Since it was passed on June 30 by China's top legislature, the 13th National People's Congress, the law has fixed the loophole in Hong Kong's legal system and halted violent activities in Hong Kong, Lam said.
Brussels has previously made a decision to limit exports of equipment that could be used for surveillance in Hong Kong and European Union foreign ministers have discussed the possibility of broader sanctions if the situation worsens.
Hong Kong's Department of Justice said in a statement on Tuesday no one should interfere with independent prosecutorial decisions, adding it "undermines the rule of law".
China grew by 2.3% last year, its weakest in 44 years, but was still the only major economy to expand as it largely vanquished the domestic spread of the novel coronavirus that first emerged in the country in late 2019.
The activists, aged 23 to 64, were charged with conspiracy to commit subversion under the security law and detained on Sunday over their involvement in an unofficial primary election previous year that authorities said was a plot to paralyze Hong Kong's government.
National People's Congress spokesperson Zhang Yesui said the changes are aimed at ensuring that Hong Kong's political system will "keep abreast of the times" under the principle of "patriots" administering the city.
China's economy expanded just 2.3 percent in coronavirus-stunted 2020, but Li noted the country was still "the world's only major economy to achieve growth" previous year.
Hong Kong has been excluded from the Heritage Foundation's Index of Economic Freedom because its economic policies are controlled from Beijing, the Washington-based think tank said, removing Hong Kong from a list it topped for 25 years up to 2019.
Last month Hong Kong announced its own plans to pass a law vetting all public officials for their political loyalty to Beijing.
Li traditionally uses the lengthy speech to reveal an annual growth target for the world's second-largest economy.
"There's still no end in sight for China's coal plant construction boom", Greenpeace's Li said.
That's up from 1.3 trillion yuan ($180 billion) past year representing a 6.6% boost, the lowest percentage increase in at least two decades.
China projected defense spending growth of 6.8% this year, the largest increase since 2019, amid tensions with the USA and key neighbors.
China's official military budget number, however, is widely believed to be lower than true spending.
It further emphasised strengthening its ties with the United States.
Planned or potential legislation during the NPC session includes a proposed revision to wildlife protection laws that would permanently ban eating most wildlife, amid the belief that the pandemic came from an animal host.