Hong Kong police raid on newspaper filmed in real time as China flexes muscles

By James Pomfret

HONG KONG (Reuters) – Six weeks after China imposed sweeping national security laws on Hong Kong, police moved in on media tycoon Jimmy Lai, one of the most outspoken critics of Beijing in the city.

Lai, 71, was whisked away from his home early on Monday morning by national security police, part of a citywide operation that also saw eight other men arrested, including several of his senior executives.

Then, just before 10 a.m., hundreds of police descended on Lai’s corporate Next Digital headquarters, where his flagship Apple Daily is produced and published.

Staffers said they asked police what legal grounds they had for entering. But these questions were largely ignored as more than 200 police streamed in, according to a live feed of the unfolding drama.

Apple Daily’s Editor-in-Chief Ryan Law, who was helping film and comment on the Facebook live feed, could be seen rushing about the building as he tried to report on events breaking in his own newsroom.

“This is, I believe, the first time in Hong Kong that police have initiated a mass search on a media outlet like this,” he said, panting, as he scaled a back staircase with a colleague to get around the mass of police officers.

As news of the raid spread, more than 10,000 people tuned in, watching as Law defied police warnings to stop filming.

The newsroom was lightly staffed at the time.

But the few employees there, some clad in shorts and sneakers, were told to produce identity documents and register with the police. Some demanded to first see a search warrant.

Some desks were festooned with poster art in support of pro-democracy protests last year, and the Umbrella movement of 2014. One read: “Who’s afraid of the truth!”

More police began arriving, and fanned across the newsroom, following by Law as they meandered through the unmanned cubicles in scattershot fashion, lifting a paper here, plucking a folder from a cabinet there.

“What is the scope of your search area?” one voice was heard shouting off camera. A male officer replied that such inquiries should be put to his supervisors.

Several executive offices, including Lai’s, were sealed off with a red cordon and guarded by police.

PREPARED FOR RAID

Two months before, in an interview with Reuters in one of those sealed rooms, Lai said he was bracing for just such a day: shifting assets abroad and making preparations with lawyers.

“Everything will be piled on us,” he had said.

At around 11 a.m., police led the crew-cut Lai into his office in handcuffs. When he went to the toilet, an entourage of around 20 officers followed. Several other senior executives were also shown being taken into the building.

The police said in a statement that they had a court-issued warrant for their search, and that the nine men had all been arrested for suspected national security law violations, including collusion with foreign powers.

The police did not reveal the names or any specific charges for any of those arrested.

The raid, though expected, rattled some staffers.

Months before the law took effect, the newspaper had shredded documents, uploaded digitized files to overseas servers and safeguarded sources, two senior reporters told Reuters, speaking anonymously because of the sensitivity of the situation.

“I had prepared myself mentally for this,” one said. “But emotionally I feel a little conflicted. It’s happened so quickly. The government is finally taking this drastic step to destroy the city’s media freedoms.”

Police carted 25 boxes of evidence from the building and blocked reporters from other outlets from entering.

Senior police on the scene tried at one point to prevent Apple Daily reporters working at their desks, but relented upon fierce objections from staff present.

Law, Apple Daily’s chief editor, said the paper would continue to be published no matter what.

“Business as usual,” he said in a text message to Reuters.

(Additional reporting by Greg Torode and Jessie Pang; Editing by Gerry Doyle and Raju Gopalakrishnan)

Unofficial Hong Kong vote sees new generation take over battle for democracy

By Jessie Pang and Yanni Chow

HONG KONG (Reuters) – A younger, more defiant generation of Hong Kong democrats has secured the most votes in unofficial primary elections in the Chinese-ruled city, setting the stage for a battle with pro-Beijing politicians for control of the city’s legislature.

The success of young contenders in the primaries organized by the pro-democracy camp on the weekend to pick candidates for a Sept. 6 election for a 70-seat city assembly comes amid widespread resentment of a national security law that Beijing imposed last month.

Beijing denounced the vote as illegal and warned it may have violated the new security law, which has raised fears for the freedoms that have underpinned Hong Kong’s open society and success as a financial hub.

Prominent pro-democracy activist Joshua Wong won in his district, but he has been disqualified from previous elections and could face similar hurdles this time.

Wong warned against any sweeping disqualification of candidates when he held a news conference with 15 other young politicians who won in their districts.

“If the government cracks down on us and disqualifies all the candidates who joined the primaries, it will cause more outrage in the international community and encourage more people to vote for the pro-democratic camp in September,” Wong said.

The 16 – all but one under 30 and dressed in black T-shirts – are part of a so-called localist or resistance camp, which outshone the cohort of traditional democrats, which had secured 12 candidate slots as of Wednesday afternoon.

Full results are expected later in the day.

The localists – a term for those who do not see themselves as Chinese and focus on saving the former British colony’s freedoms – tend to be more assertive than traditional democrats.

The localists talk of resistance and saving democracy but they do not all have the same vision for Hong Kong’s future. Some dream of independence – anathema for Beijing – but do not speak of it openly, which would see them fall foul of the new security law and face up to life in prison.

Their performance in the primaries reflects frustration, especially among younger voters, with Hong Kong’s more moderate, traditional pro-democracy politicians.

“Localism has become the mainstream,” said localist candidate Henry Wong. “We will resist against the tyranny.”

The new security law punishes what Beijing broadly defines as secession, subversion, terrorism and collusion with foreign forces with up to life in prison and sees Chinese intelligence agents operating officially in the city for the first time.

Critics fear it will crush wide-ranging freedoms promised to Hong Kong when it returned to Chinese rule in 1997, while supporters say it will bring stability after a year of often violent anti-government protests.

‘DIFFICULT TO UNDERSTAND’

The law has already had a chilling effect on many aspects of life.

Earlier on Wednesday, former democracy lawmaker Au Nok-hin said he was pulling out as an organizer of the weekend vote amid accusations from Beijing that it was illegal.

“Withdrawal is the only choice … (to) protect myself and others,” Au said in a Facebook post.

A spokesman for Beijing’s top office in the city, the Hong Kong Liaison Office, said the pro-democracy camp’s bid for a legislative majority was an attempt to carry out a “color revolution,” referring to uprisings in other parts of the world.

In comments that critics said were aimed at instilling fear, the Liaison Office as well as Chinese government’s Hong Kong and Macau Affairs Office and the city’s leader, Carrie Lam, have all said the primaries could violate the national security law.

Benny Tai, another organizer of the pro-democracy polls, was defiant.

“For those who do not recognize democracy, or do not agree with democratic values, it is difficult to understand the meaning of the primary election,” Tai said.

Hong Kong police on Wednesday arrested the vice chairman of the city’s Democratic Party, Lo Kin-hei, on charges of unlawful assembly related to a protest in November.

The political tension in Hong Kong has alarmed the business community while the new law has raised concern in countries that support the “one country, two systems” formula of government meant to safeguard its freedoms.

On Tuesday, U.S. President Donald Trump ordered an end to Hong Kong’s special status under U.S. law to punish China for what he called “oppressive actions” against the city.

China said it would impose retaliatory sanctions on U.S. individuals and entities after Trump signed a law penalizing banks doing business with Chinese officials who implement the new law.

In an interview with state agency Xinhua, Chief Executive Lam said U.S. sanctions won’t hurt Hong Kong and in time, concern about the security law would prove unfounded.

In another blow to the city’s standing, the New York Times said it would shift part of its Hong Kong office to Seoul, as worries grow that the security law will curb media and other freedoms.

(Additional reporting by Aleksander Solum; Writing by Farah Master, Anne Marie Roantree and Marius Zaharia; Editing by Michael Perry, Robert Birsel)

China vows retaliation after Trump ends preferential status for Hong Kong

By Jeff Mason and Steve Holland

WASHINGTON (Reuters) – President Donald Trump on Tuesday ordered an end to Hong Kong’s special status under U.S. law to punish China for what he called “oppressive actions” against the former British colony, prompting Beijing to warn of retaliatory sanctions.

Citing China’s decision to enact a new national security law for Hong Kong, Trump signed an executive order that he said would end the preferential economic treatment for the city.

“No special privileges, no special economic treatment and no export of sensitive technologies,” he told a news conference.

Acting on a Tuesday deadline, he also signed a bill approved by the U.S. Congress to penalize banks doing business with Chinese officials who implement the new security law.

“Today I signed legislation, and an executive order to hold China accountable for its aggressive actions against the people of Hong Kong, Trump said.

“Hong Kong will now be treated the same as mainland China,” he added.

Under the executive order, U.S. property would be blocked of any person determined to be responsible for or complicit in “actions or policies that undermine democratic processes or institutions in Hong Kong,” according to the text of the document released by the White House.

It also directs officials to “revoke license exceptions for exports to Hong Kong,” and includes revoking special treatment for Hong Kong passport holders.

China’s foreign ministry said on Wednesday Beijing will impose retaliatory sanctions against U.S. individuals and entities in response to the law targeting banks, though the statement released through state media did not reference the executive order.

“Hong Kong affairs are purely China’s internal affairs and no foreign country has the right to interfere,” the ministry said.

Critics of the security law fear it will crush the wide-ranging freedoms promised to Hong Kong when it returned to Chinese rule in 1997, while supporters say it will bring stability to the city after a year of sometimes violent anti-government protests.

The security law punishes what Beijing broadly defines as subversion, secession, terrorism and collusion with foreign forces with up to life in prison.

U.S. relations with China have already been strained over the global coronavirus pandemic, China’s military buildup in the South China Sea, its treatment of Uighur Muslims and massive trade surpluses.

Trump’s handling of the coronavirus pandemic has raised doubts about whether he can win re-election on Nov. 3 amid a surge of new infections. He has attempted to deflect blame onto China.

“Make no mistake. We hold China fully responsible for concealing the virus and unleashing it upon the world. They could have stopped it, they should have stopped it. It would have been very easy to do at the source, when it happened,” he said.

Asked if he planned to talk to Chinese President Xi Jinping, Trump said: “I have no plans to speak to him.”

DOUBLE-EDGED SWORD?

Analysts say that completely ending Hong Kong’s special treatment could prove self-defeating for the United States.

Hong Kong was the source of the largest bilateral U.S. goods trade surplus last year, at $26.1 billion, U.S. Census Bureau data shows.

According to the State Department, 85,000 U.S. citizens lived in Hong Kong in 2018 and more than 1,300 U.S. companies operate there, including nearly every major U.S. financial firm.

The territory is a major destination for U.S. legal and accounting services.

The United States began eliminating Hong Kong’s special status under U.S. law in late June, halting defense exports and restricting the territory’s access to high-technology products as China prepared to enact the security legislation.

In May, Trump responded to China’s plans for the security law by saying he was initiating a process to eliminate the special economic treatment that has allowed Hong Kong to remain a global financial center.

He stopped short then of calling for an immediate end to privileges, but said the moves would affect the full range of U.S. agreements with Hong Kong, from an extradition treaty to export controls on dual-use technologies.

A U.S. official, speaking on condition of anonymity, said the administration was also preparing sanctions against Chinese officials and entities involved in the Hong Kong crackdown, including further U.S. travel bans and possible Treasury sanctions.

The timing remained unclear. The White House has previously threatened such sanctions but so far has only imposed restrictions on visas for an unspecified number of unnamed Chinese officials.

(Reporting by Jeff Mason and Steve Holland; Additional reporting by David Brunnstrom, Alexandra Alper, Patricia Zengerle, Eric Beech, Makini Brice and Matt Spetalnick; Editing by Leslie Adler and Peter Cooney)

Hong Kong leader says pro-democracy ‘protest’ vote might have violated new security laws

By Jessie Pang and James Pomfret

HONG KONG (Reuters) – Hong Kong leader Carrie Lam said on Monday that an unofficial city-wide election conducted by the pro-democracy camp over the weekend might have violated new national security laws by “subverting state power”.

The weekend election drew more than 600,000 votes, in what democrats described as a symbolic protest vote against tough new laws imposed by Beijing on the freewheeling former British colony.

The vote at around 250 polling stations was held to decide the strongest pro-democracy candidates to contest key Legislative Council elections in September.

The city’s opposition camp is aiming to seize majority control in the 70-seat legislature for the first time from pro-Beijing rivals by riding a wave of anti-China sentiment stirred by the law, which critics say has gravely undermined Hong Kong’s freedoms.

The city returned to Chinese rule in 1997 with a guarantee of wide-ranging autonomy.

The new law punishes secession, subversion, terrorism and collusion with foreign forces with up to life in prison and allows mainland Chinese security agents to operate officially in Hong Kong for the first time.

Lam told reporters that if the democrats’ aim to gain a legislative majority was to obstruct government policies, “then it may fall into the category of subverting the state power”. She didn’t elaborate.

One of the organizers of the election, Benny Tai, told reporters that the results of the poll had been leaked ahead of an official announcement. But he said there had been no personal data breach of the voters.

Last Friday, Hong Kong police raided the office of the independent pollster helping with the election, and officers copied some information from computers there.

Hong Kong’s Constitutional and Mainland Affairs Bureau said in a statement late on Monday that it had received public complaints that the weekend poll may have “jeopardized the integrity of the electoral process”.

It added it was now conducting an investigation and might later refer the case to law enforcement agencies.

The preliminary results showed several incumbent democratic lawmakers like Ted Hui and Eddie Chu taking the most votes in some districts.

But a group of aspiring young democrats, or “localists”, also performed strongly, reflecting a potential changing of the guard as the democrats gear up for the September poll.

“It’s just the beginning,” one candidate, Sunny Cheung, a runner-up in one district putting him on the democratic ticket for September, told Reuters.

“I will try to persuade more people to support us,” he added, saying localists like himself were gaining more mainstream support.

(Reporting by Jessie Pang and James Pomfret; Editing by Nick Macfie)

U.S. tech giants face hard choices under Hong Kong’s new security law

By Brenda Goh and Pei Li

SHANGHAI/HONG KONG (Reuters) – U.S. tech giants face a reckoning over how Hong Kong’s security law will reshape their businesses, with their suspension of processing government requests for user data a stop-gap measure as they weigh options, people close to the industry say.

While Hong Kong is not a significant market for firms such as Facebook, Google and Twitter, they have used it as a perch to reach deep-pocketed advertisers in mainland China, where many of their services are blocked. But the companies are now in the cross hairs of a national security law that gives China authority to demand that they turn over user data or censor content seen to violate the law – even when posted from abroad.

“These companies have to totally reassess the liability of having a presence in Hong Kong,” Charles Mok, a legislator who represents the technology industry in Hong Kong, told Reuters.

If they refuse to cooperate with government requests, he said, authorities “could go after them and take them to court and fine them, or imprison their principals in Hong Kong”.

Facebook, Google and Twitter have suspended processing government requests for user data in Hong Kong, they said on Monday, following China’s imposition of the new national security law on the semi-autonomous city.

Facebook, which started operating in Hong Kong in 2010, last year opened a big new office in the city.

It sells more than $5 billion a year worth of ad space to Chinese businesses and government agencies looking to promote messages abroad, Reuters reported in January. That makes China Facebook’s biggest country for revenue after the United States.

The U.S. internet firms are no strangers to governments demands regarding content and user information, and generally say they are bound by local laws.

The companies have often used a technique known as “geo-blocking” to restrict content in a particular country without removing it altogether.

But the sweeping language of Hong Kong’s new law could mean such measures won’t be enough. Authorities will no longer need to get court orders before requesting assistance or information, analysts said.

Requests for data about overseas users would put the companies in an especially tough spot.

“It’s a global law … if they comply with national security law in Hong Kong then there is the problem that they may violate laws in other countries,” said Francis Fong Po-kiu, honorary president of Hong Kong’s Information Technology Federation.

CONTENT QUESTION

While the U.S. social media services are blocked in mainland China, they have operated freely in Hong Kong.

Other U.S. internet platforms are also rich with content that is banned in mainland China and may now be judged illegal in Hong Kong.

U.S. video streaming site Netflix, for example, carries “Joshua: Teenager vs. Superpower”, a 2017 documentary on activist Joshua Wong whose books were removed from Hong Kong public libraries last week.

“Ten Years”, a 2015 film that has been criticized by Chinese state media for portraying a dystopian future Hong Kong under Chinese Communist Party control, is also available on its platform.

Netflix declined to comment.

Google’s YouTube is a popular platform for critics of Beijing. New York-based fugitive tycoon Guo Wengui has regularly voiced support for Hong Kong protesters in his videos. Google did not immediately respond to a request for comment.

None of these companies has yet said how they will handle requests from Hong Kong to block or remove content, and the risk of being caught in political crossfire looms large.

“The foreign content players have to rethink what they display in Hong Kong,” said Duncan Clark, chairman at consultancy BDA China.

“The downside is very big if they get U.S. senators on their backs for accommodating. Any move they make will be heavily scrutinized.”

(Reporting by Brenda Goh and Pei Li; Additional reporting by Cate Cadell in Beijing and Anne Marie Roantree in Hong Kong; Editing by Jonathan Weber and Robert Birsel)

U.S. says ‘deeply concerned’ by Beijing’s detention of Chinese law professor

Flags of U.S. and China are displayed at American International Chamber of Commerce (AICC)'s booth during China International Fair for Trade in Services in Beijing, China, May 28, 2019. REUTERS/Jason Lee

By Humeyra Pamuk

WASHINGTON (Reuters) – The United States on Tuesday said it was deeply concerned about China’s detention of Xu Zhangrun, a law professor who has been an outspoken critic of the ruling Communist Party, and urged Beijing to release him.

Xu, 57, a professor at the prestigious Tsinghua University, came to prominence in July 2018 for denouncing the removal of the two-term limit for China’s leader, which allows Xi to remain in office beyond his current second term.

According to a text message circulated among Xu’s friends and seen by Reuters, he was taken from his house in suburban Beijing on Monday morning by more than 20 policemen, who also searched his house and confiscated his computer.

“We are deeply concerned by the PRC’s detention of Professor Xu Zhangrun for criticizing Chinese leaders amid tightening ideological controls on university campuses in China. The PRC must release Xu and uphold its international commitments to respect freedom of expression,” U.S. State Department spokeswoman Morgan Ortagus wrote in a tweet.

The detention comes as a new national security law came into effect in Hong Kong last week. The sweeping legislation that Beijing imposed on the former British colony punishes what China defines as secession, subversion, terrorism and collusion with foreign forces, with up to life in prison.

Critics say the aim of the law is to stamp out a pro-democracy movement that brought months of protests, at times violent, to the city last year.

The imposition of the new law further deteriorated ties between Washington and Beijing, which had been at loggerheads for months over the handling of the coronavirus pandemic and a nearly two-year trade war.

On Monday, U.S. Secretary of State Mike Pompeo said the United States is “certainly looking at” banning Chinese social media apps, including TikTok, suggesting it shared information with the Chinese government, a charge it denied.

(Reporting by Humeyra Pamuk; Editing by Sandra Maler and Alistair Bell)

Hong Kong court denies bail to first person charged under new law

HONG KONG (Reuters) – A Hong Kong court denied bail on Monday to the first person charged with inciting separatism and terrorism under the city’s new national security law after he carried a sign saying “Liberate Hong Kong” and drove his motorbike into police.

Tong Ying-kit, 23, was arrested after a video posted online showed him knocking over several officers at a demonstration last Wednesday, less than 24 hours after Beijing imposed sweeping national security legislation on its freest city.

The city’s government has said the protest slogan “Liberate Hong Kong, revolution of our times”, connotes separatism or subversion under the new law, stoking concern over freedom of expression in the former British colony.

Tong, who was unable to appear in court on Friday as he was being treated in hospital for injuries sustained in the incident, appeared in court in a wheelchair.

In rejecting bail, Chief Magistrate So Wai-tak referred to Article 42 of the new law, which states that bail will not be granted if the judge has sufficient grounds to believe the defendant will continue to endanger national security.

The case was adjourned until Oct. 6 and Tong was remanded in custody.

Critics say the law – which punishes crimes of secession, subversion, terrorism and collusion with foreign forces with up to life in prison – is aimed at crushing dissent and a long-running campaign for greater democracy.

Authorities in Beijing and Hong Kong have repeatedly said it is aimed at a few “troublemakers” and will not affect the rights and freedoms that underpin the city’s role as a financial hub.

Also on Monday, prominent democracy activist Joshua Wong pleaded not guilty to inciting others to participate in an unlawful assembly during anti-government protests last year.

Fellow activist Agnes Chow pleaded guilty to a similar charge. Their case has been adjourned to Aug. 5.

Wong and Chow, who were both granted bail last year, led a pro-democracy group called Demosisto that they dissolved hours after Beijing passed the national security law.

The United States, Britain and others have denounced the new legislation, which critics say is the biggest step China has taken to tighten its grip over the city, despite a “one country, two systems” formula meant to preserve its freedoms.

(Reporting By Jessie Pang and Pak Yiu; Writing by Anne Marie Roantree; Editing by Robert Birsel; Editing by Robert Birsel)

Facebook, Twitter suspend processing of government data requests in Hong Kong

By Katie Paul

(Reuters) – Facebook Inc and Twitter Inc have suspended processing government requests for user data in Hong Kong, they said on Monday, following China’s establishment of a new national security law for the semi-autonomous city.

Facebook, which also owns WhatsApp and Instagram, is “pausing” reviews for all of its services “pending further assessment of the National Security Law,” it said in a statement.

Twitter said it had suspended all information requests from Hong Kong authorities immediately after the law went into effect last week, citing “grave concerns” about its implications.

The companies did not specify whether the suspensions would also apply to government requests for removals of user-generated content from its services in Hong Kong.

Social networks often apply localized restrictions to posts that violate local laws but not their own rules for acceptable speech. Facebook restricted 394 such pieces of content in Hong Kong in the second half of 2019, up from eight restrictions in the first half of the year.

Tech companies have long operated freely in Hong Kong, a regional financial hub where internet access has been unaffected by restrictions imposed in mainland China, which blocks Google, Twitter and Facebook.

Last week, China’s parliament passed sweeping new national security legislation for the semi-autonomous city, setting the stage for the most radical changes to the former British colony’s way of life since it returned to Chinese rule 23 years ago.

Some Hong Kong residents said they were reviewing their previous posts on social media related to pro-democracy protests and the security law, and proactively deleting ones they thought would be viewed as sensitive.

The legislation pushed China further along a collision course with the United States, with which it is already in disputes over trade, the South China sea and the coronavirus.

(Reporting by Katie Paul in San Francisco and Akanksha Rana in Bengaluru; Editing by Krishna Chandra Eluri and Richard Chang)

Exclusive: Hong Kong activists discuss ‘parliament-in-exile’ after China crackdown

By Natalie Thomas and Guy Faulconbridge

LONDON (Reuters) – Hong Kong pro-democracy activists are discussing a plan to create an unofficial parliament-in-exile to keep the flame of democracy alive and send a message to China that freedom cannot be crushed, campaigner Simon Cheng told Reuters.

Hong Kong, a former British colony that returned to Chinese rule in 1997, was convulsed by months of often violent pro-democracy, anti-China protests last year against Chinese interference in its promised freedoms, the biggest political crisis for Beijing since the Tiananmen Square protests of 1989.

Hong Kong police fired water cannon and tear gas and arrested more than 300 people on Wednesday as protesters took to the streets again in defiance of new, sweeping security legislation introduced by China to snuff out dissent.

The law pushes China’s freest city and one of the world’s most glittering financial hubs on to a more authoritarian path. China, which denies interfering in Hong Kong, has warned foreign powers not to meddle in its affairs.

Cheng, a Hong Kong citizen, worked for the British consulate in the territory for almost two years until he fled after he said he was beaten and tortured by China’s secret police. Cheng, who has since been granted asylum by Britain, describes himself as pro-democracy campaigner.

“A shadow parliament can send a very clear signal to Beijing and the Hong Kong authorities that democracy need not be at the mercy of Beijing,” he told Reuters in London. “We want to set up non-official civic groups that surely reflect the views of the Hong Kong people.”

He said that while the idea was still at an early stage, such a parliament-in-exile would support the people of Hong Kong and the pro-democracy movement there. He declined to say where the parliament might sit.

“We are developing an alternative way to fight for democracy,” Cheng said. “We need to be clever to deal with the expanding totalitarianism: they are showing more powerful muscle to suppress so we need to be more subtle and agile.”

He said more and more people were “losing hope that it is effective to go out on to the streets or run for election” to Hong Kong’s Legislative Council, or mini-parliament.

“We should stand with the Hong Kong people and support those staying in Hong Kong,” he said.

‘VERY GOOD SIGNAL’

Asked about HSBC’s support for the sweeping national security law, Cheng said the British government should speak to senior British capitalists to make them understand the importance of democracy.

After Prime Minister Boris Johnson offered millions of Hong Kong residents the path to British citizenship following China’s imposition of the law, hundreds of thousands of people would come to the United Kingdom, Cheng said.

“The UK has given a very good signal,” Cheng said. “At least hundreds of thousands of people will come.”

Almost 3 million Hong Kong residents are eligible for the so called British National (Overseas) passport. There were 349,881 holders of the passports as of February, Britain said.

“One day we will be back in Hong Kong,” Cheng said.

Hong Kong returned to China 23 years ago with the guarantee of freedoms not enjoyed on the mainland, including its independent legal system and rights to gather and protest, under a “one country, two systems” formula.

Huge protests calling for democracy, especially on the anniversaries of the June 4, 1989, Tiananmen crackdown, were common and brought major streets to a standstill for 79 days in the Umbrella movement of 2014.

The national security law punishes crimes of secession, subversion, terrorism and collusion with foreign forces with up to life in prison, will see mainland security agencies in Hong Kong for the first time and allows extradition to the mainland for trial.

(Reporting by Natalie Thomas, editing by Guy Faulconbridge and Stephen Addison)

U.S. House bill targets banks amid fears over China law for Hong Kong

By Patricia Zengerle

WASHINGTON (Reuters) – The U.S. House of Representatives passed legislation on Wednesday that would penalize banks doing business with Chinese officials who implement Beijing’s draconian new national security law imposed on the former British colony of Hong Kong.

China responded by saying the United States should stop interfering in Hong Kong affairs and warned that it would “resolutely and forcefully resist”.

Hong Kong returned to Chinese rule in 1997 under a “one country, two systems” formula that protected its freedoms, including an independent legal system, and wide-ranging autonomy. But China on Tuesday introduced sweeping national security legislation for the city, condemned by the United States, Britain and other Western countries.

British Foreign Secretary Dominic Raab reprimanded HSBC and other banks on Wednesday for supporting the new law, saying the rights of Hong Kong should not be sacrificed for bankers’ bonuses.

Senior British and U.S. politicians criticized HSBC and Standard Chartered last month after the banks backed the new law.

The law punishes crimes of secession, subversion, terrorism and collusion with foreign forces with up to life in prison, will see mainland security agencies in Hong Kong for the first time and allows extradition to the mainland for trial.

The House measure passed unanimously, reflecting concern in Washington over the erosion the autonomy that allowed Hong Kong to thrive as China’s freest city and an international financial center.

The U.S. Senate passed similar legislation last week, but under congressional rules the bill must return to the Senate and be passed there before being sent to the White House for President Donald Trump to sign into law or veto.

House Speaker Nancy Pelosi made an unusual appearance at a committee hearing on the situation in Hong Kong to say the security law marked the death of the “one country, two systems” principle.

“The law is a brutal, sweeping crackdown against the people of Hong Kong, intended to destroy the freedoms they were promised,” she told the House Foreign Affairs Committee hearing.

Chinese Foreign Ministry spokesman Zhao Lijian said in Beijing on Thursday the United States “must stop advancing the bill, let alone sign it or implement” it.

“Otherwise China will resolutely and forcefully resist,” he said.

U.S. Secretary of State Mike Pompeo said the security law was an affront to all nations and Washington would continue to implement Trump’s directive to end the territory’s special status.

The United States has already begun eliminating Hong Kong’s special status, halting defense exports and restricting the territory’s access to high-technology products.

(Reporting by Patricia Zengerle; Additional reporting by Huizhong Wu in Beijing; Editing by Sandra Maler, David Gregorio and Nick Macfie)