It rejects criticism of the move. According to National Security Adviser Robert O'Brien, Secretary of State Mike Pompeo wouldn't be able to certify Hong Kong's high degree of autonomy, which would lead to sanctions on both.
Foreign Minister Marise Payne joined her counterpart in the UK Dominic Raab, and in Canada Francois-Philippe Champagne, in saying the laws would be contrary to the legally binding Sino-British Joint Declaration of 1984. Calls have started for protests across the territory and democracy activists are planning "street action".
What is in the statement?
Referring to Beijing's 1984 agreement to grant Hong Kong, a former British colony, substantial autonomy through 2047, Mr O'Brien told CBS's Face the Nation that "it looks like they're violating that agreement".
The statement came as the USA continues to scale up its condemnation of the proposed law, with Pompeo on Friday calling Beijing's plan to bypass Hong Kong's legislative processes a "death knell" for the territory's autonomy.
Henry Tang, a member of the Standing Committee of the Chinese People's Political Consultative Conference, said the legislation was "beneficial" for the business environment as it brings stability and strengthens the rule of law.
Relations in between both Washington and also Beijing are now stressed over profession conflicts and also the coronavirus pandemic.
"Like a lot of Hong Kongers we are anxious about what is going to happen". President Trump has actually additionally considered in, stating the United States would certainly respond highly if the law underwent - without providing information.
People's Daily, the flagship newspaper of the party, published a video clip showing thunderous applause as the security laws were introduced inside the ornate Great Hall of the People in Beijing. In 2014, over one lakh city residents took part in the "Umbrella Revolution" to protest against China's denial of democratic reforms.
Citing "notable national security risks" in Hong Kong, NPC vice chairman Wang Chen said "forceful measures must be taken to prevent, stop and punish such activities", in a reference to anti-government protests that erupted almost a year ago over plans to allow extradition to mainland China.
Now the Chinese government argues the law is necessary to "prevent, stop and punish" such protests in the future. The demonstrations lasted months.
"This is the biggest threat to democracy in Hong Kong", he said of the proposed national security law and growing Chinese influence.
HRIC concluded: "It seems highly unlikely that the [NPC standing committee] will formulate a national security law for Hong Kong that conforms to global norms and standards and respects and protects the fundamental rights and freedoms of individuals".
This evokes insecurity in the markets as risks of a US-China conflict and renewed Hong Kong protests grow.
Sunday's rally, the largest since COVID-19 lockdowns began, was initially organised against a national anthem bill but the proposed national security laws sparked calls for more people to take to the streets. The establishment and improvement of the legal system and enforcement mechanisms for the HKSAR to safeguard national security will help stabilize the business environment in Hong Kong, enhance the confidence of local and foreign investors, and enable the society to continue to develop steadily so that people can live and work in peace and contentment and enjoy the fruits of the economic development, according to the Federation of Hong Kong Industries.
China could essentially place the draft law into Annex III of the Basic Law, which covers national laws that must be implemented in Hong Kong - either by legislation, or decree.