Hong Kong's security chief said "terrorism" was growing in the city, as government departments rallied on Monday behind Beijing's plans to introduce national security laws and after thousands took to the streets to protest against the move.

Police said they arrested more than 180 people on Sunday, when authorities fired tear gas and water cannons to disperse anti-government protesters as unrest returned to the Chinese-ruled city after months of relative calm.

"Terrorism is growing in the city and activities which harm national security, such as 'Hong Kong independence', become more rampant," Secretary for Security John Lee said in a statement.