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Pro-Beijing lawmakers fast-tracked the legislation, with tough punishment for acts considered "external interference," insurrection and other offenses.
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Hundreds of protesters swarmed into the legislature the night of July 1, 2019 at the height of the anti-government protests.
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Lai, 76, was arrested in August 2020 during a crackdown on the city's pro-democracy movement under the sweeping national security law enacted following huge protests four years ago.
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Three Hong Kong activists have been convicted after they refused to provide information to authorities required by national security policy.
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The city's chief executive said the mask requirement will end outdoors and indoors, but some high-risk premises including hospitals and elderly homes can still require people to wear masks.
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Hong Kong's COVID lockdown measures have devastated the city's tourism industry and disrupted business travel in a city known for being an international financial center and a business hub.
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The rescued people were part of a 30-strong crew on board a China-registered floating crane that was involved in building several offshore wind farms, according to local media reports.
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An industrial support ship operating has sunk in a storm with the possible loss of more than two dozen crew members, rescue services in Hong Kong said Saturday.
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The Chinese leader is expected to speak about Hong Kong's future at a ceremony Friday marking the return of the former British colony to Chinese rule on July 1, 1997.
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The iconic restaurant capsized in the South China Sea less than a week after it was towed away from the city.