The Declining Accountability and Transparency of Hong Kong’s Legislative Council: how the ‘Heart of Democracy’ impacts the Business Environment
Executive Summary
Hong Kong’s Legislative Council (LegCo) – once the cornerstone of accountability and transparency in Hong Kong’s governance system – has had its role dramatically curtailed in the period between 2020 and 2025.
Since the electoral reforms imposed from Beijing in 2021, as well as the systematic disqualifications of opposition candidates and elected Members, LegCo has failed to effectively exercise accountability and uphold transparency in a time of dramatic change in Hong Kong’s politics.
The introduction of the 2024 Safeguarding National Security Ordinance and the failure of the 2025 Registration of Same-sex Partnership Bill reflect these trends. Both bills faced a LegCo that rushed through vital procedures and sought to suppress public consultation. This reduced the space for both Members and the public to raise questions and criticisms of these important issues set to become law.
A further trend has been the declining number of critical questions being asked by Members in LegCo, which reflects the lack of any meaningful opposition representation or activity within LegCo in general. At the time of publication, LegCo’s response to the Wang Fuk Court fire has been relatively muted, with a notable lack of activity on key Council mechanisms.
Another notable development has been the disbanding of LegCo’s Sanctions Compliance Subcommittee. This has reduced oversight on sanctions at a critical time when Hong Kong’s role in supporting companies evading international sanctions on Russia has come under increased scrutiny.
More broadly, transparency within LegCo is declining. Notably, Member’s names are no longer recorded in official meeting minutes, making it harder for citizens to follow and scrutinise the activities of different Members. While Member’s registers of interests are still being published, these show an increasing trend of senior LegCo members holding significant business interests in Mainland China.
The decline in LegCo has had a ripple effect on the political and economic life in the city more broadly, including on the business environment. By rushing through legislation such as the Safeguarding National Security Ordinance, LegCo has hastily put in place a number of laws with far reaching consequences for Hong Kong’s business environment – with little consideration for public debate, external engagement and criticism.
As LegCo’s important role in accountability and transparency declines, so does Hong Kong’s ability to uphold the good governance and rule of law that has helped the city become a leading international trade and financial centre. LegCo is no longer an effective backstop against a growing raft of national security focussed initiatives. This in turn creates a long-term chilling-effect for Hong Kong’s business environment, creating heightened risks and raising operational costs for international businesses.
This policy paper recommends that foreign governments and foreign businesses closely monitor and keep up–to-date on LegCo and other developments in Hong Kong, make up-to-date risk assessments and analyses, and update business and travel advisories. Further, when engaging LegCo Members, international interlocutors should recognise the influence that Beijing now exerts over such Members.
Policy Recommendations
For Foreign Governments
Recognise that LegCo is no longer an independent branch of Hong Kong government and lacks sufficient democratic accountability or ability to meaningfully scrutinise the government;
Monitor and report on LegCo’s declining accountability and transparency in the US State Department and the UK FCDO’s regular reports on Hong Kong;
Continue to monitor and raise concerns about legislation that is passed by LegCo;
Update the Hong Kong Travel and Business Advisories regularly, paying particularly close attention to Beijing’s reach in Hong Kong and increasingly aligning Hong Kong and Mainland China guidance;
Engage with Hong Kong LegCo Members as if they are proxies of Beijing, considering the topics and tone and policy recommendations accordingly;
Raise the erosion of LegCo’s accountability and transparency at high-level meetings with representatives from Beijing and Hong Kong, continuing to demand compliance with international human rights laws and standards, and publicly supporting human rights in Hong Kong;
As Hong Kong decreases in accountability and transparency, demand that the resumption of UK-HK Financial dialogue be dependent on a return of accountability and transparency;
Provide more grants and other funding to people in and from Hong Kong who continue to do pro-democracy work, including academics, journalists, and civil society.
For Foreign Businesses
Conduct and renew risk assessments and take relevant safety measures (like asking staff to use burner phones and separate servers) in Hong Kong as though it were a Mainland Chinese city;
Take increased precaution when planning projects or investments in Hong Kong, considering that it is an unreliable jurisdiction where risks may suddenly increase and vary due to the illiberal legislative environment.