China's new security law in Hong Kong has caused an American-British advisory member that handles the country's sovereign-wealth fund to relinquish her post amid fears of persecution over the new legislation.

New security law

DeAnne Julius wrote in a letter dated July 10 addressed to the chairman of the fund saying she was regretfully stepping down from her position at the International Advisory Council of China Investment Corp., as reported by The Wall Street Journal.

Julius noted that recent developments in mainland China and Hong Kong, which has caused several international governments to criticize Beijing over its actions, had made it challenging for her to maintain her position in authority.

The new security law was passed by Beijing in Hong Kong last month that gave Communist Party officials the power to punish anti-government movements and violence severely. It also enabled them to regulate international media and online platforms more easily to monitor foreign activities within the city.

Julius is among the first top-position Western advisers involved with a Chinese establishment to relinquish her post due to concerns of retaliation from the Chinese government. The decision comes amid the anxiety of Hong Kong businesses operating under the new security law.

Since then, however, Beijing has reassured that the new legislation would increase the city's security. A recent survey, however, showed that most of the 183 respondents felt the law made them less secure, and it also revealed 76 percent expressed their severe doubts. In contrast, less than 50 percent noted it would adversely affect their businesses.

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The president of the American Chamber of Commerce in Hong Kong, Tara Joseph, said the figures clearly indicated the amount of concern and worry that the new legislation has given the citizens of Hong Kong. She also noted that many of the survey respondents said the law was not in-depth, adding more cause for concern.

Caution over illegal activities

According to CNN, China is calling the primary election held in Hong Kong by the democratic opposition illegal under the new legislation. The announcement came only two weeks after the new controversial law was passed in the city.

Over the weekend, more than 600,000 citizens took part in the voting, which aimed to cut down on the number of pro-democracy political candidates during the city's September elections.

Beijing's new security law has made secession, subversion, terrorism, and conspiring with foreign forces illegal since it was passed on July 1. Government officials stated the legislation would only affect a small number of Hong Kong residents as critics worry over the law's vague and general details.

Beijing's top representative in Hong Kong, the Liaison Office, issued a statement on Monday saying the primary election broke the law, suggesting the hundreds of thousands of people that participated to be punishable by the government.

The office said the event was an apparent and severe provocation of the electoral system implemented within the city and severely affected the fair and just elections of the Legislative Council.

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