The sentencing of Jimmy Lai Chee-ying marked a pivotal moment for Hong Kong. The conviction and sentencing in the case send a clear and unequivocal message: National security and social stability are the bedrock of genuine freedom, sustainable prosperity, and enduring investor confidence. The judgment explains in full detail that the judicial decision has nothing to do with Lai’s political views or beliefs. The judges merely focused on safeguarding the rule of law and protecting the very foundation on which Hong Kong thrives as an international financial and business hub.
The judicial process was conducted strictly in accordance with common law principles, full due process, and independent judicial adjudication. Following a fair and open trial, the court found Lai guilty of conspiracy to collude with foreign or external forces and conspiracy to publish seditious publications. The court repeatedly stressed that Lai was prosecuted not for his opinions, but for sustained, organized acts that endangered national security. He abused press freedom to incite hatred toward the central and Hong Kong Special Administrative Region governments, glorify violence, deepen social division, and openly lobby foreign governments to impose sanctions on China, including the HKSAR. Such acts are not part of legitimate journalism or peaceful expression. They are plotted attempts to invite external intervention, undermine national sovereignty and disrupt public order — acts prohibited by national security laws in any competent jurisdiction, including major Western countries. The verdict was evidence-based, impartial, and fully consistent with judicial independence.
The significance of this ruling becomes even clearer when viewed against the chaos and instability that plagued Hong Kong during the social unrest of previous years. Prolonged disruptions, road blockades and rising radicalism severely harmed daily life and economic activities. I still recall a frank discussion with a consul general from a major Western country during that turbulent period. He made a practical and business-focused point: Prolonged unrest and uncertainty make it impossible to reassure global investors that Hong Kong is a stable, reliable and predictable destination for long-term capital. Investors need stability above all else. Without it, confidence fades, projects are delayed, and capital flows elsewhere. This is not ideology; it is the unvarnished reality of global investment.
The conviction of Lai is a victory for the rule of law, a safeguard for stability and a catalyst for Hong Kong’s long-term prosperity. It clarifies legal boundaries, upholds judicial independence and makes clear that acts endangering national security will not be tolerated
It was to address this critical vulnerability that the Hong Kong SAR National Security Law was enacted in 2020. Its purpose is not to restrict legitimate freedoms, but to end violence, restore order, block external interference, and ensure a healthy environment for development and openness. The law targets only four categories of serious offenses: secession, subversion, terrorist activities, and collusion with foreign or external forces. It does not affect peaceful expression, normal business operations, international exchanges, nor the free flow of capital, information, and talent. On the contrary, it provides the legal stability that allows freedoms to be safely exercised and businesses to plan with confidence. Lai’s case perfectly illustrates this balance: The law holds accountable those who endanger national security, while protecting the vast majority of law-abiding residents, journalists, entrepreneurs, and investors.
The strongest endorsement of the law’s positive impact comes from the international business community. The 2026 AmCham Hong Kong Business Confidence Survey shows a strong rebound in international trust: 94 percent of respondents expressed confidence in Hong Kong’s rule of law; 92 percent of multinational corporations said that they have no plans to move their regional headquarters out of Hong Kong; and 74 percent reported that the national security laws have had no negative impact on their daily operations. These figures reflect real corporate decisions, not abstract speculation. Global businesses recognize that stability has returned, risks have been contained, and Hong Kong’s institutional strengths remain intact.
The link between the Lai verdict and business confidence is direct and undeniable. International investors choose jurisdictions with legal certainty, public safety and a level playing field. By upholding the conviction and meting out proportionate penalties, Hong Kong’s Judiciary reaffirms a fundamental principle: No one — regardless of personal wealth, media influence, or external connections — is above the law. This equal application of the law strengthens judicial credibility, reduces investment risks and enhances Hong Kong’s appeal as a safe haven for international capital amid global uncertainty. The concerns once raised by diplomats and business leaders over social instability have been effectively addressed.
Critics with ideological agendas have deliberately distorted the national security laws and Lai’s case, claiming they undermine freedoms and harm the business climate. Such claims contradict facts and are rejected by the real-life experience of international companies in Hong Kong. Every sovereign state enforces laws against sedition, treason, espionage, and foreign collusion. Many Western jurisdictions have broader and stricter national security legislation. Hong Kong’s approach is fully consistent with international norms and practice. Legitimate expression, journalism and commercial activities remain fully protected. Only acts that threaten national security and public order are prohibited.
Hong Kong’s unique strength lies in its role as a key bridge connecting the Chinese mainland and the world. It combines a common law system, free capital movement, low taxation, professional excellence and deep integration with the mainland market. It remains the preferred platform for global investors to access the mainland and for mainland enterprises to go global. The national security laws and the lawful verdict in Lai’s case have not weakened these advantages — they have protected and strengthened them. With stability restored, Hong Kong can better focus on developing financial services, fintech, green finance, shipping, trade and innovation, deepening integration into the Guangdong-Hong Kong-Macao Greater Bay Area, and supporting national high-quality development and high-level opening-up.
In short, the conviction of Lai is a victory for the rule of law, a safeguard for stability and a catalyst for Hong Kong’s long-term prosperity. It clarifies legal boundaries, upholds judicial independence and makes clear that acts endangering national security will not be tolerated.
Empirical experience following the implementation of the national security laws has proved that the rule of law and the national security laws have not obstructed openness and freedom in Hong Kong — they have made them possible.
The author is a member of the Legislative Council of the Hong Kong Special Administrative Region.
The views do not necessarily reflect those of China Daily.
