By Denise Tsang

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The Chinese foreign ministry’s arm in Hong Kong and the city government have slammed the latest edition of a US report on the local business environment, saying it continues to “maliciously smear and make unfounded and false accusations” against the national security law.
The US State Department issued its “2025 Investment Climate Statements” report two days ago covering more than 170 countries and economies, with the section on Hong Kong prompting the rebukes on Sunday.
The foreign ministry’s office in Hong Kong said that Washington was repeating its old accusations and badmouthing the city.
“The US has hailed tariffs and sanctions, imposed restrictions on international trade, charged high fees on talent visas, and recklessly arrested staff of foreign enterprises. It has no right to comment on Hong Kong’s business environment,” a spokesman for the office said.
He noted that the United States’ trade surplus with Hong Kong had exceeded US$270 billion over the past decade, the highest among US trade partners.
“The US has repeatedly politicised and instrumentalised economic and trade issues, exaggerated the so-called risks facing foreign companies doing business in Hong Kong, and seriously interfered with and disrupted normal exchanges and cooperation between Hong Kong and the US,” the spokesman said.
“It is precisely the disrupter and destroyer of Hong Kong’s business environment.”
The Hong Kong government said the implementation of the national security law and the Safeguarding National Security Ordinance, the domestic legislation, had restored a safe and stable environment locally, not only safeguarding the rights and freedoms of the public but also making the city a more attractive and secure destination for international capital and investment.
“Various data clearly demonstrate that Hong Kong’s outstanding business environment remains highly appealing to enterprises and investors and capital from around the world,” a government spokesman said.
“Our core advantages, along with the [Hong Kong] government’s efforts in promoting economic and social development, are widely recognised by the international community.
“The biased and inaccurate claims made in the report are groundless and pale in comparison to the facts.”
The spokesman cited data to show Hong Kong’s financial strengths. He noted that since the beginning of this year, the benchmark Hang Seng Index had jumped about 30 per cent. Funds raised from initial public offerings had surged and placed Hong Kong in the No 1 spot globally, he added.
“Bank deposits have increased by around 8 per cent, reaching close to HK$19 trillion [US$2.4 trillion]. The asset and wealth management industry saw assets under management grow by 13 per cent year on year to over HK$35 trillion in 2024,” he said.
Hong Kong was on track to become the world’s largest cross-boundary wealth management centre within the next few years, the spokesman added.
The State Department report said Hong Kong remained a highly open economy with generally favourable conditions for doing business.
Hong Kong’s legal system had been viewed as a bastion of judicial independence, it noted.
“However, authorities have limited the independence of the judiciary in cases deemed by authorities to have crossed into political or national security areas,” it said.
“Rule of law risks that were formerly limited to mainland China have now increasingly become a potential concern in Hong Kong and could affect commerce and trade.”