New direction in virus fight

In the past month, the number of confirmed COVID-19 cases worldwide has continued to rise, with the death toll exceeding three million. Fortunately, the epidemic situation in Hong Kong has been generally stable. The number of local cases has remained at a very low level and the fourth wave of the epidemic is evidently under control. Taking into account our enhanced anti-epidemic capabilities and with the Government’s vaccination programme moving forward steadily, I announced a new direction in fighting the pandemic a fortnight ago with the aim of restoring the normal operation of society and people’s daily lives as far as possible while keeping the epidemic situation effectively in check. However, the success of this roadmap for fighting the pandemic still depends on everyone’s efforts.

 

The latest epidemic situation

 

As of April 25, the total number of confirmed cases in April was 269; over 80% of them were imported cases. The number of daily local cases has remained at low single digits, with zero local cases reported on four occasions, indicating that the epidemic situation is generally under control. No large infection clusters, which we were worried about due to the increase in people’s social activities during the Easter holiday, have appeared. However, the detection of the first confirmed case involving the N501Y mutant virus strain in the community in mid-April is deeply concerning. The Centre for Health Protection has remained vigilant by strictly implementing contact tracing, testing and quarantine measures. So far, the mutant virus strain has not spread widely in the community, but we will continue to closely monitor the situation.

 

Anti-epidemic efforts

 

Having regard to the easing of the epidemic situation, we have suitably adjusted social distancing measures (eg reopening outdoor play facilities for children, swimming pools and beaches, increasing the number of people allowed in cinemas, performance venues and theme parks, etc) as well as the quarantine requirements for people arriving in Hong Kong from overseas places (eg shortening the compulsory quarantine period for people arriving from low-risk places from 21 days to 14 days). Meanwhile, we have continued to make use of our enhanced capabilities to control the epidemic through strict and targeted measures. In the past month, applying the strict rule that all people in a building or in a workplace have to undergo compulsory testing if one confirmed case is found in the building or the workplace, we have issued compulsory testing notices to around 150 premises. We have also carried out restriction-testing declaration operations on five buildings, as well as conducted blitz enforcement actions on the compulsory testing notices issued to four buildings, and imposed a fixed penalty of $5,000 and/or issued a compulsory testing order to more than 20 people who have failed to comply with the notices.

 

Our anti-epidemic strategy and its effectiveness are well-demonstrated in our handling of the cluster of cases found in Oi Fai House (Block 3) of Yau Oi Estate in Tuen Mun. The first case in the building was found on April 7. On the same day, we issued a compulsory testing notice to require more than 900 residents in the building to undergo compulsory testing. On April 14 and 21, we issued compulsory testing notices to the building again with a view to achieving zero infection. Since other cases were found in the same building, we have arranged more than 200 residents to undergo compulsory quarantine at quarantine centres since April 8. Among the nine cases found in the building, except for the two cases with unknown sources of infection (which were found on April 7 and 8), the remaining seven cases were identified through our contact tracing of confirmed cases or during compulsory quarantine or compulsory testing and were isolated for treatment immediately. This shows that our actions have successfully cut the chain of transmission and prevented a large-scale outbreak that might have been caused by these infected persons. The testing and quarantine requirements have undoubtedly brought some inconvenience to the residents, but they are crucial in preventing the spread of the virus in the community. As far as I know, the residents have been very co-operative. Basically, all of them took the test within the timeframe specified in the compulsory testing notices and underwent quarantine. I would like to express my heartfelt gratitude to all of them for fulfilling their civic responsibility and demonstrating the spirit of fighting the virus together.

 

As for preventing the importation of cases, we have not let down our guard either. We tightened the flight suspension mechanism for passenger flights in mid-April. Since mutant virus strains were detected in some of the imported cases from India, Pakistan and the Philippines, we have invoked the mechanism to prohibit all passenger flights from these places from landing in Hong Kong for a period of 14 days since April 20.

 

The major measures introduced are set out below chronologically:

Date

Event

April 1

The Government announced the arrangement of two designated flights departing London, United Kingdom on April 21 and 28 for the orderly return of Hong Kong residents there. They would be required to undergo multiple tests on specified dates and compulsory quarantine at a specified quarantine facility for 21 days.

April 5

Following the arrival of a new batch of BioNTech vaccine in Hong Kong, the Government resumed the administration of BioNTech vaccine to members of the public.

April 9

The Government included Australia, New Zealand and Singapore to the low-risk group of specified places and the compulsory quarantine period for persons arriving in Hong Kong from these three places was shortened to 14 days.

April 12

The Chief Executive chaired a press conference to announce a new direction in fighting the pandemic, including adjusting various anti-epidemic measures with “vaccine bubble” as the basis and appealing to members of the public to get vaccinated sooner rather than later so that Hong Kong can gradually return to normality.

April 14

The Government tightened the passenger flight suspension mechanism and introduced in parallel a new place-specific flight suspension mechanism. Under the new mechanism, if a total of five or more passengers among all flights from the same place were confirmed by arrival tests for COVID-19 with the N501Y mutant strain within a seven-day period, all passenger flights from that place will be prohibited from landing in Hong Kong for 14 days and that place will be specified as an extremely high-risk place.

April 15

The Government announced that the COVID-19 Vaccination Programme will be expanded to cover persons aged 16 to 29 starting from April 23, rendering the city as one of the very few places in the world where all adults are covered in the vaccination programme.

April 20

The Government invoked the place-specific suspension mechanism to prohibit all passenger flights from India, Pakistan and the Philippines from landing in Hong Kong for 14 days and restrict all persons who had stayed in these places from boarding for Hong Kong.

April 21

The Hospital Authority resumed the special visiting arrangement in eight infirmary hospitals.

 

New direction in fighting the pandemic

 

With the fourth wave of the epidemic under control, coupled with the enhancement of our anti-epidemic capabilities in various aspects and the roll-out of the vaccination programme, I consider that it is an appropriate time to adopt a new direction in fighting the pandemic. In response to the aspirations of various sectors and members of the public to resume normal lives as soon as possible, I propose four “Rs” in our new direction in fighting the pandemic:

 

Return to Normality Refrain from “stop and go” approach Reinforce infection control measures in a targeted manner Reiterate the need for concerted community efforts

 

Specifically, the Government will adjust social distancing measures with “vaccine bubble” as the basis. For instance, when staff members and customers of specified premises have already received vaccinations and other anti-epidemic requirements are met, the operation restrictions will be relaxed. The convenience brought about by vaccinations can also be applied to cross-boundary travel, including shortening the quarantine period of persons arriving in Hong Kong from low-risk places. The proposal has taken into account the protection offered by vaccines, while at the same time aims to provide incentives for vaccination, such that more members of the public will get vaccinated and an immune barrier can be built for Hong Kong as soon as possible. I express my heartfelt thanks to the representatives of various trades for participating in discussions with relevant departments in the past two weeks and putting forward constructive and practicable measures for implementation. Details will be announced by the Government in due course.

 

It should be emphasised that, while the goal of the new direction in fighting the pandemic is to return to normality, it is not tantamount to the relaxation of anti-epidemic measures. Our goal is to formulate targeted measures instead of taking a “one size fits all” approach. Taking the experience over the past month as an example, we adopted stringent testing and quarantine measures decisively and promptly when cases with unknown sources were found in the community, while we immediately invoked the place-specific passenger flight suspension mechanism to mitigate the risk of the importation of the new mutant virus strains. As far as the people affected are concerned, the measures under the new direction in fighting the pandemic may be more stringent than those in the past. Nevertheless, for the protection of the entire community, I appeal for their understanding and co-operation.

 

As with all other places around the world, the most feasible way for Hong Kong to get through the epidemic is for people to get vaccinated. Compared with the other places, Hong Kong has sufficient capacity in terms of vaccination. What is needed most now is the concerted efforts of members of the public. Continuing to adopt a “wait and see” attitude will not give you and your family members the needed protection, or the conditions for Hong Kong to return to normality.

 

Protect yourself and others, get vaccinated!

 

Chief Executive Carrie Lam issued this article titled A New Direction in Fighting the Pandemic on April 26.

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HK’s freedoms not absolute: SJ

Both the Basic Law and the Hong Kong Bill of Rights guarantee the freedom of expression, peaceful assembly, procession and demonstration as fundamental rights. At the same time, they also recognise that these rights are not absolute and are subject to restrictions, which are necessary for respecting the rights of others and protection of public order.

 

There have been occasions where government premises were unlawfully occupied by protesters that disrupted the Government’s operation, it was not all that long ago when this happened during the protests in June and July 2019. There have also been times when peaceful events developed rapidly into violent ones and people resorted to unlawful means in carrying out their activities. To ensure the safety and security of those visiting or working in government premises concerned, and the normal functioning of the offices, it is necessary from time to time for the Government to implement controls on the public meetings and processions that may be allowed to be held on its premises.

 

One example of such controls is the permission scheme that requires applications to be made for use of the East Wing Forecourt of the Central Government Office for holding public order events. The legal challenge against the constitutionality of the permission scheme has come to an end with the Court of Appeal in its recent judgment upholding the constitutionality of the permission scheme and its ruling that it did not infringe the fundamental rights to freedom of expression and assembly (Cheung Tak Wing v Director of Administration [2020] HKCA 124).

 

In the decision, the Court of Appeal has enunciated important legal principles that sets out the proper limits of the exercise of such freedoms:

 

(1) The Government has proprietary rights in respect of its properties: The Government as the owner of its premises has the right to manage its premises and to implement measures to ensure that premises can be used for its proper purpose and function. The Government has a duty to take precautions so as not to compromise the premises’ proper function. The court also remarked that it was a misnomer to call the forecourt the Civic Square, and it was wrong to perpetuate the mistaken characterisation of the primary function of the forecourt by attributing symbolic significance to it as a public place for protest or demonstration.

 

(2) The Government owes a duty to care as to the safety and well-being of those working at government premises: The Government has a duty to ensure that the activities on its premises would not compromise its normal and effective operations, as well as the safety of those visiting and working there.

 

(3) The Government needs to strike a balance between the need for public order and public safety and the orderly operation of the offices, and the need to facilitate public expression of opinion: The balance should be made by reference to the particular facts and circumstances of the case in question.

 

(4) The relevant factors when striking the balance include:

 

(a) The nature of the public meetings and processions, and the degree disruptions to the ordinary and peaceful use of the premises.

 

(b) The availability of alternative and equally effective means, manners and forms of exercise of freedom of expressions and demonstrations. This is relevant as there is no freedom of forum for exercising the said right.

 

The Court of Appeal has now affirmed that while the Government has a duty to facilitate public expression of opinions at or near its premises, it must also ensure this does not compromise the normal and effective operation and public safety including the safety of the other users of the premises.

 

The Government always respects and attaches great importance to the rights and freedoms (including the freedoms of assembly, of procession and of demonstration) protected under the Basic Law. However, it should be noted that the Court of Final Appeal in its judgment of Kwok Wing Hang & Others v Chief Executive in Council & Anor [2020] HKCFA 42 and Leung Kwok Hung v Secretary for Justice & Anor [2020] HKCFA 42 pointed out that: “None of these rights is absolute but may be subject to lawful restrictions. As will be apparent from its wording, the freedom of assembly, procession and demonstration under Article 17 of the Bill of Rights is not absolute but is subject to lawful restrictions including the interests of public safety, public order and the protection of the rights and freedoms of others.” Members of the public, in exercising their rights and freedoms, should take heed of the important legal principles.

 

Secretary for Justice Teresa Cheng wrote this article and posted it on her blog on April 26.

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HK talent to flourish in Belt-Road

This event, supported by the Government’s Professional Services Advancement Scheme, was scheduled to be held months earlier, but like many other events had to be put back due to the pandemic. I am glad that the event is held today, and hope it is yet another sign that we are entering a new stage in Hong Kong’s fight against COVID-19. Incidentally, I announced in a press conference earlier this week that we are probably coming to the end of the fourth wave that has haunted us since November last year. Our multipronged strategy has worked to minimise imported cases, while our redoubled testing and contact tracing efforts have suppressed the spread of the virus. With the improved situation, as well as our enhanced capability on several fronts, I have mapped out a new direction in our anti-epidemic efforts, leveraging on the concept of vaccine bubble.

 

As you are aware, and I hope many of you by now have taken the jab, the Government’s vaccination programme is well under way. Taking into account the private clinics which have partnered with us, we have literally thousands of locations where every Hong Kong resident aged 30 and over, and soon to be lowered to 16 and over, can take their jab. The steady supply of vaccines as well as the infrastructure we have put in place to administer vaccination are indeed the envy of many places. What we need to do now is to accelerate the vaccination progress. In this connection, I would like to thank the construction industry, architects included, for its strong support in the fight against COVID-19, including putting in place stringent measures in construction sites and arranging regular testing for staff and workers. I look forward to the same support from the industry in terms of vaccination. For your good health and that of your family, friends and loved ones, I encourage you to get vaccinated as soon as possible. Our flourishing future depends on a healthy and safe Hong Kong.

 

Every cloud has a silver lining. In fighting the pandemic together, I believe we have come to a much fuller, and more personal, appreciation of the Belt & Road’s Five Connectivities: policy, infrastructure, trade, finance and people – and not merely acknowledging them as individual elements but appreciating their inspired interaction. This forum will focus on those mutually beneficial interactions. It will also showcase the success of Belt & Road construction projects since this far-reaching, multilateral and multi-level initiative began eight years ago. Later this morning, our Belt & Road Commissioner will provide a considered stock-taking of our Belt & Road measures. That timely review comes as we look ahead together for the wide-ranging opportunities within the Belt & Road.

 

If the past is any indication, the future looks good. To date, China has signed more than 200 co-operation agreements with some 140 countries and 31 international organisations under the Belt & Road Initiative. Last year, despite the pandemic, the contract value of newly signed overseas engineering projects of our country came in about US$255 billion. China’s non-financial outward foreign direct investment in 58 Belt & Road economies rose 18%, year on year, to nearly US$18 billion. As one Mainland official has pointed out, these encouraging figures are attributable to China’s quick economic recovery from COVID-19, the country’s contribution to the global economic recovery, and the solid foundation for co-operation laid by both China and Belt & Road economies over the past years.

 

Hong Kong has much to look forward to in the Belt & Road Initiative, thanks to our “one country, two systems” framework and deepening economic integration with the Mainland. Our country’s 14th Five-Year Plan, approved by the National People’s Congress last month, supports the continuing enhancement of our status as an international hub for finance, trade and logistics. The plan also looks to Hong Kong as a centre for innovation and technology, for high-end, high value-added services, and as an East-meets-West hub for art and cultural exchange. Let me add that Hong Kong’s singular advantages have placed us in the enviable role of facilitator and promoter between China and the countries of the Belt & Road.

 

Our professional services sector is among our core strengths in Hong Kong’s active participation in the Belt & Road Initiative. Indeed, the construction industry has a long tradition of taking its expertise out to the world. Hong Kong construction professionals were involved in railway construction in Southeast Asia as far back as the 1980s. Our architectural, design and construction professionals have long adopted international standards in terms of design, technology, operations, management and other protocols and quality-assurance standards.

 

I know that the Hong Kong Institute of Architects has always been encouraging its members to outreach and implement their ideas in the international arena. In particular, the institute established an award for projects outside Hong Kong under its annual awards since 2000, and noted that more and more projects from Belt & Road economies were shortlisted in recent years. The institute also promoted the Hong Kong-style Architects’ Professional Full Services to Mainland China and Belt & Road economies in recent years through sharing sessions. Today’s forum is another example of the institute’s efforts. I am delighted to say that you have my Government’s full support in this regard. Not only is this forum supported by the Government’s Professional Services Advancement Support Scheme, many government bureaus and departments are also joining various professional bodies in supporting today’s event.

 

So, yes, we have the talent and the experience to flourish in the Belt & Road’s continuing progress. Having confronted professional and personal hardship since these past two years, it is time now for us all to turn crisis into opportunity. I recall State Councillor and Foreign Minister Wang Yi speaking last June at the Video Conference on Belt & Road International Cooperation in Beijing. He reaffirmed China’s readiness to work with international partners to make the Belt & Road a model of co-operation, health, recovery and growth. He promised a bright future through Belt & Road collaboration in infrastructure and co-operation among the economies and peoples of the Belt & Road. I trust you are ready to seize the opportunities there for Hong Kong and for all of you.

 

No less promising is our backyard: the Guangdong-Hong Kong-Macao Greater Bay Area. To take full advantage of the boundless prospects the Greater Bay Area offers, my Government has long been liaising with Mainland authorities, working to promote mutual recognition of professional qualifications and to realise preferential policies. The effort is paying off, I am pleased to say. Hong Kong construction companies and professionals can now start businesses and provide services in the Greater Bay Area through a simple registration system. And we are exploring the possibilities of having Hong Kong companies bid, exclusively, on select construction projects in the Greater Bay Area. Beginning as a pilot project, it can only show us the way ahead – to a hugely expanded market eager for Hong Kong’s expertise.

 

We will also explore the creation of an Architect Responsibility System in project management throughout the Greater Bay Area. It will be good for the built environment of the Greater Bay Area, good for Hong Kong and for the professions including the architects.

 

Hong Kong will actively participate in both the Belt & Road Initiative and the Greater Bay Area development, and I can tell you that the central government is looking forward to our contribution, putting trust in our system, our economy and the sectors, businesses and professionals who have made Hong Kong the global bridge between the Mainland and the business world.

 

We have already submitted the local legislation to implement the amended Annex I and Annex II to the Legislative Council for scrutiny. Under the improved system, a reconstituted Election Committee will play a central role, with 1,500 members from five sectors broadly representing Hong Kong. In the professions sector, 30 seats will be reserved for the architectural, surveying, planning and landscape sub-sector, ensuring that your voices will continue to be reflected. And for the first time, the Hong Kong Institute of Architects’ President together with the chiefs of other professional institutions will be made ex-officio members of the Election Committee.

 

I look forward to your staunch support for the improvement to the electoral system. It will ensure the faithful implementation of “patriots administering Hong Kong” and “one country, two systems”, which is very essential for the long-term stability and prosperity of Hong Kong. In terms of immediate effect, it will put an end to the chaotic situation in the Legislative Council that we have seen in recent years. I have made it clear that my Government will continue to invest in infrastructure despite the fiscal stringency. Our annual capital works expenditure in the coming years will exceed HK$100 billion, while total construction output is expected to rise to about HK$300 billion. That will create more than 300,000 employment opportunities. With the Legislative Council returning to normal, I am confident that we will be able to proceed with these projects in an efficient manner.

 

Chief Executive Carrie Lam gave this speech at the Hong Kong Institute of Architects Belt & Road Forum 2021 on April 16.

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Security education day fulfilling

As stipulated in Article 14 of the National Security Law of the People’s Republic of China adopted by the Standing Committee of the National People’s Congress (NPC) on July 1, 2015, April 15 each year shall be National Security Education Day, which aims to enhance citizens’ awareness of national security and to safeguard national security. This year marks the sixth National Security Education Day; it is also the first National Security Education Day held after the implementation of the Law of the People’s Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region (National Security Law). To celebrate this momentous occasion, the Committee for Safeguarding National Security of the Hong Kong SAR chaired by me has organised a series of events under the theme Uphold National Security, Safeguard Our Home, including today’s opening ceremony and seminars. I would like to express my heartfelt gratitude to all of you for your presence here today. My particular thanks go to the Liaison Office of the Central People’s Government in the Hong Kong SAR and the Office for Safeguarding National Security of the Central People’s Government in the Hong Kong SAR for their support.

 

National security is the cornerstone of national stability and the bedrock of people’s well-being. Therefore, safeguarding national security is the top priority for every country around the world. An inalienable part of the People’s Republic of China (PRC), the Hong Kong SAR bears the constitutional responsibility to safeguard national security. Like all compatriots in the country, Hong Kong residents share the obligation to safeguard national sovereignty, unification and territorial integrity. Regrettably, since Hong Kong’s return to the motherland, local legislative work for safeguarding national security has been demonised by people with ulterior motives, turning Hong Kong into a loophole of national security, which not only endangers the safety of Hong Kong people, but also that of the people of the whole country. Together with the influence of external forces and propaganda by local radicals through the Internet, national security risks have gradually surfaced in Hong Kong. For over one year since mid-2019, violence has raged across the city, with the emergence of acts close to terrorism and the spread of messages advocating Hong Kong independence, self-determination and mutual destruction in our society. A small group of anti-China disruptors created chaos in the Legislative Council and tried to seize power through election, posing great security risks to the Hong Kong society and our political system. Such acts, if not stopped in time, will endanger national sovereignty, security and development interests.

 

The central authorities resolutely responded to the unprecedented crises faced by the Hong Kong SAR from the national level. On June 30 last year, the Standing Committee of the NPC enacted the National Security Law which was added to Annex III of the Basic Law and came into effect in Hong Kong by way of promulgation. The legislation has established robust legal and enforcement mechanisms for safeguarding national security in the Hong Kong SAR, and has effectively restored stability in our society and helped Hong Kong get out of the shadow of violence.

 

National security and political security are inseparable. To achieve genuine national security, governance must be firmly held in the hands of patriots. With the approval of the amended Annex I and Annex II to the Basic Law by the Standing Committee of the NPC on March 30 this year, the Hong Kong SAR Government submitted the local laws for improving the electoral system of the Hong Kong SAR, ie the Improving Electoral System (Consolidated Amendments) Bill 2021, to the Legislative Council for scrutiny yesterday. This has actually made today’s National Security Education Day even more fulfilling. The two major measures taken by the central authorities this year have stabilised the overall situation of Hong Kong and laid an important and solid foundation for the comprehensive and accurate implementation of the principles of “one country, two systems”, “Hong Kong people administering Hong Kong” and a high degree of autonomy.

 

It is the constitutional responsibility of the Hong Kong SAR to safeguard national security. To enable the Hong Kong SAR to comprehensively and accurately perform its duties in safeguarding national security, as Chairperson of the National Security Committee, I would like to make a pledge on the following:

 

First, we will take forward the work of safeguarding national security in Hong Kong according to the concept of overall national security, and ensure that the related work is fully understood and implemented at full steam and in a holistic manner, covering various policy areas of the Hong Kong SAR, including the domains of politics, society, economy, culture, technology, the Internet, finance, and public health.

Second, we will engage the whole community in our efforts to raise Hong Kong people’s awareness of national security and the obligation to abide by the law, so as to make it everybody’s responsibility to safeguard national security. In organising today’s National Security Education Day, much effort has been spent on public publicity so as to widely disseminate the message of safeguarding national security. Events including mosaic wall activities in the community and schools, and a public exhibition are organised this year, with the aim of bringing the message of national security to the community and schools.

Third, public officers have to play a more important role in safeguarding national security. The Hong Kong SAR Government is fully committed to establishing a sound system for public officers to swear to uphold the Basic Law and swear allegiance to the Hong Kong SAR of the PRC, as well as taking necessary measures in accordance with Article 9 of the National Security Law to strengthen communication, guidance, supervision and regulation over matters concerning national security handled by schools, social organisations, the media and the Internet. We have also set up bodies which will shoulder the major responsibility of safeguarding national security, including the National Security Department of the Hong Kong Police Force, the National Security Prosecutions Division of the Department of Justice and the Secretariat of the National Security Committee. As part of this year’s programme, the training schools of a number of disciplinary forces in the Hong Kong SAR Government will hold open days for the public, with a view to demonstrating our determination and law enforcement capabilities.

As the leading figures of Hong Kong, many of you play the important role of administering Hong Kong and are tasked with the major responsibility of safeguarding national security, including promoting the improvement of the national security framework and the electoral system of the Hong Kong SAR, and implementing “patriots administering Hong Kong”. I firmly believe that so long as we work together and strive ahead to adhere to the original purpose of the Basic Law by comprehensively and accurately implementing the principles of “one country, two systems” and “patriots administering Hong Kong”, Hong Kong will be able to maintain its long-term prosperity and stability and contribute to the prosperity and success of our country.

 

This is the English translation of Chief Executive Carrie Lam’s speech delivered at the National Security Education Day 2021 opening ceremony on April 15.

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SJ shares arbitration insights

Riding on the success of “Why Hong Kong is Irreplaceable” in February which acknowledged Hong Kong’s strength is premised on infrastructure, talents and business opportunity, the Asian Academy of International Law (AAIL) co-organised with the Department of Justice a series of “Why Hong Kong” webinars. I was honoured to be invited to deliver a keynote speech at the first webinar, “Why Arbitrate in Hong Kong”, on March 31. There were around 600 registrations from about 55 jurisdictions. The full event is now available for review at AAIL’s website. I would like to take this opportunity to share with you some of the insightful and valuable views of the panel speakers.

 

The opportunities in the Greater Bay Area development, highlights the importance of intellectual property (IP) rights protection and efficient resolution of IP disputes. As pointed out by one of the speakers, IP rights are generally territorial and in some countries IP rights are not arbitrable owing to public policy considerations. In advising her client to choose Hong Kong as a seat of arbitration, the speaker pointed out that the arbitrability of IP rights in Hong Kong as set out in the Arbitration Ordinance is an attraction. Parties prefer to arbitrate rather than litigate in open courts disputes involving IP, so as to benefit from the confidentiality afforded to the technology and know-how from being exposed to the public.

 

China, being the second largest economy in the world, provides ample business opportunities. The availability and enforceability of interim measures play an important role in the choice of seat of arbitration. Hong Kong, with its unique advantages under the “one country, two systems”, reached the interim measures arrangement with the Mainland, which allows parties to arbitral proceedings that are seated in Hong Kong and administered by one of the six arbitral institutions to apply to the Mainland courts for such measures. Hong Kong is the only jurisdiction outside the Mainland where this is possible.

 

Third party funding is often used in investment and commercial disputes. The speakers pointed out that in Hong Kong, third party funding is not only useful to fund impecunious companies to pursue their claims but also generally welcomed by other enterprises. The regulatory framework in the Code of Practice for Third Party Funding of Arbitration sets out the practices and standards with which third party funders are to comply and serves to encourage its use but also provide necessary protection to parties that receive funding. In that way, third party funding serves not just as a tool for access to justice but also for business opportunities when it is engaged to ease the cash flow problems of going concern, especially in this difficult times of the economy due to the COVID-19 pandemic.

 

In the last session of the webinar in investment arbitration, the speakers pointed out that there are abundance of talents experienced in the construction field. It is particularly relevant to the Belt & Road initiative as most of the projects are construction-related. Being a gateway for investment to and from China, Hong Kong and the Mainland signed the CEPA (Mainland & Hong Kong Closer Economic Partnership Agreement) Investment Agreement which provides for promotion and protection of investments between the two jurisdictions. It is noteworthy that investment mediation is the only available mechanism for resolving investment disputes under the CEPA Investment Agreement. Hong Kong has been active in promoting the use of mediation to resolve investment disputes and providing training in this area with a view to building up a team of investment mediators specialised in handling international investment disputes in Asia. In April, there will be the “Why invest in Hong Kong: Current Opportunities” and investment opportunities will be discussed.

 

One of the new initiatives in Hong Kong is to look at how to provide a level playing field compared with other popular arbitral seats which allow some form of contingency fee structures. The Law Reform Commission has undertaken a consultation to examine the recommendation by its sub-committee of permitting lawyers to use outcome related fee structures for arbitration taking place in and outside Hong Kong.

 

Finally, I noted that the speakers shared their experience in a common theme: neutrality – the neutrality in arbitral tribunals, supervising courts and the legislative framework. If I may echo the words of one of the speakers, the Arbitration Ordinance provides an important gate-keeping function in terms of neutrality. It is kept up to date and amended to implement developments quickly. Last month an amendment was made to reflect and implement the Supplemental Arrangement Concerning Mutual Enforcement of Arbitral Awards reached between Hong Kong and the Mainland in November last year and that will reinforce our strength as an arbitration friendly jurisdiction.

 

The 14th Five-Year Plan continues to support Hong Kong to enhance its status as an international financial centre and establish itself as a centre for international legal and dispute resolution services in the Asia-Pacific region. There is also clear policy support for Hong Kong to develop into an international innovation and technology hub and a regional intellectual property trading centre, etc. In order to avail ourselves of this opportunity, Hong Kong will continue to capitalise on its uniqueness of being the only common law jurisdiction in China by actively promoting the use of Hong Kong law as the governing law of contractual disputes. The importance of Hong Kong law in deal-making is widely recognised and we will further explore the advantages of it in the upcoming webinar “Why Use Hong Kong Law” to be held in May.

 

It is promising to see that the Hong Kong International Arbitration Centre and the Law Society of Hong Kong have also organised a series of webinars to promote Hong Kong. With collaboration and synergy, the bodies in Hong Kong will work together to further promote the interests of Hong Kong in the legal and dispute resolution sector.

 

The shift of global economy is without a doubt moving to Asia. It is inevitable that more transactions generate more disputes. Ideally, disputes should be dealt with in the region where the transactions took place, for costs and efficiency but also for the understanding of the culture within the region. It is encouraging to see that other parts in Asia have been developing in the provision of arbitral service. Through fair, open and clean competition, and collaboration, all those involved in the provision of services will be able to bring about benefits for the users of arbitration. I believe that Hong Kong’s continued improvements as a hub for international legal, deal-making and dispute resolution services in the Asia-Pacific region will create positive synergies and generate more deals.

 

Secretary for Justice Teresa Cheng wrote this article and posted it on the Department of Justice website on April 11.

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CS hails new electoral system

The fourth wave of the COVID-19 epidemic has lasted for some time. To our great relief, the number of local confirmed cases has remained at low levels in recent days. The Government’s multi-pronged strategy of continuously enhancing our anti-epidemic measures and preventing the importation of cases has proven effective.

 

Apart from keeping social distancing measures in place and mounting an extensive promotion of testing, we have specifically strengthened the manpower in contact tracing as this is a particularly crucial measure in cutting the chains of viral transmission.

 

The Department of Health’s Contact Tracing Office has redoubled its efforts in speeding up the process of identifying close contacts. Their sterling efforts in contact tracing in the gym cluster last month have significantly helped in suppressing rebounds within a number of days. This was a remarkable success.

 

For this, I must thank all those who have helped, including some 200 colleagues seconded from the disciplined services to the Contact Tracing Office. Their experience in investigation has helped improve the precision and efficiency in contact tracing. Their deployment also frees up the medical and nursing staff for other professional duties.

 

Our vaccination programme is also well under way, offering every Hong Kong resident, aged 30 and above, a choice of vaccines.

 

Many experts have openly called on members of the public to get vaccinated. They stress the necessity for a considerable proportion of the population to receive vaccination in order to achieve herd immunity, which would in turn help Hong Kong get through the epidemic.

 

I urge you to take advantage of this city-wide free vaccination programme – for yourself and your family, friends and loved ones, and of course for the good of Hong Kong.

 

Despite the continuing challenges of the pandemic to our economy, Hong Kong is on the path of recovery. The economy is expected to rebound in the second half of this year. For that, we should thank our “one country, two systems” framework, our role as the business bridge between the Mainland of China and the rest of the world, as well as the tremendous and historic opportunities in our integration into the overall development of our country.

 

The recent passage of China’s 14th Five-Year Plan lends support to the Guangdong-Hong Kong-Macao Greater Bay Area and our pivotal role in it. It also supports Hong Kong’s development as a global innovation and technology hub, an international aviation centre and an exchange centre for arts and culture between the Mainland and the rest of the world.

 

Central to that promising future of Hong Kong is the National Security Law, enacted by the National People’s Congress Standing Committee last June. Its impact on restoring law and order has been telling.

 

Violence has all but disappeared. Advocacy of Hong Kong independence has subsided. Stability has been restored.

 

This means that you can now move about without fearing for your personal safety. It means, too, that you are free to express your views openly, while being respectful of the rights of others and not undermining national security.

 

Our rule of law and judicial independence remain solid and strong. So, too, are our basic rights and freedoms, including the freedom of speech, of the press, publication, association, assembly, procession and demonstration.

 

In short, Hong Kong has largely reverted to the safe, rational, inclusive and vibrant society it has long been celebrated for. The Hong Kong that we all know and love.

 

Safeguarding national security, after all, is essential to the good workings of any economy, any nation. National security is internationally understood and accepted. China is no different.

 

April 15, that is next Thursday, is the first National Security Education Day after the National Security Law has been implemented in Hong Kong.

 

Those of you who use the Cross-Harbour Tunnel will have seen the big banner, with its clear blue-sky background and its message “Uphold national security, safeguard our home.” It is part of a Hong Kong-wide publicity and public education campaign organised for the first time by the Committee for Safeguarding National Security of the Hong Kong SAR.

 

The campaign features a series of activities to raise our citizens’ awareness about national security. Equally important, it is designed to deepen our understanding of the National Constitution, the Basic Law and national security.

 

Apart from an opening ceremony and seminar on April 15, the programme includes an open day of the academies of our disciplined services, an exhibition at the City Gallery in Central that will run through May 2, as well as other public events.

 

Going hand in hand with national security is Hong Kong’s electoral system. In recent years, radical and violent elements attempted to hijack the political process in Hong Kong, seriously disrupt the vital work of the Legislative Council, advocate independence and sow chaos in society. These seriously undermined the stability and prosperity of our city.

 

An electoral system that cannot safeguard “one country, two systems” and our constitutional order is a defective system. That is why, on March 30, the National People’s Congress Standing Committee amended Annex I and Annex II to the Basic Law.

 

The objective in doing so is clear: to ensure that Hong Kong is administered by patriots – by Hong Kong people who champion “one country, two systems” and wholeheartedly respect and support the constitutional order of the Hong Kong Special Administrative Region.

 

Patriotism, no less than national security, is an accepted international norm. Indeed, political security is the foundation of national security. Without it, Hong Kong’s long-term prosperity and stability can never be achieved.

 

A refashioned Election Committee will play an important role in the new system. The committee will comprise 1,500 members from five sectors. Beyond its current role of electing the Chief Executive, the committee will elect some legislators as well. It will also nominate candidates for the Legislative Council elections.

 

In doing so, it will make LegCo more broadly representative of Hong Kong. Indeed, the number of seats at LegCo will expand from 70 to 90.

 

Let me emphasise that the electoral changes will not impinge on the rights of Hong Kong residents to vote or to stand for election. Candidates from any political background faithful to the constitutional order can stand for election and, in accordance with the law, be elected.

 

Articles 45 and 68 of the Basic Law of the Hong Kong SAR, which stipulate respectively the ultimate aim of the selection of the Chief Executive and the election of all LegCo members by universal suffrage, remain intact.

 

If approved by the Executive Council, the Government will introduce the bill on the amendments into LegCo next Wednesday – April 14. We sincerely hope that we can secure LegCo’s passage by the end of May.

 

That would set in motion three major elections in the coming year: for the Election Committee in September, for LegCo in December and for the Chief Executive next March.

 

In short, we are committed to moving ahead, to ensuring a government that works for the people of Hong Kong, to building a thriving economy, an engaged community and a rewarding future for us all.

 

I am confident that the new electoral system will bring the executive authorities and the legislature closer together. It will allow them to put aside their differences and build consensus for the good of Hong Kong. For all of us.

 

Chief Secretary Matthew Cheung gave these remarks on RTHK’s “Letter to Hong Kong” programme aired on April 11.

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