Hong Kong's legislature has unanimously passed a sweeping new national security law, known as Article 23, which critics and analysts warn will align the city's security laws more closely with those used on the Chinese mainland and deepen an ongoing crackdown on dissent. The lengthy bill, which introduces 39 new national security crimes, was rushed through the city's opposition-less Legislative Council with unusual haste at the request of city leader John Lee and debated over just 11 days.

The new legislation, which comes into effect on Saturday, adds to the already powerful national security law that was directly imposed by Beijing on Hong Kong in 2020 following huge and sometimes violent democracy protests the year before. The 2020 law has already transformed Hong Kong, with authorities jailing dozens of political opponents, forcing civil society groups and outspoken media outlets to disband, and prioritizing patriotism in the once freewheeling city.

Chief Executive John Lee described the passage of the new law as a "historical moment for Hong Kong," stating that they had "completed a historical mission, lived up to the trust of the country and did not let the Central government down." China and Hong Kong's leaders argue that the new laws are needed to "plug loopholes" and "restore stability" following the 2019 protests, and that their legislation is similar to other national security laws around the world.

However, critics counter that what China's Communist Party views as national security offenses are far broader and more sweeping, often ensnaring political criticism, dissent, and even business activity that would not be criminalized elsewhere. Legal scholars and business figures have warned that the broad definitions and grave penalties within the new law will likely result in further crackdown on civil society and could threaten the city's once robust exchanges of information for businesses, including its vaunted financial sector.

Eric Lai, research fellow at Georgetown Center for Asian Law and an expert on Hong Kong's legal system, expects a "chilling effect" to deepen across society. "The business community would be particularly affected by the new 'theft of state secrets' and 'espionage' offenses," Lai said. The new legislation has outlawed "unlawful acquisition," "possession," and "disclosure of state secrets," alongside the crime of "espionage," with offenders facing up to 20 years in jail in the most serious circumstances.

The definition of what counts as a state secret is broad, ranging from secrets concerning national defense and diplomatic activities to any major policy decision on affairs and the economic or social development of both Beijing and Hong Kong. Hung Ho-fung, sociology professor at Johns Hopkins University, said that when social and economic affairs are treated as state secrets, "this is to say it can include anything."

The law also labels the involvement of "external forces" - a byword for foreign governments and organizations - as an aggravating factor that warrants tougher sentencing. Amnesty International China director Sarah Brooks said the legislation "delivered another crushing blow to human rights in the city," adding that the authorities have enacted this law "in the blink of an eye, killing off any remaining shred of hope that public outcry could counter its most destructive elements."

The passage of the new national security law comes as Hong Kong's government is embarking on a high-profile campaign this year to revive the city's business credentials after the political crackdown - combined with nearly three years of strict coronavirus controls - sparked an exodus of local and international talent. However, the uncertainty surrounding the new legislation has raised concerns among the business community.

Johannes Hack, President of the German Chamber of Commerce in Hong Kong, said that while many German businesses remain committed to the city, they would like to see Hong Kong maintain its unique position that includes free flow of capital and a common law court system. "[The law] is making it a bit hard to make the case for our German shareholders that this is Hong Kong and this is different from mainland China," he said.

Former pro-democracy lawmaker Emily Lau expressed her worry that what made Hong Kong distinct is fast fading. "We want Hong Kong to prosper, we are part of China. I've never disputed that," she told CNN. "But we are different from the rest of China. But the difference is getting less and less, which is very sad."

As the new national security law takes effect, Hong Kong's business community and civil society face an uncertain future, with critics warning that the legislation will further erode the city's freedoms and align it more closely with the Chinese mainland.