For the first time since 1970, Hong Kong has lost its position as the world’s freest economy, according to the Fraser Institute’s Economic Freedom of the World Index. Singapore has now claimed the top spot, largely due to concerns over Hong Kong’s eroding judicial independence following the implementation of the national security law in 2020. This decline has affected Hong Kong’s reputation as a global financial hub, with its courts increasingly seen as influenced by the Chinese government.

The shift in Hong Kong’s standing highlights the connection between economic freedom and political stability, with concerns about China’s increasing control over the city’s legal system. These changes have contributed to reduced investor confidence and concerns about the future of its business environment.