure for handling complaints against mainland medical 
professionals who came to Hong Kong to assist in controlling the pandemic26.  

A  High  Court  ruling  permitted  police  officers  to  access  journalistic  materials 
stored in the smartphones of a defendant in an NSL case. The judge ruled that the 
need to deal with crimes in the public interest overrode journalistic privilege27.  

The  High  Court  upheld  the  conviction  of  a  journalist  who  used  information 
obtained  from  a  public  registry  for  an  investigative  story  on  the  2019  social 
unrests. The Court of Final Appeal scheduled the case for January 2023.  

The government selected the journalists covering the 1 July ceremonies, where 
President Xi Jinping swore in the new Chief Executive. The Information Services 
Department  rejected  the  requests  of  at  least  13  journalists  from  9  local  and 
international media outlets. 

24 https://hongkongfp.com/2022/09/24/shrinking-news-industry-hong-kong-press-freedom-index-sinks-to-new-low-as-
media-outlets-disappear/ 
25 https://rsf.org/en/country/hong-kong 
26 https://www.rfa.org/english/news/china/hongkong-media-03182022083215.html 
27 https://legalref.judiciary.hk/lrs/common/search/search_result_detail_frame.jsp?DIS=148078&QS=%2B%7C%28CACV35
6%2F2022%29&TP=JU 

14 

 
 
 
 
 
 
 
 
 
 
Media professionals faced  pressure  as  government  officials  wrote  to local  and 
foreign media organisations to condemn reports that appeared to be critical of the 
authorities28.  

In February, the Media Freedom Coalition, consisting of the US, the UK and 19 
other  countries,  condemned  the  Hong  Kong  and  Chinese  authorities  for 
undermining press freedom29.  

The sedition law has had further impact on freedom of speech as netizens have 
been  arrested  under  the  law  following  comments  posted  on  social  media  and 
internet forums. In one case, four people managing a social media forum where 
civil servants expressed opinions anonymously  were arrested by the police  for 
inciting sedition. The police pressed charges against at least one person. Other 
internet pages of a similar nature also disappeared30.  

In June, two women were jailed for 6 and 7 months, respectively, for social media 
posts opposing COVID-19 vaccines and anti-epidemic rules31. In November, an 
autistic man received a 12-month jail sentence for inciting others to take part in 
an illegal assembly and performing an act with seditious intention32. 

Five executive committee members of the General Union of Hong Kong Speech 
Therapists  were  sentenced  to  19  months  in  prison  under  the  sedition  law  for 
‘conspiring  to  print,  publish,  distribute  or  display  seditious  publications33’. 
According  to  the  judgment,  the  illustrated  books  published  by  the  defendants 
constituted  ‘in  effect  a  brainwashing  exercise  with  children  aged  four  and 
above’34. Human Rights Watch said that the Hong Kong government ‘may have 
regularised  the  sedition  law  in  its  legal  arsenal  to  penalise  minor  speech 
offences’35.  

Two  former  editors  of  disbanded  news  outlet  Stand  News,  along  with  Stand 
News’ parent company Best Pencil, faced sedition charges. The court ruled that 
a fair trial was possible even though prosecutors failed to hand over all evidence 
gathered during the investigation36. 

28 https://www.brandhk.gov.hk/en/media-centre#clarifications 
29 https://hk.usconsulate.gov/n-2022020801/ 
30 https://www.thestandard.com.hk/section-news/section/4/244475/Four-civil-servants-held-for-social-media-'sedition' 
31 https://www.scmp.com/news/hong-kong/law-and-crime/article/3183395/taiwanese-drinks-shop-owners-jailed-7-months-
over 
32 https://legalref.judiciary.hk/doc/judg/html/vetted/other/ch/2022/DCCC000354A_2022_files/DCCC000354A_2022ES.htm 
33 https://legalref.judiciary.hk/lrs/common/search/search_result_detail_frame.jsp?DIS=147148&QS=%2B%7C%28DCCC85
4%2F2021%29&TP=RS 
34 https://legalref.judiciary.hk/lrs/common/search/search_result_detail_frame.jsp?DIS=147148&QS=%2B%7C%28DCCC85
4%2F2021%29&TP=RS  
35 https://www.hrw.org/news/2022/09/07/hong-kong-childrens-book-authors-convicted-0 
36 https://hongkongfp.com/2022/12/22/hong-kong-court-rejects-bid-by-former-stand-news-editors-to-terminate-trial/ 

15 

 
 
 
 
 
 
 
 
 
LGBTIQ+ 

The Court of Appeal rejected a bid from an LGBTIQ+ activist to recognise same-
sex marriages registered overseas37. The court said that recognising them would 
be ‘clearly contrary to the intention of the drafters of the Basic Law’. The case is 
in the Court of Final Appeal38.  

The court also granted permission to two transgender men to appeal to the Court 
of  Final  Appeal  over  a  government  policy  that  only  permitted  a  transgender 
person to change the gender on their identity document after they had completed 
full sex-reassignment surgery39. The Court of Appeal had earlier ruled against the 
two applicants40.   

An  adolescent  with  gender  dysphoria  introduced  a  complaint  with  the  Equal 
Opportunities Commission in July, asserting that the ban in schools on boys with 
long hair was discriminatory and violated the Sex Discrimination Ordinance41. In 
September, the Equal Opportunities Commission organised a mediation between 
the teenager and the school. 

Due  to  COVID-19  travel  and  social  restrictions, organisers of the  Gay  Games 
decided to co-host the games with Mexico in 2023 as the event was postponed in 
2022. The Pride parade could not be organised for the third year in a row.  

Foreign domestic workers 

Pandemic restrictions affected domestic workers, and discrimination increased. 
Cases were reported of domestic helpers not being allowed to leave employers’ 
homes  during  pandemic  waves42  and  of  helpers  not  allowed  to  return  to  their 
employers’  homes  for  fear  of  contaminating  them43.  More  generally,  cases  of 
abuse of domestic workers continue to be reported.  

In  September,  the  authorities  increased  domestic  helpers’  wages44,  which  had 
been frozen for 2 years. They also implemented measures to discourage domestic 

37 https://legalref.judiciary.hk/lrs/common/search/search_result_detail_frame.jsp?DIS=146704&QS=%2B%7C%28CACV55
7%2F2020%29&TP=JU 
38 https://legalref.judiciary.hk/lrs/common/search/search_result_detail_frame.jsp?DIS=148605&QS=%2B%7C%28CACV55
7%2F2020%29&TP=JU 
39 https://legalref.judiciary.hk/lrs/common/search/search_result_detail_frame.jsp?DIS=144139&QS=%2B%7C%28CACV18
3%2F2019%29&TP=JU 
40 https://legalref.judiciary.hk/lrs/common/ju/ju_frame.jsp?DIS=142010&currpage=T 
41 https://www.scmp.com/news/hong-kong/society/article/3185931/hong-kong-teen-challenging-school-policy-long-hair-
boys 
42 https://theinitium.com/article/20220225-hongkong-domestic-workers-who-caught-the-covid19-virus/ 
43 https://www.scmp.com/yp/discover/news/hong-kong/article/3177657/no-home-away-home-domestic-workers-terminated-
after 
44 https://www.info.gov.hk/gia/general/202209/30/P2022093000326.htm?fontSize=1 

16 

 
 
 
 
 
 
 
 
 
 
 
 
workers from changing employer so that they could not ‘take advantage’ of the 
shortage  of  workers  caused  by  the  difficulties  in  entering  Hong  Kong  due  to 
pandemic  restrictions.  Domestic  workers  could  not  visit  their  families  abroad 
under the restrictions and were the target of specific quarantine measures when 
entering the territory. Domestic workers were not included in the bonus schemes 
designed by the government to support the economy.  

Human trafficking 

In  July,  the  US  placed  Hong  Kong  on  the  Tier  2  Watch  List  for  the  third 
consecutive  year.  The  US  said  that  Hong  Kong  did  not  meet  the  minimum 
standards for eliminating trafficking although it was making ‘significant efforts’. 
The US called for enacting legislation to fully criminalise all forms of trafficking. 

In December, the government tightened the policy for removing non-refoulement 
claimants45.  The  Immigration  Department  may  expel  claimants  awaiting  court 
verdicts  once  the  court  dismisses  their  application  for  judicial  review.  It  is 
estimated that 1 200 people may face immediate removal. Human rights lawyers 
regretted  the  lack  of  consultation  with  non-governmental  organisations,  civil 
society groups, academics, the United Nations High Commissioner for Refugees 
Hong Kong, and the legal profession. 

II.  Economic developments  

Hong Kong is a very open economy (trade in goods over 300% of GDP). It is the 
fifth-largest  trading  economy  in  the  world  (2021)46  and  the  world’s  third 
destination  for  investment  flows  (2021).  It  is  the  seventh-largest  source  of 
investments globally47. 

Hong  Kong  continued  to  exercise  independent  authority  in  implementing 
commercial agreements, setting monetary policy autonomously from mainland 
China and participating in its own right in many international organisations and 
multilateral bodies. These organisations include the Financial Action Task Force 
and the World Trade Organization. Hong Kong also remained a separate legal 
jurisdiction from mainland China, especially on economic policy. It maintained 
a  separate  currency  free  of  capital  restrictions,  as  well  as  separate  regulatory 
structures to supervise companies operating in the territory. Bringing back talent 

45 https://www.scmp.com/news/hong-kong/law-and-crime/article/3202303/new-get-tough-policy-refugee-appeals-against-
deportation-orders-comes-force-hong-kong 
46 World Trade Statistical Review 2022, World Trade Organization, 
https://www.wto.org/english/res_e/publications_e/wtsr_2022_e.htm.   
47 World Investment Report 2022, United Nations Conference on Trade and Development, 
https://unctad.org/publication/world-investment-report-2022.  

17 

 
 
 
 
 
 
 
 
 
 
and  companies  to  Hong  Kong  and  strengthening  economic  integration  with 
mainland China were among the government’s main priorities.  

On finance, Hong Kong is still one of the largest capital markets in the world and 
remained connected with the Chinese financial market.     

Hong  Kong  remained  the  world’s  third-largest  investment  destination  for 
foreign  direct  investment  in 2021  according to  the  World  Investment Report 
2022  by  the  United  Nations  Conference  on  Trade  and  Development  (June)48. 
However, foreign companies scaled down their presence, and foreign and local 
talent left, mainly due to COVID-19 restrictions. As a result, the population had 
fallen by 121 500 – or 1.6% year-on-year (y-o-y) – as of June 2022 (95 000 due 
to a net outflow of residents, and 26 500 due to deaths surpassing births)49.  

Hong Kong’s economy fell into recession in 2022. After growing by 6.3% in 
2021, it contracted by 3.3% y-o-y50 in the first 9 months of 2022. The financial 
industry and the trade and logistics industry – which had performed well in 2021 
– faced headwinds during the year. In addition, industries dependent on tourism 
continued to underperform due to the absence of tourists. Hong Kong’s economy 
has yet to return to its 2018 level (pre-pandemic and before the 2019 protests).  

Inflation remained moderate,  with an annual 1.9% increase in the consumer 
price index in the first 10 months of the year51.  

The  job  market  was  stable.  Unemployment  peaked  at  5.4%  in  April  before 
gradually decreasing to 3.8% in October 2022 (closer to the 3.9% recorded at the 
start of the year)52. It was 4.5% on average in the first 10 months of 2022, an 
improvement when compared with 5.2% in 2021 but above the 3% range before 
the COVID-19 crisis.   

The trade and logistics sector contracted. This sector accounts for about 20% of 
Hong Kong’s GDP and contributed to the economic recovery in 2021. GDP from 
the import and export industry fell by 6.9% y-o-y in the first half of 2022. This 
occurred as the value of Hong Kong’s external trade in goods dropped by 4.0% 

48 World Investment Report 2022 monitoring global and regional investment trends and national and international policy 
development, United Nations Conference on Trade and Development, 9 June 2022, available at: 
https://unctad.org/webflyer/world-investment-report-2022. 
49 Press release: Mid-year population for 2022, 11 August 2022, Census and Statistics Department of the Hong Kong Special 
Administrative Region, available at: https://www.censtatd.gov.hk/en/press_release_detail.html?id=5078. 
50 Advance estimates on Gross Domestic Product for third quarter of 2022, November 2022, Census and Statistics 
Department of the Hong Kong Special Administrative Region.  
51 Census and Statistics Department of the Hong Kong Special Administrative Region, 
https://www.censtatd.gov.hk/en/scode270.html#section3.  
52 Census and Statistics Department of the Hong Kong Special Administrative Region, 
https://www.censtatd.gov.hk/en/scode200.html#section3.  

18 

 
 
 
 
 
 
 
 
 
y-o-y  to  HKD 7.97  trillion  (EUR 984  billion)53  in  the  first  10  months.  The 
situation deteriorated during the year, and external trade dropped by 11.1% y-o-y 
compared to the July to October period.  

The financial industry (23% of Hong Kong’s GDP) – the main growth driver in 
the past years – slowed noticeably in the first half of 2022 and grew by only 0.8% 
y-o-y54.   

The number of initial public offerings (IPOs) fell to 69 in the first 11 months 
from  83  in  the  same  period  in  2021,  and  the  amount  raised  by  IPOs  dropped 
70.6% y-o-y to HKD 87.8 billion (EUR 10.8 billion). In 2021, the city was the 
world’s  fourth-largest  hub  for  IPOs,  after  ranking  second  in  2020  and  first  in 
2019.  

Since the start of the year, the Hong Kong Hang Seng Index lost 15.8% of its 
value (as of 13 December), and market capitalisation on the Hong Kong Stock 
Exchange dropped by 21.4% to HKD 33.3 trillion (EUR 4.1 trillion). At the end 
of  September  2022,  Hong  Kong  was  the  world’s  seventh-largest  and  Asia’s 
fourth-largest stock market by market capitalisation as well as the largest offshore 
renminbi business hub. Average daily market turnover was down by 27.7% y-o-y 
to HKD 124 billion (EUR 15.3 billion) in the first 11 months55.  

The drop in market capitalisation and IPOs was due to a combination of global 
and regional headwinds. These included: (i) rising inflation and the tightening of 
monetary  policies;  (ii)  the  weakening  of  the  global  economy  and  geopolitical 
tensions;  (iii)  and  worries  over  the  Chinese  economy  and  the  ‘dynamic  zero-
COVID  policy’,  especially  as  mainland  Chinese  companies  dominate  Hong 
Kong’s stock market capitalisation.  

Industries  relying  on  tourist  spending  (retail,  food  and  beverage,  transport, 
travel,  hospitality)  were  still  underperforming  because  the  relaxation  of  travel 
restrictions towards the end of the year did not lead to a significant increase in 
tourist flows. In the first 10 months of 2022, Hong Kong welcomed only 330 223 
visitors56,  less  than  1%  of  the  65  million  visitors  in  2018  (78%  of  who  were 
mainland Chinese, accounting for an estimated 40% of the city’s retail sales). In 
the first half of 2022, GDP from accommodation and food services industries 

53 Exchange rate from December 2022 of 1 EUR = HKD 8.0965. 
54 Chain volume measures of GDP by economic activity - in chained (2019) dollars, Census and Statistics Department of the 
Hong Kong Special Administrative Region, https://www.censtatd.gov.hk/en/web_table.html?id=310-34501.  
55 IMF report. Detailed Assessment of Observance on Principles for Financial market Infrastructures for the People’s 
Republic of China–Hong Kong Special Administrative Region, Country Report No. 21/122, 15 June 2021, available at: 
https://www.imf.org/en/Publications/CR/Issues/2021/06/15/Peoples-Republic-of-ChinaHong-Kong-Special-Administrative-
Region-Financial-Sector-460761. 
56 Visitor arrivals to Hong Kong, Hong Kong Tourism Board, available at: 
https://partnernet.hktb.com/en/research_statistics/latest_statistics/index.html.   

19 

 
 
 
 
 
 
 
retail  sales  decreased  by  0.7%  y-o-y 

and  from  wholesale  and  retail  sales  dropped  by  16.7%  and  7.1%  y-o-y 
respectively. Their contribution to GDP accounted for only 46% and 41% of the 
level observed in the first half of 2018,  respectively. In the first 10 months of 
to  HKD 286.8  billion 
2022, 
(EUR 35.4 billion). In the first 9 months, restaurant receipts fell by 9.2% y-o-y to 
HKD 61.3  billion  (EUR 7.6  billion).  Both  were  roughly  30%  below  the  level 
recorded in 2018. The hotel room occupancy rate was 65% (vs 61% in 2021 and 
91% in 2018) due to compulsory quarantining.  

Similarly,  the  aviation  industry  and  related  industries  faced  a  challenging 
environment.  The  number  of  flights  at  Hong  Kong  International  Airport 
decreased by 5.3% y-o-y in the first 10 months to only 30% of the level observed 
in 2018. The number of passengers increased to 3 million (from 1 million in the 
first 10 months of 2021),  but this was  only 5% of the 61.8 million passengers 
recorded in 2018. Air cargo volume decreased by 14% y-o-y in the period to 84% 
of the 2018 level. Although the flight suspension mechanism was lifted later in 
2022, restrictions in place for aircrew made it difficult to increase the number of 
flights.  

The construction industry recorded a 5.3% increase in GDP in the first half of 
the year, but real estate activities dropped by 6.8% in the same period. Property 
prices and rents fell in the first 9 months, but Hong Kong remained one of the 
most expensive cities in the world57.  

The  Hong  Kong  Monetary  Authority  (HKMA)  intervened  several  times  to 
support  the  Hong  Kong  dollar  amid  rising  interest  rates  in  the  US  and  the 
appreciation of the US dollar. The aim was to ensure that the currency’s exchange 
rate did not fall below the HKD 7.85 floor of the HKD 7.75-7.85 to USD 1 band 
under the SAR’s Linked Exchange Rate System. Throughout 2022, the HKMA 
increased Hong Kong’s base rate, from 0.50% at the start of the year to 4.25% (at 
the end of November). The HKMA also made use of the SAR’s foreign currency 
reserve assets, which decreased from USD 497 billion at the start of the year to 
USD 423 billion at the end of November.   

Business environment  

COVID-19 policies were the main concern of the business community during the 
year. Political developments also had a negative effect on business sentiment. 

57 According to the Worldwide Cost of Living 2022 study by The Economist available at: 
https://www.economist.com/graphic-detail/2022/11/30/the-worlds-most-and-least-expensive-cities. 

20 

 
 
 
 
 
 
 
 
 
included 
These  developments 
implementation of the NSL, data privacy and sanctions.  

risks 

freedom  of 

to 

information, 

the 

The  business  community  advocated  for  a  roadmap  to  the  full  lifting  of 
COVID-19 restrictions. The restrictions, including compulsory testing and the 
risk of quarantine if tested positive, remained an obstacle to bringing back talent 
and  tourists.  The  partial  reopening  eroded  Hong  Kong’s  competitiveness  as  a 
place for locating regional headquarters. The situation was  exacerbated  by the 
restrictions  in  mainland  China  (including  quarantine  requirements  for  arrivals 
from Hong Kong) that affected the role of Hong Kong as a  business gateway. 
Despite  the  easing  of  quarantine  measures  in  September,  visitor  arrivals  in 
October  were  only  2.5%  of  their  pre-COVID  levels  (October  2019),  which 
hampered a full recovery. 

An  annual  survey  of  foreign  companies  in  Hong  Kong58  indicated  that,  as  of 
1 June 2022, the  number of  foreign companies  (excluding mainland Chinese 
companies)  continued  to  decrease  by  5.2%  compared  with  June  2019  (pre-
COVID levels) and by 1.5% compared with June 2021. The number of foreign 
regional headquarters dropped more noticeably (by 12.5% since June 2019 and 
3.7%  since  June  2021).  These  numbers  confirmed  anecdotal  evidence  of 
companies reducing their activities or relocating to other cities. While the number 
of non-Chinese foreign companies dropped in the survey, the number of mainland 
Chinese companies in Hong Kong had increased by 17.5% since June 2019.  

In the past 2 years, the local workforce shrank by 140 000 (as of October 2022)59 
due to a combination of emigration and foreign employees leaving the city.  

In  his  annual  policy  address  on  19 October  2022,  Chief  Executive  John  Lee 
proposed policies to support and develop the economy. To continue developing 
Hong Kong as an innovation and technology (I&T) hub, John Lee announced the 
target of attracting HKD 10 billion (EUR 1.2 billion) of investment in I&T within 
5  years.  The  SAR’s  I&T  infrastructure  will  be  expanded,  and  HKD 10 billion 
(EUR 1.2 billion) will be allocated to support the commercialisation of research 
and development by Hong Kong universities. High value manufacturing will also 
be  encouraged.  Hong  Kong’s  position  as  a  trading  and  logistics  hub  will  be 
supported  by  focusing  on  high  value-added  maritime  services  and  logistics, 
intermodal transportation and facilitating land and cross-boundary flows with the 
mainland.  Operations  at  the  airport,  which  saw  the  launch  of  a  third  runway 
during  the  year,  will  be  streamlined.  On  Hong  Kong’s  competitiveness  as  a 

58 Report on 2022 Annual Survey of Companies in Hong Kong with Parent Companies Located outside Hong Kong, Census 
and Statistics Department of the Hong Kong Special Administrative Region, 
https://www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1110004&scode=360.   
59 The Chief Executive’s 2022 Policy Address, October 2022, available at: 
https://www.policyaddress.gov.hk/2022/en/policy.html.  

21 

 
 
 
 
 
 
 
financial centre, measures announced included improving the southbound leg of 
the Bond Connect scheme60, strengthening Hong Kong’s role as the world largest 
Chinese yuan business hub, and supporting the insurance and asset and wealth 
management industries (including tax waivers for attracting more family offices 
to Hong Kong). Other priorities include developing Hong Kong as intellectual 
property and commercial arbitration centres.   

The  Northern  Metropolis,  a  development  zone  that  will  include  residential 
districts and an I&T centre, located on the boundary with mainland China will 
contribute to integrating Hong Kong with the city of Shenzhen and the Greater 
Bay Area (GBA). Infrastructure works for the Northern Metropolis have started. 
The  new  neighbourhood  will  include  the  first  ‘double  access  zone’  between 
mainland China and Hong Kong. It will contribute to moving the city’s economic 
and administrative centre of gravity to the north, while the south side of the city 
will  focus  on  tourism  and  leisure  activities.  Environmental  organisations  have 
noted that the development might affect nature reserves and wetland conservation 
parks that are important to mitigate the impact of climate change.  

On  green  finance,  Hong  Kong  issued  additional  green  bonds  during  the  year 
under the government green bond programme launched in 2018. The goal is to 
promote the local green bond market while advancing the city’s carbon-neutrality 
objective. In addition, the stock exchange launched a voluntary carbon-trading 
platform.  

On 31 October, Hong Kong presented a strategy on virtual assets61, widely seen 
as  a  move  towards  a  more  favourable  position  on  virtual  assets  and 
cryptocurrencies. A licencing regime for virtual asset service providers was put 
in place, retail transactions will be enabled, and virtual asset exchanges will be 
encouraged to establish a presence in Hong Kong.  

Government support and the fiscal situation 

Hong Kong was expected to record a fiscal deficit for the 2022-2023 financial 
year (ending in March 2023) due to increased spending and a weak economy. In 
the  2022-2023  budget,  more  than  HKD 170 billion  (EUR 21 billion)  was 
budgeted  for  COVID-19  measures62,  such  as  the  construction  of  isolation 
facilities, efforts to control the pandemic, and financial support to residents and 
companies. The  budget was announced  with  the  expectation that the economy 

60 The ‘Bond Connect’ (as some other connect schemes) allows investors to trade in mainland China bond market via Hong 
Kong (northbound) and mainland China investors to trade in Hong Kong (southbound). 
61 Policy statement: Development of Virtual Assets in Hong Kong, Financial Services and The Treasury Bureau, The 
Government of the Hong Kong Special Administrative Region, available at: 
https://www.info.gov.hk/gia/general/202210/31/P2022103000454.htm. 
62 2022-2023 Budget, Speech by the Financial Secretary, the Hon Paul MP Chan, 
https://www.budget.gov.hk/2022/eng/index.html 

22 

 
 
 
 
 
 
 
 
would  grow  by  2%  to  3.5%  in  2022  instead  of  the  contraction  that  actually 
occurred.  

In September, the Financial Secretary warned that the public deficit could reach 
HKD 100 billion (EUR 12.4 billion) for the whole financial year. This would be 
the  third  deficit  in  4  years  after  deficits  of  HKD 17  billion  in  2019-2020  and 
HKD 252 billion in 2020-2021 and a surplus of HKD 255 million in 2021-202263. 
This  is  unusual  for  an  economy  accustomed  to  fiscal  surpluses  (the  deficit  in 
2019-2020 was the first one in 15 years). 

The  deficits were largely funded by tapping into Hong Kong’s large fiscal 
reserves. The fiscal reserves amounted to HKD 681 billion (EUR 84.1 billion) in 
October, a decrease of 16.5% y-o-y and 35.2% from HKD 1 trillion in October 
2019.  Reserves  are  equivalent  to  an  estimated  12  months  of  expenditure, 
compared to 24 months before COVID-19.   

Trade policy 

The government announced in November the formal launch of negotiations of a 
free trade agreement (FTA) with Peru64. The first round of negotiations covered 
trade  in  goods,  services,  investment,  electronic  commerce,  and small  and 
medium-sized companies. In 2021, Peru was Hong Kong’s fifth-largest trading 
partner in goods in Latin America. Peru is also a member of the Pacific Alliance, 
with which Hong Kong has also been exploring the start of FTA discussions.  

During  the  year,  Hong  Kong  continued  to  seek  accession  to  the  Regional 
Comprehensive Economic Partnership through the support of its members.  

So far, Hong Kong has signed eight FTAs. These are with mainland China (June 
2003),  New  Zealand  (March  2010),  the  Member  States  of  the  European  Free 
Trade Association (June 2011), Chile (September 2012), Macao (October 2017), 
the Association of Southeast Asian Nations (November 2017, full entry into force 
in February 2021), Georgia (June 2018) and Australia (March 2019).  

Economic integration within mainland China 

In 2022, the impact of the pandemic continued to hamper the development of the 
GBA. According to the GBA  outline development plan65 released by the State 

63 Monthly Financial Results, The Treasury, The Government of the Hong Kong Special Administrative Region, available at  
https://www.try.gov.hk/internet/ehpubl_acco_monfinancial.html.  
64 Press release of the Government of the Hong Kong Special Administrative Region, available at: 
https://www.info.gov.hk/gia/general/202211/16/P2022111600587.htm?fontSize=1.  
65 Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (Courtesy Translation), available at: 
https://www.bayarea.gov.hk/en/outline/plan.html. 

23 

 
 
 
 
 
 
 
 
 
 
 
Council in 2019, 2022 was the first milestone for an optimised industrial structure 
and  coordinated  development,  with  a  reasonable  division  of  labour,  and  low-
carbon production and a low-carbon lifestyle.  

China’s  national  14th  five-year  plan,  released  in  March  2021,  reiterated  the 
objectives for the GBA and the role of Hong Kong. Hong Kong is to consolidate 
its role as an international financial centre and deepen mutual access between the 
financial markets of mainland China and Hong Kong. The five-year plan further 
mandated  Hong  Kong  to  develop  itself  as  a  centre  for  trade,  I&T  and 
transportation, including infrastructure connectivity with the GBA. International 
legal and dispute resolution services and intellectual property trading are also to 
be developed. The SAR is to facilitate bringing capital and talent to the GBA.   

In  June  2022,  the  Qianhai  Shenzhen-Hong  Kong  Modern  Service  Industry 
Cooperation Zone (in Shenzhen) announced nine Hong Kong-related facilitation 
measures  covering  areas  such  as  youth  innovation  and  entrepreneurship, 
technology development, financial services, legal services and medical services. 
Other  GAB  measures  in  the  Chief  Executive’s  policy  address  include:  (1) 
strengthening  support  to  Hong  Kong  companies  expanding  in  the  GBA;  (2) 
improving intermodal transport integration and Hong Kong’s airport connectivity 
with  the  GBA  (including  direct  transfer  facilities);  (3)  encouraging  the 
convergence of legal practices and mediation; and (4)  using more Hong Kong 
registered  drugs  and  medical  devices  in  the  GBA  (under  facilitation  measures 
implemented in 2021).  

Hong Kong is also seeking to allow insurance companies to  provide insurance 
after-sales services in GBA cities. The aim is to provide support services to GBA 
residents holding Hong Kong insurance  policies and develop mutual access  to 
insurance markets.  

III.  Relations between Hong Kong and mainland China  

General Secretary of the Communist Party of China and Chinese President Xi 
Jinping visited Hong Kong from 30 June to 1 July for the 25th anniversary of 
the handover. It was his first visit to Hong Kong since 2017 and his first outside 
mainland China since the outbreak of  COVID-19 in 2020. Xi Jinping held the 
inaugural ceremony for the sixth-term government of Hong Kong and swore in 
Chief Executive John Lee.   

On that occasion, Xi Jinping delivered a speech in which he asserted that the ‘one 
country, two systems’ principle served not just the fundamental interests of Hong 
Kong, but also of the whole country. He summarised the lessons of the past 25 

24 

 
 
 
 
 
 
 
 
 
years and underscored the importance of fully and faithfully implementing the 
‘one  country,  two  systems’  principle.  This  includes  upholding  the  central 
government’s  overall  jurisdiction,  securing  Hong  Kong’s  high  degree  of 
autonomy, ensuring that Hong Kong is administered by patriots, and maintaining 
Hong Kong's distinctive status and advantages.  

In addition, Xi Jinping put forward ‘four proposals’ for the new administration 
and society: improve governance, continue to create a strong impetus for growth, 
address people's concerns, and work together to safeguard harmony and stability. 
He  met  with  members  of  the  legislature,  the  judiciary,  the  private  sector,  and 
leaders from different sectors of society and inspected the garrison of the People’s 
Liberation Army. 

In  the  weeks  following  Xi  Jinping’s  visit,  government  and  pro-Beijing 
organisations  organised  seminars  to  study  the  1 July  speech.  The  Education 
Bureau distributed copies of the speech to schools and kindergartens.  

Ahead of the Communist Party Congress, a number of personnel changes took 
place in central government agencies in charge of Hong Kong, including in the 
People’s Liberation Army Hong Kong Garrison.  

Travel between Hong Kong and mainland China remained restricted. Chief 
Executive John Lee cancelled his first visit to Guangdong province. A visit by 
delegates  of  the  National  People’s  Congress  from  Hong  Kong  to  Xinjiang  in 
August had to be delayed due to the pandemic.  

The  election  of  the  Hong  Kong  delegates  to  the  National  People’s  Congress 
Deputies took place on 15 December. The procedures for electing the delegates, 
adopted by the National People’s Congress in March 2022, restricted the electoral 
college to the Chinese members of the Election Committee.   

In October, China recalled six officials from its consulate in the British city of 
Manchester  after  UK  law  enforcement  authorities  requested  to  waive  their 
diplomatic  immunity  over  an  incident  involving  overseas  Hong  Kong 
protestors66.  

During Chief Executive John Lee’s first visit to Beijing between 21 December 
and 24 December, President Xi Jinping and Premier Li Keqiang praised his work. 
John  Lee  also  met  with  Li  Qiang,  the  second  highest  official  in  the  Chinese 
Communist Party.  

66 https://www.thestandard.com.hk/section-news/section/47096428/248254/UK-row-ends-as-China-recalls-diplomats. 

25 

 
 
 
 
 
 
 
 
 
 
 
Mainland  China  was  Hong  Kong’s  largest  trading  partner  in  goods, 
accounting  for  49%  of  Hong  Kong’s  total  trade  during  the  first  10  months  of 
2022. In turn, Hong Kong was an important trading hub for mainland China and 
ranked as China’s fifth-largest trading partner in the first 9 months of 2022.  

Guangdong province remained a major outward-processing base for Hong 
Kong.  The  Closer  Economic  Partnership  Arrangement  with  mainland  China 
(2003)  is Hong Kong’s most substantial trade agreement. There was no major 
amendment to the agreement in 2022. The value of goods re-exported through 
Hong  Kong  from  and  to  mainland  China  accounted  for  about  90%  of  Hong 
Kong's total re-export trade value (2021). 

Hong Kong remained mainland China’s key offshore financial centre and 
investment hub. At the end of 2021, mainland China was Hong Kong’s largest 
source of inward foreign direct investment (FDI), excluding offshore centres, and 
the first destination for Hong Kong’s outward FDI, accounting for 28% and 49% 
of  total  stocks  respectively67.  In  turn,  Hong  Kong  remained  the  leading 
destination for mainland China’s FDI and a leading source of FDI to the mainland 
– accounting for more than half of the total in each direction. There were 1 395 
mainland companies listed in Hong Kong, accounting for 77% of the total market 
capitalisation.  

Hong Kong and mainland China’s capital markets are connected via the  Stock 
Connect scheme, linking the Hong Kong Stock Exchange with its counterparts 
in Shanghai and Shenzhen, and the Bond Connect mutual market access scheme 
for bond markets. This was complemented in September 2021 by the launch of a 
Wealth Management Connect scheme for the GBA. This makes it possible for 
eligible mainland Chinese, Hong Kong and Macao residents to invest in wealth 
management products distributed by banks in each other’s market.    

Hong Kong strengthened its preferential mutual access with mainland China’s 
capital market. Exchange-traded funds (ETF) were included in the Stock Connect 
scheme, allowing international investors to buy eligible ETFs in the mainland and 
mainland investors to buy eligible ETFs in Hong Kong. A Swap Connect scheme 
was also announced68. It will facilitate mutual access between Hong Kong and 
mainland China’s interbank interest rate swap markets, providing an additional 
investment and risk management tool to investors in the mainland’s bond market. 
The northbound route will be launched first, and the southbound route could come 
at a later stage. 

67 Statistical report on External Direct Investment Statistics of Hong Kong (2021 Edition), 9 December 2022: available at: 
https://www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1040003&scode=260. 
68 Joint Announcement of the People’s Bank of China, the Hong Kong Securities and Futures Commission and the Hong 
Kong Monetary Authority, available at: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2022/07/20220704-3. 

26 

 
 
 
 
 
 
 
IV.  EU-Hong Kong bilateral relations and cooperation  

High-level  visits  from  representatives  of  the  EU  institutions  continued  to  be 
prevented by the COVID-19 travel restrictions. For the third year in a row, the 
annual  EU-Hong  Kong  Structured  Dialogue  did  not  take  place.  The  EU 
attaches importance to dialogue, both on issues of concern and areas of mutual 
interest. 

The EU remained the largest foreign business community, ahead of Japan, the 
US and the UK. As of June 2022, at least 1 600 EU companies had set up business 
in  Hong  Kong.  Many  of  them  (857)  were  using  the  city  as  their  regional 
headquarters. EU businesses were  present in  many sectors, including financial 
and  business  services,  trading  and  logistics,  retail,  food  and  beverage,  and 
construction.  Based  on  the  annual  survey  on  foreign  companies  by  the  Hong 
Kong Census and Statistics Department69, the number of EU companies only fell 
slightly  (-0.2%) from their pre-COVID level (June 2019) to 1 600 companies. 
This indicates that EU companies were more resilient to local developments than 
other  foreign  business  communities  (the  total  number  of  foreign  companies 
decreased  by  5.2%  in  the  survey).  However,  EU  companies  that  have  cut  or 
relocated some activities and/or staff but remain in Hong Kong are not reflected 
in these statistics.  

In  the  first  9  months  of  2022,  bilateral  trade  in  goods  amounted  to 
EUR 22.1 billion, which is flat (-0.03%) when compared with the same period in 
2021. EU exports of goods to Hong Kong amounted to EUR 17.9 billion, while 
imports  from  Hong  Kong  totalled  EUR 4.1 billion,  resulting  in  a  surplus  of 
EUR 13.8 billion for the EU70. The EU was Hong Kong’s third-largest trading 
partner  in  goods  in  the  first  10  months  of  2022  after  mainland  China  and 
Taiwan71.  Hong  Kong  remained  a  major  platform  for  trade  between  mainland 
China and the EU. 

EU bilateral trade in services with Hong Kong grew by 25.1% y-o-y in 2021 
to  reach  EUR 34.1 billion72.  EU  imports  from  Hong  Kong  amounted  to 
EUR 12.3 billion,  and  EU  exports  to  Hong  Kong  totalled  EUR 21.8 billion 

69 Report on 2022 Annual Survey of Companies in Hong Kong with Parent Companies Located outside Hong Kong, Census 
and Statistics Department of Hong Kong Special Administrative Region, available at: 
.https://www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1110004&scode=360. 
70 Eurostat: European Union trade in goods, http://epp.eurostat.ec.europa.eu/newxtweb/mainxtnet.do. 
71 Statistical report on Hong Kong External Merchandise Trade (October 2022), 6 December 2022, available at: 
https://www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1020005&scode=230.  
72 Eurostat: European Union trade in services - annual data (provisional), 
https://ec.europa.eu/eurostat/databrowser/view/bop_its6_det/default/table?lang=en.  

27 

 
 
 
 
 
 
 
 
 
(provisional data). This resulted in a EUR 9.5 billion trade surplus for the EU. 
Preliminary data for the first half of 2022 shows strong growth in bilateral trade 
in  services  with  Hong  Kong  (+21.4%  y-o-y  to  EUR 19.3 billion)  and  a  trade 
surplus for the EU of EUR 4.7 billion73.  

Two-way  investment  remained  significant:  according  to  the  most  recent data, 
investment stocks from Hong Kong into the EU amounted to EUR 162 billion, 
and investment from the EU into Hong Kong amounted to EUR 128 billion74. 

The European Commission and Hong Kong authorities resolved several issues 
relating  to  the  trade  of  food  products.  The  transition  to  a  new  platform 
(TRACES NT) for the export of animal products from the EU was implemented. 

Operational activities planned under the EU-Hong Kong Customs Cooperation 
and Mutual Administrative Assistance Agreement and the action plan on customs 
enforcement of intellectual property rights (IPR) were hampered by COVID-
19 restrictions. Hong Kong remained the second-largest place of origin by value 
of  IPR-infringing  goods  imported  into  the  EU,  even  if  these  goods  were  not 
produced in the city. Meetings in Hong Kong with the leadership of the Customs 
and Excise Department did not take place in 2022. 

On  taxation,  the  Code  of  Conduct  Group  contacted  jurisdictions  that  were 
identified  as  relevant  in  relation  to  their  foreign  sourced  income  exemptions 
(FSIE), including Hong Kong. As a result of the dialogue and the information 
provided, Hong Kong committed to reform its FSIE regime by the end of 2022 
as it was found to be non-compliant. A bill was adopted on 14 December 2022 to 
reform  Hong  Kong’s  tax  with  regard  to  the  FSIE  regime75.  Work  on 
implementing guidance is still ongoing.  

The  sixth  annual  TAIEX  anti-trafficking  event 
took  place  on  26-
27 January 2022.  The  workshop  consisted  of  two  half-day  online  sessions, 
covering  international  trends  under  COVID-19,  combating  human  trafficking 
involving forced marriage of ethnic minorities, anti-money laundering, financial 
investigations into human trafficking and helping victims of human trafficking. 
This was the second time that the event was held online. The turnout from the 
Hong Kong side was good, with around 70 participants from several government 
departments. Seven experts from the EU addressed the workshop.  

73 Eurostat: European Union and euro area balance of payments – quarterly data, 
https://ec.europa.eu/eurostat/databrowser/view/BOP_EU6_Q__custom_457552/default/table.  
74 Eurostat : European Union foreign investment statistics, 
https://ec.europa.eu/eurostat/databrowser/view/bop_fdi6_geo/default/table?lang=en.   
75 https://www.info.gov.hk/gia/general/202212/14/P2022121400286.htm. 

28 

 
 
 
 
 
 
 
 
 
A EU-Hong Kong Engagement Support Facility was launched to engage with 
Hong  Kong.  Public  events  were  organised  on  tax  reform  (FSIE)  and 
sustainability. 

Due to COVID-19 restrictions, public diplomacy activities, such as Europe Day, 
could not be organised in the first half of the year. After restrictions eased,  in-
person activities resumed gradually.  

The EU Office organised the EU Film Festival 2022, which featured a Ukrainian 
film.  Other  events  included  beach  cleaning,  the  International  Day  Against 
Homophobia, Biphobia and Transphobia, a festival of documentary films, Speak 
Dating  (an  event  promoting  EU  languages),  the  International  Day  for  the 
elimination of violence against Women, and World Aids Day. The EU Office did 
not hold any public events on fundamental freedoms and human rights due to the 
environment created by the NSL.   

The Council Conclusions of July 2020 on Hong Kong mandated the continued 
observation of the trials of pro-democracy activists. The EU Office and the EU 
Member States in Hong Kong conducted 71 trial observations in 2022. 

29