The Hong Kong government has rejected an annual report on the SAR by the European Commission, saying it had "unfounded and biased content" on issues such as safeguarding national security and human rights.

In a statement issued late on Thursday, the administration also urged the European Union (EU) to stop interfering in the territory's affairs.

"Any attempt by foreign countries or external forces to undermine Hong Kong's prosperity and stability by slandering the city's situation will only expose their own weakness and faulty arguments and be doomed to fail," a government spokesperson said.

The report by the commission outlined the political and economic developments in the SAR in 2023, pointing to the city's national security law and relevant court trials, as well as district council elections.

"These developments undermine trust in the rule of law in Hong Kong and affect Hong Kong’s standing as an international business hub," said commission vice-president Josep Borrell.

But the report also noted "hopeful signs of progress on the rights of LGBTI+ people in Hong Kong, mainly carried forward by the judiciary", as well as substantial commercial links between the SAR and the EU.

The administration stressed that the city's national security laws were "precisely for safeguarding national sovereignty, unity and territorial integrity".

"It also better safeguards the fundamental rights and freedoms of the residents of the [Hong Kong Special Administrative Region] and other people, including those doing business, in the city," it said.

"The EU must immediately act reasonably and sensibly, and stop smearing the laws safeguarding national security in the [Hong Kong Special Administrative Region]."