Trade unions in Hong Kong are set to undergo rigorous examination of their links with external entities, following a proposed expansion of labor authority powers. This move aims to align their operational mandates with national security regulations.

In a statement released on Wednesday, the Labour Department outlined its planned modifications to the Trade Unions Ordinance. The key changes include managing the receipt and allocation of funds acquired from ‘external’ forces, and the unions’ connections with organizations situated in an ‘external’ location.

In the context of this proposal, ‘external’ implies locations beyond Hong Kong, mainland China, and Macau. This definition aligns with the specifications of the Safeguarding National Security Ordinance.

Compared to the existing law which solely monitors the unions’ associations with groups in a ‘foreign country’, the proposed modifications aim for a more comprehensive scrutiny.

Raymond Ho Kam-biu, the Deputy Commissioner for Labour (Labour Administration), stated that the proposal’s amendment aims to bolster national security without unnecessarily broadening the scope.

With the amendment, trade unions will need to secure approval from the Registrar of Trade Unions to accept funds from external entities. This process involves declaring the money’s source and intended use. Once approved, the funds cannot be utilized in designated local elections.

Furthermore, the proposal stipulates that trade union officers must get approval from the chief executive before assuming a position in a non-affiliated organization located externally.

This article provides valuable insight for potential investors and those interested in the evolving landscape of Hong Kong’s trade unions. However, it is not intended to be an investment guide.