Japanese companies in Hong Kong see a business environment marred by deteriorating "political stability," a new survey shows, just as local authorities prepare to impose more comprehensive national security legislation. The overall business climate in the city has either "worsened" or "worsened significantly" from a year ago, according to 32.4% of respondents to the biannual survey conducted by three Japanese organizations -- the Japan External Trade Organization, the local Japanese business chamber and the consulate general. The ratio increased by more than 20 points compared with the previous survey published at the end of last July... The poll was conducted before Hong Kong Chief Executive John Lee declared on Tuesday that his government was kicking off a public consultation on a new security law that would be even more far-reaching than the existing one... Ryoichi Ito, secretary-general of the local Japanese commerce chamber, who sat next to Amano, said the business group is trying to figure out the details of the new law before stating a definitive opinion...

The European Chamber of Commerce in Hong Kong told Nikkei Asia in a statement that it is "studying the consultation with great interest," while it vowed to pay "particular attention to issues potentially concerning the core values that make Hong Kong an attractive place in which to do business." The chamber's spokesperson raised "strong protection for fundamental rights, the rule of law, an independent judiciary, and a free flow of information."

The American chamber in Hong Kong did not respond to a request for comment by the time of publication...