Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
The PAGEs (see Tabs, above) attempt to make the information more meaningful by putting some structure to the information we have researched and assembled since 2006.
Shanghai’s authorities have doubled the free-trade zone to 240 square kilometres by including part of Lingang, a previously untapped area linked to the Yangshan deep water port
The expansion reflected the city’s renewed efforts to build a free marketplace that can rival regional business hubs such as Hong Kong and Singapore
Aerial photo taken on March 9, 2017 shows the Shanghai free trade zone (FTZ). Photo: Xinhua
Shanghai’s ambitious plan to turn Lingang into a Hong Kong-style free-trade port has yet to impress European companies due to a slow pace of enforcement with a series of liberalisations subject to Beijing’s approval.
The European Union Chamber of Commerce in Shanghai said on Tuesday that the business lobby group was expecting concrete measures to be implemented at the 119.5-square kilometre newly expanded free-trade zone (FTZ), which would whet European companies’ investment appetite, but it also vented dismay towards the slow progress.
It was advisable for the government to carry out planned reforms sooner to convince foreign investors of the golden opportunities inside the zone, said Carlo Diego D’Andrea, the chamber’s Shanghai chairman, who is also vice-president of the EU business chamber in China.
“After so many years [of waiting], we would like to see reform happen soon, not just the talks,” he said in an interview with South China Morning Post.
Shanghai doubled the size of the free-trade zone last month to about 240 sq km by including part of Lingang, a previously untapped area that is linked to the Yangshan deep water port.
The expansion reflected the city’s renewed efforts to build a free marketplace that can rival regional business hubs such as Hong Kong and Singapore.
Shanghai plans to impose zero tariffs on imported goods inside the Lingang FTZ, but the reform measures cannot be implemented unless the General Administration of Customs gives a green light.
Shanghai’s city government had proposed a series of incentives aimed at building Lingang into a world-class investment magnet, the free-trade zone’s deputy director Wu Wei said at a Friday press conference, without elaborating on when the policies might be endorsed by the relevant ministry-level authorities.
Professor Zhou Zhenhua, president of Shanghai Academy of Global Cities, said the central government was still cautious of taking drastic steps in quickly liberalising the Lingang FTZ amid worries of rampant capital and cargo flows.
US bestselling electric vehicle maker Tesla has built its Gigafactory 3 at the Lingang FTZ after it secured an approval from Beijing to establish a wholly owned assembly plant late last year.
The approval for the first wholly-owned foreign car factory on mainland China coincided with a sales drop in the country’s automobile market, the first contraction in nearly three decades.
“Why could not you have opened the market before when the market was booming,” said D’Andrea.
He said that the timing of scrapping the foreign ownership cap amid the first negative growth of the domestic car market in three decades was not enough to show Beijing’s determinations in drawing overseas funds.
Beijing has been harping on its resolution in further opening up the markets to foreign businesses as a way of amid the US-China trade war that began in 2018.
Top law enforcement body starts campaign to rally mainland support for officers amid anti-government protests
Maxim’s described as ‘company that loves the country and loves Hong Kong’ after condemnation of unrest by daughter of founder
Officer Lau (third from left) and police colleagues receive a delivery of mooncakes. Photo: Weibo
China’s top law enforcement agency has shown its support for Hong Kong’s embattled police by delivering 650 boxes of mooncakes to the force’s dormitories and stations ahead of Friday’s Mid-Autumn Festival.
The festive gifts were sent after an online campaign titled “I want to send hometown delicacies to Hong Kong Police”, launched last Friday by Chang An Jian, an official social media account of the Central Political and Legal Affairs Commission, Beijing’s top political body responsible for law and order.
The commission – a Communist Party organ, rather than a government body that police report to – said in a blog post that seven people had donated about 150,000 yuan (US$21,000) between them.
The campaign represents the latest display of mainland support for the force, with no end in sight to mass protests in Hong Kong triggered in June by opposition to an
that would have allowed the transfer of criminal suspects to mainland China. Hong Kong police have faced numerous accusations of excessive use of force during the unrest.
But the mooncake delivery was complicated by customs regulations, with most major Chinese courier services unwilling to take deliveries containing processed meat and egg yolk across the border with Hong Kong.
“[We] were panicking because a lot of enthusiastic netizens had their salted duck and mooncake deliveries to Hong Kong rejected by couriers!” a Chang An Jian blog post said on Wednesday night.
In the end, 650 boxes of mooncakes that were bought from Hong Kong were sent to police dormitories and stations on Wednesday evening.
Mid-Autumn Festival is the second most important traditional Chinese holiday after Lunar New Year.
“[The mooncakes] were from Maxim’s, a company that loves the country and loves Hong Kong!” the blog post also said.
Annie Wu Suk-ching, whose father co-founded the Maxim’s chain, last week
She was lauded by Communist Party mouthpiece People’s Daily for “clearly adhering to the one country principle” – referring to “one country, two systems”, the principle under which Hong Kong was guaranteed a high degree of autonomy after it was handed over from British to Chinese rule in 1997.
One of Maxim’s biggest rival mooncake manufacturers in Hong Kong, Taipan Bread and Cake, had its products removed from shops across the Chinese mainland and from its biggest e-commerce sites, Tmall.com and JD.com, after the son of its founder was vilified by People’s Daily for a Facebook post that the newspaper said showed he backed the protests.
Recipients of the mooncakes included a police officer who in July was hailed as a hero by Chinese state media and nicknamed “bald sergeant Lau Sir” after pointing a shotgun at protesters who had besieged a police station. Lau has since been invited by Beijing to attend a grand celebration on October 1 for the 70th anniversary of the founding of the People’s Republic of China.
Mooncake importer says stock will be destroyed after mainland backlash
Beijing has focused attention on the violent elements of the Hong Kong protests in its social media posts and media coverage, while businesses have been carefully monitored and expected to toe Beijing’s line on condemning violence and supporting one country, two systems.
“Hong Kong Police have been having a very difficult time,” said one mainlander, surnamed Lu, in a video posted by Chang An Jian. “We want to cheer them up.”
Deity has all the necessary travel documents for seven-day journey bringing blessings to coastal communities
The statue of Chinese sea goddess Mazu on board the train for her seven-day tour of eastern China. Photo: Weibo
High-speed rail travellers in eastern China may find themselves in exalted company this week as one of China’s most beloved deities is on a seven-day tour.
Mazu, protector of seafarers, boarded the train at Putian in Fujian province on Friday with an entourage of 230 worshippers for one of her regular “inspection tours”. And, like any modern traveller, the sea goddess had the necessary identity card and ticket for the journey.
Mazu, known as Tin Hau in Hong Kong, began life more than 1,000 years ago as a mortal named Lin Mo, according to Chinese folk belief. As a girl she is said to have saved some of her family members when they were caught in a typhoon while out fishing. In another version of the myth, Lin Mo died while trying to rescue shipwreck victims.
She fell out of favour in mainland China during the Cultural Revolution, when her ancestral temple on Meizhou Island in the southeastern province of Fujian was destroyed to make way for a People’s Liberation Army garrison. In the late 1970s the temple was rebuilt and in 2009 the beliefs and customs surrounding Mazu were recognised as an Intangible Cultural Heritage of Humanity by Unesco.
Inspectors on China’s high speed rail will find everything in order if they ask to see the goddess Mazu’s ticket during her seven-day tour. Photo: Weibo
Staff at the Meizhou Mazu Temple applied for an ID card for the goddess, in her earthly name of Lin Mo. Tickets were also organised for two other fairy figures who traditionally protect her, according to Chinese folklore.
“Not only Mazu but Thousand-Mile Eye and Wind-Accompanying Ear were all bought tickets,” a temple representative told the Southern Metropolis News.
This is not the first time the trio have been bought travel tickets. Two years ago their airfares were paid for when they visited Malaysia and Singapore and, a year later, they took a cruise ship to the Philippines.
This year’s tour includes a visit to Kunshan in Jiangsu and Shanghai, before Mazu returns to her home temple on the island of Meizhou. At each stop, devotees believe Mazu blesses the location with her presence and protects its residents from harm.
Taiwanese tycoon Gou thanks sea goddess for presidential inspiration
The tour has been organised jointly by the Meizhou Temple as well as the Huiju Mazu Temple in Kunshan and the Lugang Mazu Temple in Taiwan.
News of the celestial train journey quickly went viral on Chinese social media, with posts on Mazu receiving 460 million views on Weibo, the Twitter-like microblogging platform, since Monday. “First, respect. Second, she takes up a seat so it’s not crazy to buy her a ticket,” one comment read.
More than 40 per cent of those surveyed in an online poll say they feel they have no other choice, while just a quarter think the extra tutoring is necessary
It reflects widespread anxiety over getting places at the top schools, according to researcher
Sixty per cent of mainland Chinese children aged from three to 15 are receiving extra tutoring outside the classroom, according to a report. Photo: Handout
More than 40 per cent of Chinese parents feel they have no choice but to send their children to after-school classes because of the intense competition in the education system, according to an online poll.
But just a quarter of the respondents said they thought the extra tutoring was actually necessary for their children.
Nearly 200,000 parents had responded to the survey, conducted by social network Weibo, by Tuesday.
It comes after a report last week said 60 per cent of children aged between three and 15 in mainland China were receiving extra tutoring outside the classroom.
That report, released by the China National Children’s Centre and the Social Sciences Academic Press, also said parents of children in the age range were spending an average of 9,200 yuan (US$1,290) per year on after-school classes to cope with growing academic pressure.
It was based on a survey of nearly 15,000 children in 10 mainland cities and rural areas.
For the children, that meant they were spending an average of less than two hours playing outside on weekends, according to the report. They were also found to be devoting an average of 88 minutes a day to homework on school days.
Chinese parents send their children to a wide range of after-school classes. Photo: Xinhua
Wu Hong, a researcher from the Dandelion Education Think Tank in Chongqing, said the findings reflected the widespread anxiety of parents over their children getting places at the top schools.
“Many parents don’t have their own ideas about how their kids should be educated and they just follow others blindly. For example, a friend of mine said she plans to send her two five-year-olds to an international school in Thailand just because several of her friends did that,” Wu said.
“It’s not that kids should not attend any after-school classes, but we are apparently giving them too much when they’re so young, and this is only limiting their imagination.”
Last go at exam success for China’s ‘gaokao grandpa’
Studying a wider range of subjects in more depth than the public school syllabus requires and getting a head start by going over topics before they are covered in school have become common tactics used by parents trying to help their children compete in a challenging educational environment in China.
In the more affluent cities, some parents are spending a lot more than the average on their children’s extracurricular activities. Shanghai mother Emma Jin said she wanted to give her daughter, who is in Year Two, a good chance in the education system.
“Extra English classes cost 20,000 yuan for a year. She also takes dance classes, taekwondo and so on,” Jin said. “I don’t expect much from her, but I don’t want her to be the worst in the class either.”
Some parents said the pressure came from the schools.
“My child is studying at a public school. The teacher told us to have our child learn pinyin [the mainland’s system of romanisation of Mandarin script] in advance at after-school classes during the admission interview. Should I have just disregarded his advice?” one parent commented on Weibo.
‘Heavy burden’ of homework leaving Chinese children sleep-deprived, study finds
The heavy pressure on children from extra classes has meanwhile prompted the Ministry of Education to issue several directives to schools asking them to pay more attention to pupils’ well-being – including by encouraging them to get at least one hour of outdoor exercise and 10 hours’ sleep a day. Last year, it also banned cram schools from holding competitions or offering classes to children that were too advanced for their age.
Merkel makes the case on sensitive issues in Beijing without being offensive, observer says
German Chancellor Angela Merkel (centre) talks to staff at manufacturer Webasto during a visit in Wuhan on Saturday. Photo: EPA-EFE
German Chancellor Angela Merkel may be slowly declining in influence in European politics but she remains the EU’s strongest voice in dealing with China, analysts said after her latest trip to China last week.
During the two-day visit, Merkel and Chinese President Xi Jinping discussed the sensitive topic of Hong Kong and the social credit system in China.
German diplomats also averted a plan by Chinese officials to scrap a joint press conference by Merkel and Chinese Premier Li Keqiang out of concerns that it could be dominated by questions about the escalating protests in Hong Kong.
Two sources told the South China Morning Post that the Chinese side initially suggested not letting journalists ask questions during the press conference. German diplomats persisted, saying that Merkel would hold her own press conference to take media questions, the sources said.
Germany’s Angela Merkel renews call for peaceful resolution to Hong Kong protests
After talks with the Chinese president and premier, Merkel said Beijing had listened to her views about resolving the Hong Kong conflict without violence, adding: “This is important.”
She said she also pressed the European Union’s position that the Sino-British Joint Declaration on Hong Kong remained effective, countering Beijing’s assertion that the 1984 document has ceased to be valid.
“Merkel navigated the narrow line to raise these sensitive issues without being overly offensive,” said Jan Weidenfeld, of the Berlin-based Mercator Institute for China Studies.
Joerg Wuttke, president of the EU Chamber of Commerce in China, said Merkel’s biggest achievement was to raise the issue about the social credit system in China, a policy that aims to rank every individual and corporate entity based on their compliance with state-stipulated social norms.
“It is important to us that she makes the Chinese leadership aware that the German business community would like to get better briefed and prepared for this major change in company compliance by the Chinese authorities,” Wuttke said. “Merkel was the first foreign leader to do so.”
Despite Merkel’s tough approach, China’s foreign ministry was full of praise for the German leader’s visit, saying both sides were “satisfied” with the outcomes.
“This is Chancellor Merkel’s 12th China visit, so she should be one of the Western leaders who visited China the most times and knows China the best,” ministry spokeswoman Hua Chunying said on Monday.
Hong Kong is a matter for China, Premier Li Keqiang tells Angela Merkel
Back home, however, German media and businesses remained sceptical about the future.
Bild, the country’s biggest-circulation newspaper, has been following closely the arrest of Hong Kong pro-democracy activist Joshua Wong Chi-fung, who was detained at Hong Kong airport on his way to Berlin at the newspaper’s invitation. Wong was later cleared to travel abroad.
Several newspapers have put pressure on Merkel to speak out for Hong Kong, with one calling on her to replace a stop in mainland China with one in the former British colony, which she refused.
On the business side, German businesses also urged Merkel to caution Beijing against sending troops to Hong Kong out of concerns that the lucrative Chinese market would become subject to international sanctions.
Another concern is the slow pace of structural reforms that would open up Chinese markets to foreign businesses.
President says sale of Lockheed Martin F-16Vs will go ahead if ratified by Senate
Military experts have said the jets would bolster Taiwan’s ability to counter the threat of air strikes from mainland China
A Taiwan Air Force F-16V takes off during a drill in May. Photo: EPA-EFE
Beijing warned it would take countermeasures against Washington for selling 66 fighter jets to Taiwan after US President Donald Trump said he had approved the US$8 billion deal.
Chinese foreign ministry spokesman Geng Shuang on Monday said the sale of Lockheed Martin F-16V jets was a serious violation of the one-China principle.
“China has made numerous solemn representations to the US on the sale of F-16V jets to Taiwan,” Geng said in a press conference, adding that the United States should halt the sale.
“The US has to bear all the consequences triggered by the sale,” Geng said. “China will take necessary measures to defend its self-interest based on the development of the situation.”
Geng gave no details of the action China would take. In July, Beijing said it would impose sanctions on US firms involved in a deal to sell US$2.2 billion worth of tanks, missiles and related equipment to Taiwan, describing it as harmful to China’s sovereignty and national security.
Liang Yunxiang, an international relations expert from Peking University, said one countermeasure Beijing might use was to suspend military-to-military exchanges with the United States.
‘Fighter jets trump battle tanks’ in Taiwan’s US arms priorities
Speaking to reporters in New Jersey on Sunday, Trump said that the sale would need to be ratified by the US Senate but that he had approved it.
“It’s US$8 billion. It’s a lot of money. That’s a lot of jobs. And we know they’re going to use these F-16s responsibly,” he said.
If the deal is approved by Congress, it will be the first time since 1992 that the United States has sold F-16s to Taiwan. Previous requests were rejected by the Barack Obama administration, which instead offered to upgrade Taiwan’s existing fleet of about 140 F-16A/B Block 20 aircraft.
During months of slow progress since the sale was outlined earlier this year, some lawmakers and defence experts had suggested that Trump was using the proposed deal as leverage to secure a better agreement for the US in talks to resolve its year-long
Taiwan’s presidential office and foreign ministry lauded Trump’s announcement, calling it a strong sign of the US’ commitment to its security and saying the deal would help to maintain regional stability.
“The new warplanes will greatly strengthen our anti-air defence capability and we will continue to be devoted to safeguarding peace and stability across the Taiwan Strait and in the region, thereby maintaining freedom and democracy in Taiwan,” presidential office spokesman Alex Huang said.
‘Fighter jets trump battle tanks’ in Taiwan’s US arms priorities
In a statement, Taiwan’s foreign ministry said persistent war games by the mainland around the island and in the East and South China Sea had not only sabotaged peace and stability in the region but also triggered grave concern from China’s neighbours.
It described Trump’s approval of the deal as a “strong indicator of the close and growing security partnership between the US and Taiwan”.
Opinion: Care needed over Taiwan arms deal
Military experts have said the new variant of the F-16, the Viper – which can carry a wide range of short and medium-range air-to-air missiles – is more able to counter the threat of an air strike from mainland China’s fourth-generation aircraft, such as the Su-35 and J-10.
Last week, Republican Senator Marco Rubio said the US administration had made progress in advancing the deal, which he called “an important step in support of Taiwan’s self-defence efforts”.
In July, the US also approved arms sales to Taiwan worth US$2.2 billion, including 108 M1A2T Abrams tanks and 250 Stinger portable surface-to-air missiles.
Beijing strongly opposes arms deals with Taiwan, which it considers a renegade province, but the US is obliged to help defend the self-governing island under the terms of its Taiwan Relations Act, effective since 1979.
Adult consumers are fuelling a boom in China’s toy collectibles market
Men are spending thousands of dollars on figurines to express their identity, boost their street cred, and indulge their inner kid
Chinese collector Don Tang with artist Jason Freeny at the Jason Freeny X-Soul Station exhibition in Shanghai. Photo: Don Tang
Don Tang is proud of his toys. So much so that the Shanghai resident, 32, puts them on display both in his home and in the office of the company he runs.
And there are plenty to display. Tang, 32, has some 100 collectibles and the number is growing all the time. Each month he sets aside 2,000 yuan (US$280) to buy the top trending toys, newest releases, or one-of-a-kind items – either from physical stores, online or at toy conventions in China.
But the toys are not connected to his work as the CEO of a firm in the intellectual property sphere. They are simply a hobby, albeit one Tang takes seriously. The crowning jewel of his collection? A 6,000 yuan KAWS action figure bought in Tokyo, Japan.
“When I return home from work each day, I get to see [my toys] and it puts me in a good mood,” says Tang, who realises some people might not get the appeal of his hobby, but says it is an “addictive” pursuit and a way of appreciating designs and craftsmanship. Whether it’s SpongeBob SquarePants, Hello Kitty or Sesame Street, each toy has its own distinct, “lovable, cute, and personalised” identity, he says.
Remind you of someone? Hambuddha is a designer figurine made by Mighty Jaxx of Singapore that is aimed at the adult market. Photo: Mighty Jaxx
“When you look back at the toys that you collected at different times, you realise how your own aesthetic, tastes, and preferences have changed over time,” adds Tang, who would never dream of selling his precious collection.
Tang’s toy story is far from unique. Sales of toys and games in China – which produces 80 per cent of all the world’s toys – soared to 324 billion yuan in 2018, up from 135 billion yuan in 2013, according to market research company Euromonitor. Fuelling these sales is a growing army of toy connoisseurs just like Tang.
CASHING IN
Mighty Jaxx, a Singapore-based urban culture company that designs and manufactures collectibles and lifestyle products, is among the many companies benefiting from this surge in demand.
Its Chinese customer base accounts for 25 per cent of its projected revenue of S$10 million (US$7.21 million) for 2019 – and this proportion is expected to hit 40 per cent over the next few years, according to Mighty Jaxx’s founder and CEO, Jackson Aw, 30.
Smearing cannabis on your face: the latest Asian beauty craze
An avid toy collector himself, Aw first mused over the idea of turning his hobby into a viable business back in 2012. He ventured to Shenzhen in China for one month, knocking on factory doors just for a behind-the-scenes glimpse of the toy production process.
Being one of his first times to China, the mammoth scale of the industry came as a major “culture shock” to Aw.
Mighty Jaxx founder and CEO Jackson Aw. Photo: Toh Ee Ming
“I had always thought that it was just one giant machine that spits out parts and that was it. But there were rows and rows of hundreds of people printing, hand painting, assembling and using different skills just to produce one toy,” the Singaporean says.
Describing the visit as his “greatest education”, Aw was inspired to launch Mighty Jaxx from his bedroom with start-up capital of S$20,000 loaned from a bank through his parents.
Fast forward to today and his online business has worked with major brands such as Warner Brothers, DC Comics, Cartoon Network, MTV and New Balance, and shipped millions of products to collectors in over 50 countries. It is best known for its XXRAY figures, developed in partnership with artist Jason Freeny, which feature dissected Justice League characters such as Batman, Superman and Wonder Woman.
Hong Kong toy makers hope Asia’s largest toy fair will help boost flagging sales
But in its early days, the China market had intimidated Aw as a “big anomaly” that was still largely closed off. Aw had found it difficult to navigate the cultural norms and familiarise himself with unfamiliar business models.
Still, sensing China’s potential, his firm embarked on wide-ranging creative collaborations to tailor its offerings to the Chinese market – from creating yin-and-yang themed toys, celestial chicken fairy deities and the “Hambuddha” (a Buddha holding a pearl-shaped hamburger while on a lotus throne).
It also partnered with Chinese artist Chen Wei (who goes by the alias Cacooca) to develop a new Panda Ink collection, which depicts a panda in the midst of an everyday activity or hobby, such as hiking, playing video games or cuddling with cats.
Mighty Jaxx’s ‘Flow by 18 Uppercut’ has a yin and yang theme with white and black halves. Photo: Mighty Jaxx
It has also collaborated with other big-name artists and celebrities trending among Chinese consumers – such as Los Angeles-based dance crew Kinjaz, who found fame in China appearing on dance shows, and ABS, a leading graffiti crew based in Beijing’s 798 Art District – and has an upcoming collaboration with Taiwanese singer Show Luo.
But it is the comic and toy conventions that provide its biggest fans, typically men in their 20s to 40s who flock in from Beijing, Shanghai and Guangzhou.
Aw says these collectors have a huge appetite to splurge on high-end collectibles, which can range in cost from anywhere between US$10 to US$2,000.
Singapore sex toy sales buzzing thanks to ‘healthy’ branding
To these collectors, price is of little concern as they are looking for “tangible products to buy and show off their personality” and build their street cred among their friends, though they still prefer to stay under-the-radar about their collection to the general public, Aw says.
Today, Mighty Jaxx’s products are manufactured in nearly 20 different factories in Shenzhen and Guangzhou. It set up its first overseas office in Shanghai last year and is planning to open its second one in Suzhou by the end of 2019, according to Aw.
Besides growing Chinese affluence, Aw credits his company’s success to a greater exposure to Western influences and China’s own unique brand of pop culture taking off domestically.
He points to one of China’s biggest blockbusters Monster Hunt, a fantasy martial arts film of how monsters live among humans.
Mighty Jaxx’s celestial chicken fairy deity is aimed at the Hong Kong and mainland China market. Photo: Mighty Jaxx
“Outside China, you wouldn’t know what the hell it’s about. But the Chinese are creating their own unique narrative and developing their own intellectual property … That’s when we know the demand for original creation in different forms is truly there,” Aw says.
Likewise, consumers live in an age of a “mishmash of pop cultures and crossovers” and “subcultures becoming mainstream”, he says.
Citing how the business has teamed up with Team Hero, a China e-sports team comprising professional computer gamers, to roll out new figurines, Aw says: “It doesn’t mean that tattoo artists, skateboarders don’t buytoys … What seems to be separate demographics areconverging to become a multibillion-dollar market.”
Aw says the company is planning to expand from its current business model based on direct selling to collectors, to e-commerce distribution channels like Taobao and Tmall by the end of 2019.
He hopes eventually to set up the firm’s first retail store in Shanghai, as he believes the future lies in experiential retail.
“China has been cultivating that openness in recent decades, and we’re still very curious and excited for new things to happen [in this market],” Aw says. ■
Chinese government advisers say Beijing has not reached direct intervention point but that could change if the violence continues
Military action would trigger international backlash, observers say, as US expresses concern over reported paramilitary movements and ‘erosion of Hong Kong’s autonomy’
Footage of trucks from the paramilitary People’s Armed Police in Shenzhen has circulated online. Photo: Handout
The unrest in Hong Kong does not yet warrant direct intervention by Beijing despite hardening public sentiment and calls for tougher action in mainland China, according to Chinese government advisers.
Shi Yinhong, an international relations expert at Renmin University and an adviser to the State Council – China’s cabinet – said China would risk damaging its ties with the United States and other major foreign powers, upsetting its own development and losing Hong Kong’s special status if it took the matter directly into its hands.
“I don’t think we need to use troops. Hong Kong police will gradually escalate their action and they haven’t exhausted their means,” Shi said, expressing a view shared by other mainland government advisers and academics.
But he warned that if the violence and chaos continued, it “won’t be too far away from reaching that point”.
A US State Department spokeswoman said the United States was “deeply concerned” about reports of paramilitary movements along the Hong Kong border and reiterated a US call for all sides to refrain from violence.
She said it was important for the Hong Kong government to respect “freedoms of speech and peaceful assembly” and for Beijing to adhere to its commitments to allow a high degree of autonomy for Hong Kong.
She said the protests reflected “broad and legitimate concerns about the erosion of Hong Kong’s autonomy”.
“The continued erosion of Hong Kong’s autonomy puts at risk its long-established special status in international affairs,” she said.
brought the city’s air traffic to a halt and triggered a huge backlash on the mainland
, where the public feel they have been wrongly targeted by the increasingly violent protesters. Many demanded the central government take action to end the chaos.
The tension deepened after US President Donald Trump, citing intelligence sources,
to the border with Hong Kong. Trump described the situation in the city as “tricky” and called on all sides to remain “calm and safe”.
Footage of trucks from the paramilitary People’s Armed Police rolling into Shenzhen began circulating online on Saturday.
Beijing ‘unlikely to intervene’ in Hong Kong as pressure mounts on police
But Shi and others said direct intervention would be too costly to China and would only be used when all other methods had been exhausted.
“As the trade war with the US goes on, Hong Kong’s importance to our financial system is getting bigger,” Shi said. “If Beijing intervenes with too much assertiveness, the US might revoke the preferential status of Hong Kong.”
He was referring to the US’ 1992 Hong Kong Policy Act which gives the city a special status. In June, American lawmakers introduced a bipartisan bill requiring the US government to examine Hong Kong’s autonomy annually to decide whether to extend the arrangement.
Losing that status could cripple the operations of many businesses based in Hong Kong, said Shen Dingli, a Shanghai-based international affairs expert.
A satellite image appears to show a close-up of Chinese military vehicles at Shenzhen Bay Sports Centre in Shenzhen. Photo: Maxar Technologies
Wang Yong, another specialist on international political economy with Peking University, agreed.
“There would be a lot of opposition from interest groups in the US. Hong Kong is the bridgehead for many multinational corporations and investors from Wall Street to get into the Chinese market,” said Wang, who also teaches at an academy affiliated with China’s Ministry of Foreign Affairs.
“Hong Kong and the Chinese government will need to handle this with extra care, so as not to give any ammunition to hawks in the United States.
“If Hong Kong is not handled properly, it could add tensions to the bilateral ties and ruin any prospect of a trade deal.”
China rejects requests for US warships to visit Hong Kong amid protests Pang Zhongying, an international relations specialist at Ocean University of China in Qingdao, said direct intervention could also damage China’s ties with other countries.
“The whole world is watching. Beijing has exercised restraint for two months and still hasn’t taken any clear action because this is not an easy choice,” said Pang, who is also a member of the Beijing-based Pangoal Institution, a think tank that advises several ministerial offices.
While some observers said Beijing was under political pressure to end the protests in Hong Kong before October 1 – the 70th anniversary of the founding of the People’s Republic, Shi said the central government would not lose patience so easily.
“National Day [on October 1] is an important time, but the Chinese government is not naive to believe there has to be peace under all heaven then,” he said.
“It’s only a bit more than a month from now, we can almost say for sure the trade war will still be on by then and a major turning point in Hong Kong is not likely to happen. But the celebration must go on.”
Image copyright EPAImage caption Officials say about 5,000 gathered for the fourth day of protests at the airport
Hong Kong International Airport cancelled all departures on Monday, as thousands of anti-government protesters occupied and caused disruption.
Passengers have been told not to travel to the airport, which is one of the world’s busiest transport hubs.
In a statement, officials blamed “seriously disrupted” operations.
Many of those protesting are critical of the actions of police, who on Sunday were filmed firing tear gas and rubber bullets at close range.
Some protesters wore bandages over their eyes in response to images of a woman bleeding heavily from her eye on Sunday, having reportedly been shot by a police projectile.
In a statement on Monday afternoon, Hong Kong’s Airport Authority said they were cancelling all flights that were not yet checked in.
More than 160 flights scheduled to leave after 18:00 local time (10:00 GMT) will now not depart.
Arrivals already heading into Hong Kong will still be allowed to land, but other scheduled flights have been cancelled.
Officials are now working to reopen the airport by 06:00 on Tuesday, a statement said.
Some passengers expressed annoyance at the disruption. “It’s very frustrating and scary for some people,” one man from Pakistan told the BBC. “We’ll just have to wait for our next flight.”
Helena Morgan, from the UK, said she was set to return to the UK to get her exam results on Thursday. “I’m hoping we get back for them and we’re not on a flight,” she said.
But others were more understanding of the protests. “I was expecting something, given all the news,” one arrival, Gurinda Singh, told Reuters news agency.
As rumours spread that police plan to move in on protesters on Monday evening, thousands opted to leave on foot. There are large backlogs for transport back into the centre, local reports say.
The BBC’s Stephen McDonell, who is at the scene, says the airport has effectively shut down while authorities work out how to deal with the crisis.
Hong Kong’s mass demonstrations and unrest show no sign of abating, more than two months after they were sparked by a controversial extradition bill.
Beijing officials have strongly condemned Sunday’s violence and linked violent protesters to “terrorism”.
Image copyright REUTERSImage caption Many of those who gathered carried signs condemning police conduct
What happened on Sunday?
On Sunday afternoon, a peaceful rally in the city’s Victoria Park led to clashes when protesters moved out of the area and marched along a major road despite a police ban.
There were confrontations in several central districts and police used rubber bullets in an attempt to disperse the demonstrators.
In the bustling central Wan Chai district, petrol bombs and bricks were thrown at police, who responded by charging at protesters.
A number of people, including a police officer, were injured in the clashes.
Videos on social media also showed officers storming enclosed railway stations and firing tear gas.
Footage inside another station showed officers firing what appeared to be rubber bullets at close range and several police officers beating people with batons.
Media caption Violence erupts in HK train stations
Local media outlets reported that suspected undercover police officers had dressed-up as protesters to make surprise arrests.
While protests in the city have turned increasingly violent, there were no reports of arrests during the three previous days of the airport sit-in.
What has the reaction been?
On Monday the Chinese authorities, who have not yet physically intervened to quell the unrest, used their strongest language yet to condemn violent protesters.
“Hong Kong’s radical demonstrators have repeatedly used extremely dangerous tools to attack police officers, which already constitutes a serious violent crime, and also shows the first signs of terrorism emerging,” Yang Guang, a spokesman for the Hong Kong and Macau Affairs Office (HKMAO), said at a press briefing.
“This wantonly tramples on Hong Kong’s rule of law and social order.”
Demonstrations started in June in opposition to a proposed extradition bill, which would have allowed suspected criminals to be sent to mainland China for trial.
Critics said it would undermine Hong Kong’s legal freedoms, and could be used to silence political dissidents.
Although the government has now suspended the bill, demonstrators want it to be fully withdrawn.
Their demands have broadened to include calls for an independent inquiry into alleged police brutality, and an amnesty for all arrested protesters.
Hong Kong is part of China but its citizens have more autonomy than those on the mainland.
It has a free press and judicial independence under the so-called “one country, two systems” approach – freedoms which activists fear are being increasingly eroded.
Chief executive Rupert Hogg says staff who ‘support or participate in illegal protests’ would face disciplinary action that ‘may include termination of employment’
Airline’s shares down 4.37 per cent on Monday morning to lowest level in 10 years, despite it complying with orders on Friday from China’s aviation authority
Cathay Pacific moved over the weekend to comply with new orders from China’s aviation authority. Photo: Bloomberg
Cathay Pacific has warned that it would sack staff taking part in illegal protests in Hong Kong, saying it would take a “zero tolerance” approach, as its shares slumped to their lowest level in 10 years in morning trading on Monday.
In a note to staff on Monday, chief executive Rupert Hogg said staff who “support or participate in illegal protests” would face disciplinary action that “could be serious and may include termination of employment”.
His warning indicated an escalation by the company, under pressure to crack down on employees after China’s civil aviation regulator said on Friday that airline staff supporting the Hong Kong protests would be barred from flights going to, from or through mainland China.
“We are all obliged to abide by law at all times,” Hogg said. “Cathay Pacific Group has a zero-tolerance approach to illegal activities. Specifically, in the current context, there will be disciplinary consequences for employees who support or participate in illegal protests. These consequences could be serious and may include termination of employment.”
By noon in Hong Kong, the stock had fallen 4.37 per cent to HK$9.85 (US$1.26), its lowest level since June 2009. Losses dragged the carrier’s parent company Swire Pacific down 5.4 per cent to HK$77.50, making it the worst performer on Hong Kong’s stock market during morning trading.
This was the lowest price since October 2018 for Swire, which owns 45 per cent of the airline. Air China, which owns 22.7 per cent of Cathay, also fell 1.53 per cent in Hong
On Friday, the Civil Aviation Administration of China (CAAC) told Hong Kong’s flagship carrier that any staff members who had taken part in what it called “illegal protests”, “violent actions” and “overly radical activities” would not be allowed to fly to or from the mainland, in a first warning shot at a Hong Kong-based corporate giant.
The CAAC also said that the airline would have to submit identification details of all crew operating all services using mainland China airspace, and that flights with unapproved crew lists would be barred. It gave the airline until Thursday to submit a detailed plan to improve its procedures.
Anti-extradition bill protesters join a sit-in protest at Hong Kong International Airport on Sunday. Photo: Reuters
Cathay Pacific had earlier said it would not stop staff members from taking part in demonstrations.
On Wednesday, Cathay Pacific chairman John Slosar said the company would not rein in staff for openly supporting the protests. “We certainly wouldn’t dream of telling them what they have to think about something,” Slosar said.
But in his second statement in two days in relations to the CAAC’s sanctions, Hogg said the “actions and words” of staff outside of work hours could have a “significant effect on the company”, adding that the actions of a few of Cathay’s 34,000 employees would be seen as a company position.
He also asked staff to not “support or participate” in the illegal protest at the airport, saying the carrier was concerned that the protests could become disorderly and violent.
No flights by Cathay Pacific, nor by its subsidiaries Cathay Dragon or HK Express, were delayed or cancelled on Saturday or Sunday, the company said.
The CAAC’s move was widely seen as a clear warning to Hong Kong’s business community to toe Beijing’s line to pressure ongoing anti-government protests in the city that have been taking place for over two months.
Despite the airline acting over the weekend to comply with the rules, Chinese state media continued to put pressure on the company.
Global Times, a tabloid associated with Communist Party mouthpiece People’s Daily, said on Sunday the airline had still not allayed all concerns despite its adjustments to comply with the ruling.
Carrie Lam’s remarks about Beijing’s sovereignty ‘add fuel to the fire’, analysts warn
“These are only small steps [showing] that Cathay Pacific is heading towards the right direction, and their sincerity will need to be tested over time,” the tabloid said in an opinion article on Sunday.
It said 2,000 company staff joined citywide strikes last Monday, and cited the case of a pilot who was arrested and charged with rioting during a demonstration on July 28.
“Cathay Pacific has touched on this behaviour lightly, which has a huge impact on the trust the industry and the public have towards the company,” the article said.
State broadcaster CCTV published a short video on Weibo on Monday morning of its anchor issuing further warnings to the airline, saying there were reports of staff continuing to join “illegal gatherings” and asking tourists not to go to Hong Kong.
“If this continues, it’s not a matter of whether or not people would still want to come to Hong Kong, but whether they would still want to be on your airline,” Kang Hui said in a one-minute video.
“Let me send a friendly reminder: one would not be in trouble had one not asked for it,” Kang said, in Mandarin and then in English, translating the popular Chinese internet meme phrase “No zuo no die” and claiming some Cathay Pacific staff pretended not to understand Mandarin. Cantonese is the dominant language in Hong Kong.
Elsewhere, the company announced that two of its airport employees
for leaking passenger information about a Hong Kong police soccer team who had been on a flight to mainland China. It has also suspended the pilot who was among 44 people charged with rioting on July 28.
Although the company does not clearly specify its country-by-country performance, China and Hong Kong produced half of all its 2018 revenue – HK$57 billion of a total of HK$111 billion. A fifth of all the carrier’s flight are to and from the mainland.
CHINDIA ALERT: You'll be living in their world, very soon 