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Pedestrians walks past a government-sponsored advertisement promoting a new national security law on June 30, 2020 in Hong Kong, China.Billy H.C. Kwok | Getty Images

BEIJING — The central Chinese government passed a sweeping new security law for Hong Kong that took effect just hours before the 23rd anniversary of the city's handover from the U.

K to China on Wednesday.

The National Security Law strengthens Beijing's control on Hong Kong, a semi-autonomous region with greater democratic freedoms and alignment with international business standards than the mainland. That special status has made Hong Kong an attractive hub for many international companies wanting to tap the Greater China market.

Under the new legislation, many of the activities carried out by protesters in Hong Kong over the last year become punishable by law. What began as largely peaceful mass protests against a controversial extradition bill more than 12 months ago turned into violent clashes with police. 

An official English translation of the new law stipulates that a person who acts with a view to "undermining national unification" of Hong Kong with the mainland faces punishment of up to lifetime, depending on the severity of the offense. Financial support for such activities is also a crime. 

The security law also laid out in broad strokes what could be deemed offenses by "terrorist organizations" and those who collude with foreign entities. 

The text also says those who are not permanent Hong Kong residents can be deported if they break the law. 

VIDEO6:4606:46What is Hong Kong's relationship with China?CNBC Explains

Under Chinese President Xi Jinping, Beijing's decision to move ahead with the law comes despite strong criticism from Europe and the U.S. 

EU Council President Charles Michel said Tuesday that "We deplore the decision," according to a Reuters report. 

U.S. President Donald Trump's administration has also taken steps toward eliminating Hong Kong's special trading status with the world's largest economy, beginning with restrictions on defense exports and access to high technology products. 

Other aspects of the law indicated how Beijing would strengthen its hand in Hong Kong's affairs.

A national security advisor designated by the central government will sit in on meetings of a Committee for Safeguarding National Security of the Hong Kong Special Administrative Region, the law said.

Hong Kong will also promote national security education through schools and media, according to the law. 

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  • Beijing
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TikTok will exit Hong Kong because of Chinas new security law

All those efforts aren’t necessarily helping, though. When asked about it by Fox News, US Secretary of State Mike Pompeo said that the US is “certainly looking at” banning Chinese social media apps like TikTok. In addition, the US Senate recently asked intelligence services to probe TikTok to see if it presents any kind of a national security risk. TikTok was recently banned in India, along with dozens of other Chinese apps.

Facebook recently said it would “pause” responses to data requests from Hong Kong, despite the new security law that gives police the power to order companies to remove content. However, Apple, which still has a large presence in China, complied last year with communist government demands to remove a Hong Kong protest-tracking app.

ByteDance has continued to try to distance itself from China and by exiting Hong Kong now, is avoiding the appearance of any potential conflicts. TikTok previously said that it has 150,000 users in the city and a source told Reuters that it’s a money-losing region for the company.

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