This move has raised concerns among businesses, particularly Western tech firms like Alphabet's Google, which may be forced to reconsider their presence in the city.

The government's determination to pursue the ban shows its campaign to eliminate dissent is still expanding, despite a three-year crackdown under the national security law that has put the city's political opposition in jail or in self-imposed exile and shuttered the most critical media outlets.

The latest sign of the city's erosion of its liberal institutions, legal system, and capitalist markets, which were the foundation of its status as a global business hub, is the potential injunction to ban the song.

This move is seen as blurring the lines between the national security sphere and other spaces.

International businesses operating in Hong Kong need to take note, as they could be drawn into NSL enforcement at any time, which presents very real reputational risks and costs, according to Thomas Kellogg, executive director of the Georgetown Center for Asian Law.

The national security law offenses in Hong Kong are similar to those of other jurisdictions, according to a government spokesperson's statement to Bloomberg News.

The implementation of the law "restored stability and increased the confidence in Hong Kong, thereby allowing the city to resume its normal operation and the prestigious business environment to return," the statement said.

However, it's unclear how tech firms will respond if the court grants the injunction.

Google has previously said it will not remove web results unless there are specific reasons outlined in their global policy documentation.

Xiaomeng Lu, a director at Eurasia Group who specializes in geopolitics and technology, said if the song is banned, it could deter foreign investors.

Hong Kong's information environment is gradually syncing up with that of mainland China, with Hong Kong transforming from an international business hub for everyone to a global gateway for Chinese companies, Lu added.

In another sign of the expansion of the crackdown on dissent, Hong Kong authorities this month announced HK$1,000,000 international bounties Hong Kong's business environment has been facing significant challenges in recent years, with the security law and regulatory crackdowns from China making it difficult to have open discussions about economic topics, according to a report by Bloomberg.

The city's business confidence has also been undermined by years of strict Covid controls imposed in line with mainland policies.

"International companies and investors are becoming more aware of the risks of doing business in an environment where policy volatility is the norm," said Andrew Yeo, the Asia head of strategic advisory firm Global Counsel.

The report highlights how Hong Kong's alignment with Beijing has made it increasingly difficult for businesses to know where the "red line" is, with one financial professional even choosing to move from Hong Kong to Singapore during the pandemic.

The report also highlights the reputational risks that some firms face by associating with Hong Kong due to its China ties.

The business owner who oversees production for multinational brands said that some firms want to avoid association with Hong Kong because of these reputational risks.

Kristian Odebjer, chairperson of the Swedish Chamber of Commerce, said that while Hong Kong still had several "core strengths," its story has become "a more challenging one to tell." Any injunction against a protest song that diminishes internet freedoms would likely further complicate that narrative.

"Hong Kong may be back, but it is a different Hong Kong," Odebjer said.

The report highlights how the city's business environment has been facing significant challenges, with the security law and regulatory crackdowns from China making it difficult to have open discussions about economic topics, and the city's business confidence has also been undermined by years of strict Covid controls imposed in line with mainland policies.