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Speech by SJ at thematic breakout session of Ninth Belt and Road Summit (English only) (with photo)

     Following are the welcome remarks by the Secretary for Justice, Mr Paul Lam, SC, at the thematic breakout session entitled Building a Green, Sustainable and Innovative Silk Road through Hong Kong’s Legal and Dispute Resolution Services of the Ninth Belt and Road Summit today (September 11):

Distinguished guests, ladies and gentlemen,

     Good afternoon. Welcome to this thematic breakout session co-organised by the Department of Justice and the Hong Kong Trade Development Council. The theme of this session is Building a Green, Sustainable and Innovative Silk Road through Hong Kong’s Legal and Dispute Resolution Services.

     This year, the Belt and Road Initiative has entered its second and golden decade. At the third Belt and Road Forum for International Cooperation held in Beijing in October last year, President Xi Jinping announced that China will take eight major steps to support the joint pursuit of high-quality Belt and Road co-operation. The fourth step is promoting green development whereas the fifth step is advancing scientific and technological innovation. In the very recent Resolution of the Central Committee of the Communist Party of China (CCCPC) on Further Deepening Reform Comprehensively to Advance Chinese Modernization adopted at the Third Plenary Session of the 20th CCCPC in July this year, it is also emphasised that China will continue to implement the Belt and Road Science, Technology, and Innovation Cooperation Action Plan and redouble efforts to develop multilateral platforms for co-operation in green development, the digital economy, artificial intelligence and other areas.

     China’s commitment to build a green, sustainable and innovative silk road is beyond doubt. According to the China Belt and Road Initiative Investment Report published by Fudan University in Shanghai in August last year, China’s overseas energy-related engagement in the Belt and Road countries in the first half of 2023 was the “greenest” in terms of project type, since the inception of the Belt and Road Initiative. With the world facing increasing challenges from climate change, biodiversity loss and other transboundary environmental issues, these green projects are extremely timely and necessary to ensure that they will be sustainable in the long run. At the same time, it is equally important to promote the use of fast advanced technology to ensure that Belt and Road projects will result in high quality development.

     Inevitably, legal issues and even disputes may arise from the inception to the implementation of Belt and Road projects. Top qualify legal services are plainly indispensable as an essential component of risk management and also dispute resolution. I wish to make one point only: that is Hong Kong is ideal in providing one-stop legal and dispute resolution services in the present context.

     As a matter of fact, in the speech given by Mr Xiao Weiming, Deputy Secretary General of the National Development and Reform Commission of China, this morning at the opening ceremony of the Belt and Road Summit, he reiterated that the Commission supports Hong Kong to reinforce and enhance its status as the international legal and dispute resolution services centre in the Asia-Pacific region, and to assist in perfecting foreign-related legal services for the joint construction of the Belt and Road.

     To begin with, there are very good reasons why investors and participants in green projects along the Belt and Road should use Hong Kong companies in accordance with Hong Kong law with the help of Hong Kong lawyers as the vehicles or platforms for their projects. Hong Kong applies very stringent environmental, social and governance (ESG) standards which are consistent with prevailing international practice. There are three regulatory ESG reporting or disclosure requirements for Hong Kong listed companies, fund managers and ESG funds respectively. The Hong Kong listed companies are required to make disclosures on environmental and social aspects in their annual ESG reports in accordance with the ESG Reporting Guide under the Listing Rules. Under the Securities and Futures Commission (SFC) Fund Manager Code of Conduct published in 2022, fund managers are required to take climate-related risks into consideration in their investment and risk management process, and make disclosure of information in relation to climate-related risks to allow fund investors to make an informed judgment about their investment. Regarding ESG funds, the SFC also published a circular back in 2021 requiring those funds to disclose their ESG focus, ESG investment strategy and asset allocation, etc.

     Turning to projects involving innovation where protection of intellectual property (IP) rights is of crucial importance, Hong Kong has comprehensive intellectual property laws which encompass all aspects of IP protection, such as trademarks, patents, designs and copyright. The Government is committed to keeping our laws in tandem with fast-changing technological developments. In July this year, the Intellectual Property Department launched a two-month public consultation about enhancing the Copyright Ordinance (Cap. 528) to protect artificial intelligence technology development.

     In addition, Hong Kong co-operates closely with the international community in this respect. As of today, 10 international IP conventions have been applied to Hong Kong by the People’s Republic of China. As a member of the World Trade Organization (WTO), our IP protection system adheres to the standards set forth in the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights, ensuring robust protection for IP in our jurisdiction.

     On the other hand, Hong Kong has also established extensive co-operation with the Mainland in the area of IP protection. In February last year, in order to advance the development of IP in Hong Kong and Shenzhen and fostering cross-boundary innovation, the Commerce and Economic Development Bureau and the Qianhai Authority in Shenzhen jointly promulgated 16 Co-operation Measures for the Development of the Qianhai Shenzhen-Hong Kong Intellectual Property and Innovation Hub. The 16 Co-operation Measures cover a wide range of areas, including co-operation in IP protection, exploitation and transformation, exchange and study, promotion and education, and IP trading.

     Moving on to dispute resolution services, while what I am going to say should be applicable to all sorts of Belt and Road projects, I would like to focus on IP disputes to showcase Hong Kong’s ability in dispute resolution services.

     Insofar as IP litigations in court are concerned, an IP Specialist List has been established in the Court of First Instance since 2019. The Hong Kong Judiciary has issued a Practice Direction 22.1 in 2019 to outline the special procedures for resolving IP disputes, which aim at resolving IP disputes expeditiously.

     To give an example to demonstrate that the Hong Kong court is willing and able to make effective orders in intellectual property disputes with an international element, I would like to mention a landmark judgment delivered by the Honourable Mr Justice David Lok, the judge in charge of the IP list, in 2021. In that case which is known as Biozeal LLC & Ors v Nature’s Story Company Limited & Ors, the issue was whether the Hong Kong court has jurisdiction to grant an interlocutory injunction with extra-territorial effect in respect of infringement of IP rights. The court held that so long as the plaintiffs can show that the defendants’ passing-off activities are also actionable in the foreign jurisdiction concerned, and the court has personal jurisdiction over the defendants, usually by showing that the defendant is a Hong Kong resident or a company incorporated in Hong Kong, the Hong Kong court would have jurisdiction to grant an injunction to prohibit the defendants from continuing the passing-off activities in the foreign jurisdiction concerned.

     It is also significant to note that many Hong Kong judgments on intellectual property disputes may now be recognised and enforced in Mainland China. An Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong SAR (Special Administrative Region) was signed in January 2019. This Arrangement eliminates the need for re-litigation of the same disputes in both places; and offers better, more effective and efficient protection to the legitimate interests of the parties who have succeeded in litigations. Notably, the Arrangement has expressly covered judgments given in respect of certain types of disputes over IP rights. This signifies a major breakthrough as, in comparison, the international Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters concluded in July 2019 expressly excludes IP matters. Hong Kong is the first and the only jurisdiction to have such an arrangement with the Mainland with such a wide range of matters. This Arrangement, which is implemented by the relevant local ordinance in Hong Kong, has already come into effect in January this year.

     Hong Kong is also an ideal venue for resolving IP disputes by arbitration as an alternative to litigation. It is most telling that an Arrangement Concerning Mutual Assistance in Court-ordered Interim Measures in Aid of Arbitral Proceedings by the Courts of the Mainland and of the Hong Kong SAR was concluded April 2019. This Arrangement allows parties to arbitral proceedings administered by designated arbitral institutions in Hong Kong to apply to the Mainland courts for interim measures, including preservation of assets, evidence and conduct. This is particularly useful in IP arbitrations as it would allow an interim injunction be granted to maintain the status quo pending the final resolution of the arbitral proceedings.

     To complete the picture, Hong Kong also has reputable mediation services. It is evidenced by the selection of the city as the headquarters for the International Organization for Mediation (IOMed) intended to be established pursuant to ongoing negotiations between China and other state parties. It signifies a strong vote of confidence from the international community. The IOMed will be the world’s first intergovernmental organisation dedicated to providing mediation services for settling international disputes. We are hopeful that the relevant international convention relating to IOMed may be concluded soon and the IOMed may start operation within 2025.

     One of my duties as the Secretary for Justice of Hong Kong, and also the Department of Justice, is to enhance a better understanding among our friends in the Belt and Road region of the legal and dispute resolution services which Hong Kong may provide in the best interest of your jurisdictions. Apart from organising and participating in forums such as this one, we organise overseas trips to promote our legal and dispute resolution services from time to time. For example, in May this year, I led a delegation of about 30 members comprising representatives from the legal and related sectors, to visit Saudi Arabia and United Arab Emirates. At the end of this month, I will also lead another delegation to visit Brunei, Vietnam and Malaysia. I very much hope to be able to have more opportunities to share with you information concerning Hong Kong’s legal and dispute resolution services in future whether in Hong Kong, in the Mainland or your countries wherever they are.

     On this note, I wish you all a very fruitful and constructive session this afternoon. Thank you very much.

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Construction Output for the Second Quarter of 2024

     The total gross value of construction works (GVCW) performed by main contractors in the second quarter of 2024 increased by 2.3% in nominal terms over a year earlier to $68.3 billion, according to the provisional results of the Quarterly Survey of Construction Output released today (September 11) by the Census and Statistics Department (C&SD).
 
     After discounting the effect of price changes, the provisional results showed that the total GVCW performed by main contractors increased by 2.3% in real terms over the same period. GVCW in real terms is derived by deflating the corresponding nominal value with an appropriate price index to the price level in the base period of 2000.
 
     Analysed by type of construction works, the GVCW performed at private sector sites totalled $21.4 billion in the second quarter of 2024, down by 2.4% in nominal terms over a year earlier. In real terms, it decreased by 4.3%. The GVCW performed at public sector sites increased by 22.6% in nominal terms over a year earlier to $26.2 billion in the second quarter of 2024. In real terms, it increased by 23.9%.
 
     The GVCW performed by main contractors at locations other than construction sites amounted to $20.7 billion in the second quarter of 2024, down by 11.9% in nominal terms compared with a year earlier. In real terms, it decreased by 10.8%. Construction works at locations other than construction sites included minor new construction activities and decoration, repair and maintenance for buildings; and electrical equipment installation and maintenance works at locations other than construction sites.
 
     Analysed by major end-use group, the GVCW performed at construction sites in respect of residential buildings projects amounted to $20.5 billion in the second quarter of 2024, up by 18.4% in nominal terms over a year earlier. Over the same period, the GVCW performed at construction sites in respect of transport projects up by 20.2% in nominal terms to $9.2 billion in the second quarter of 2024.
 
     On a seasonally adjusted quarter-to-quarter basis, the GVCW performed by main contractors decreased by 1.8% in nominal terms and 1.9% in real terms in the second quarter of 2024 compared with the first quarter of 2024.
 
     Table 1 shows the provisional figures on the GVCW performed by main contractors in the second quarter of 2024. Table 2 shows the revised figures for the first quarter of 2024.
 
     Owing to the widespread sub-contracting practices in the construction industry, a construction establishment can be a main contractor for one contract and a sub-contractor for another contract at the same time. The GVCW performed by main contractors covers only those projects in which the construction establishment takes the role of a main contractor, but not projects in which it takes only the role of a sub-contractor. However, sub-contractors’ contribution to projects should have been included in the GVCW performed by main contractors for whom they worked.
 
     The classification of construction establishments follows the Hong Kong Standard Industrial Classification Version 2.0, which is used in various economic surveys for classifying economic units into different industry classes.
 
     More detailed statistics are given in the “Report on the Quarterly Survey of Construction Output”. Users can browse and download this publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1090002&scode=330).
 
     For enquiries about the survey results, please contact the Construction and Miscellaneous Services Statistics Section of the C&SD (Tel: 3903 6965; email: building@censtatd.gov.hk). read more

Recruitment for four civil service graduate grades to start on Saturday

     The Government will launch a joint recruitment exercise for the appointment as Administrative Officer (AO), Executive Officer II, Assistant Trade Officer II and Transport Officer II in 2024-25 on September 14 (Saturday). Applicants must submit their applications through the online application system on the Civil Service Bureau (CSB) website. The deadline for submitting applications is 11.59pm on October 4 (Hong Kong time). 

     The recruitment is open to all permanent residents of the Hong Kong Special Administrative Region (HKSAR) who meet the relevant entry requirements. Students pursuing a bachelor’s degree or equivalent and graduating in the years of 2025 or 2026 may also apply. The respective recruitment targets are set out below:
 

Posts Recruitment target
Administrative Officer 50
Executive Officer II 200
Assistant Trade Officer II 3
Transport Officer II 10

     Arrangements will be made for eligible applicants to take the Joint Recruitment Examination (JRE) tentatively scheduled to be held on December 7 in Hong Kong. 

     In addition to taking the JRE, applicants for these posts will need to have obtained:

(a) Level 2 in the two language papers (Use of Chinese and Use of English) in the Common Recruitment Examination (CRE), or other results which are accepted as equivalent (details are set out on the CSB’s CRE website at www.csb.gov.hk/eng/cre.html);

(b) a pass result in the Aptitude Test paper in the CRE; and

(c) a pass result in the Basic Law and National Security Law Test (BLNST) (degree/professional grades).
  
     Applicants who have not attained the requisite CRE and/or BLNST results may also apply. Arrangements will be made for them to take a designated CRE and BLNST tentatively scheduled for December 7 in Hong Kong. They must obtain the requisite results for their JRE answers to be processed.

     Applicants could also choose to attend the JRE in one of the seven cities outside Hong Kong (i.e. Beijing, Shanghai, London, New York, Toronto, Vancouver and Sydney). In addition, the CRE and BLNST (degree / professional grades) are also tentatively scheduled to be held on December 7 in these seven cities. The application period for the CRE and BLNST is the same as that of the joint recruitment exercise. Applicants may apply for the CRE and BLNST through an online application system on the CSB’s website from September 14 to October 4 (Hong Kong time). The details and online application system will be available on the CSB’s CRE website during the application period. Similarly, applicants who will take the CRE and BLNST outside Hong Kong have to obtain the requisite results for their JRE answers to be processed.

     Details of the joint recruitment exercise will be uploaded to the CSB’s website at www.csb.gov.hk, as well as on the HKSAR Government portal (GovHK) at www.gov.hk from this Saturday. For the recruitment of AO, relevant information will also be available on a dedicated website at www.ao-recruitment.gov.hk. Applicants must apply through an online application system on the CSB’s website. Applications submitted by post, fax or e-mail will not be accepted.

     Applicants may visit the CSB’s website for any updates of the examination arrangements. read more

Inspection of aquatic products imported from Japan

     In response to the Japanese Government’s plan to discharge nuclear-contaminated water at the Fukushima Nuclear Power Station, the Director of Food and Environmental Hygiene issued a Food Safety Order which prohibits all aquatic products, sea salt and seaweeds originating from the 10 metropolis/prefectures, namely Tokyo, Fukushima, Ibaraki, Miyagi, Chiba, Gunma, Tochigi, Niigata, Nagano and Saitama, from being imported into and supplied in Hong Kong.
 
     For other Japanese aquatic products, sea salt and seaweeds that are not prohibited from being imported into Hong Kong, the Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department will conduct comprehensive radiological tests to verify that the radiation levels of these products do not exceed the guideline levels before they are allowed to be supplied in the market.
 
     As the discharge of nuclear-contaminated water is unprecedented and will continue for 30 years or more, the Government will closely monitor and step up the testing arrangements. Should anomalies be detected, the Government does not preclude further tightening the scope of the import ban.
 
     From noon on September 10 to noon today (September 11), the CFS conducted tests on the radiological levels of 260 food samples imported from Japan, which were of the “aquatic and related products, seaweeds and sea salt” category. No sample was found to have exceeded the safety limit. Details can be found on the CFS’s thematic website titled “Control Measures on Foods Imported from Japan” (www.cfs.gov.hk/english/programme/programme_rafs/programme_rafs_fc_01_30_Nuclear_Event_and_Food_Safety.html).

     In parallel, the Agriculture, Fisheries and Conservation Department (AFCD) has also tested 50 samples of local catch for radiological levels. All the samples passed the tests. Details can be found on the AFCD’s website (www.afcd.gov.hk/english/fisheries/Radiological_testing/Radiological_Test.html).
 
     The Hong Kong Observatory (HKO) has also enhanced the environmental monitoring of the local waters. No anomaly has been detected so far. For details, please refer to the HKO’s website
(www.hko.gov.hk/en/radiation/monitoring/seawater.html).
 
     From August 24, 2023, to noon today, the CFS and the AFCD have conducted tests on the radiological levels of 83 261 samples of food imported from Japan (including 53 311 samples of aquatic and related products, seaweeds and sea salt) and 19 104 samples of local catch respectively. All the samples passed the tests. read more