Special Report: How murder, kidnappings and miscalculation set off Hong Kong’s revolt

By David Lague, James Pomfret and Greg Torode

HONG KONG (Reuters) – Hong Kong leader Carrie Lam says the plan that ignited the revolt in her city was born of a straightforward quest for justice.

While on a trip to Taiwan, a Hong Kong man strangled his Hong Kong girlfriend, then returned home and confessed. The city lacked an extradition pact with Taiwan, and Lam argued the only way to send him back for trial was new laws that also would enable sending criminal suspects to mainland China. She dismissed fears about the proposal – which would mean Hong Kong residents could face trial in China’s Communist Party-controlled courts – and pushed ahead.

As protests raged this summer, even in private Lam kept to her story that she, not Beijing, was the prime mover, driven by “compassion” for the young victim’s devastated parents. “This is not something instructed, coerced by the central government,” she told a room of Hong Kong businesspeople at a talk in August.

A Reuters examination has found a far more complicated story. Officials in Beijing first began pushing for an extradition law two decades ago. This pressure to extend the arm of Chinese law into Hong Kong’s independent British-style legal system intensified in 2017, a year before the slaying and two years before Lam’s administration announced its extradition bill. The impetus came from the Central Commission for Discipline Inspection (CCDI), the Communist Party’s powerful internal anti-corruption body, which has been spearheading Chinese President Xi Jinping’s mass anti-graft campaign.

Xi’s crackdown spilled over dramatically into the streets of Hong Kong in the early hours of January 27, 2017. Among the targets of CCDI investigators at the time, two mainland Chinese officials with knowledge of the probe told Reuters, was a Chinese billionaire living in the city named Xiao Jianhua. A businessman with close ties to China’s political elite, Xiao was abducted that morning from his serviced apartment at the luxury Four Seasons Hotel. Unidentified captors whisked him out the entrance in a wheelchair with his head covered, a witness told Reuters.

The sensational kidnapping, widely reported at the time, was assumed by most people in this city of 7.5 million to have been the work of Chinese agents; Beijing has never commented publicly on the matter. Frustrated at the lack of legal means to get their hands on Xiao, the two Chinese officials told Reuters, the CCDI that same year began pressing mainland officials in charge of Hong Kong affairs about the urgent need for an extradition arrangement. The CCDI wanted a less politically damaging method than kidnapping for snaring fugitive mainlanders in Hong Kong, the officials said.

The two sides failed to strike a deal, but the killing in Taiwan would provide a new opening.

Pro-Beijing lawmakers in Hong Kong championed the calls for justice of the victim’s grieving parents, arranged an emotional news conference for them and pushed Lam’s administration to find a way to extradite the killer. One of China’s top officials for Hong Kong affairs pressed a senior Lam adviser in a private meeting in Beijing on the need to pass the proposal. Early in the crisis, when Lam privately proposed withdrawing the bill to quell the protests, senior Chinese officials rejected the move, only to relent months later as public fury mounted.

The extradition law would have been a boost to Chinese interests, a senior mainland official told Reuters, by eliminating the need to resort to kidnappings or other controversial extrajudicial acts in Hong Kong. The move would have helped us “avoid such problems,” he said.

This account of how the extradition bill was launched, promoted and ultimately unraveled is based on more than 50 interviews with mainland officials, current and former Hong Kong government officials, members of Lam’s cabinet, associates and friends of the Hong Kong leader from her days as a student activist, and current and former lawmakers and police officers. Reuters also drew on the public record of debates and correspondence regarding the bill in the city’s legislature, the Legislative Council.

One finding that emerges is how out of touch the mainland leadership and the people it has hand-picked to run Hong Kong were with public sentiment. When China reclaimed Hong Kong from British rule in 1997, it guaranteed under a “one-country, two-systems” formula that the city would keep its treasured freedoms for 50 years. In effect, the promise postponed a decision on how an authoritarian one-party state would absorb a liberty-loving capitalist city. After two decades of determined grassroots political work by Beijing to win hearts and minds, some of the bill’s leading supporters admit they were stunned by the hostility of so many Hong Kong citizens to Chinese rule.

“I was shocked to discover that in fact a very large proportion of us, people in Hong Kong, do not really feel at all comfortable with one-country, two-systems,” said Ronny Tong, a member of Lam’s top advisory body, the Executive Council, in an interview with Reuters. “How do you deal with this lack of confidence if not outright hatred about Beijing? How do you deal with it?”

In a written statement to Reuters, Lam’s office said the bill “was initiated, introduced and taken forward” by her administration. The central government in Beijing “understood” why the bill had to be introduced, the statement said, and “respected the view of the Chief Executive” and “supported her all the way.”

Chinese government authorities did not respond to questions for this article.

THE ‘MYSTERY’ OF CARRIE LAM

The city’s revolt has dealt a major setback to Xi Jinping, coming as he contends with a damaging trade war with the United States. And in a blow to China’s dreams of reunifying Taiwan with the mainland, the crisis appears to have boosted the popularity of Taiwan’s independence leaning President, Tsai Ing-wen, who faces the polls in January.

For Carrie Lam, 62 years old, the miscalculation has been crushing.

Her failure to grasp the public’s suspicion of the mainland’s legal system has shattered a reputation for competence built up over a 39-year career in public service. In the past she was sometimes referred to by admirers as Hong Kong’s Iron Lady, for a resolute manner reminiscent of Margaret Thatcher’s. Now, some say a combination of her willfulness and her decades at the top levels of Hong Kong’s insular public service blinded her to the political danger of the extradition bill.

“The one mystery, the one puzzle is, how is it possible that Carrie Lam didn’t see the implications of such a proposal?” said Margaret Ng, a barrister who was a longtime lawmaker in the pro-democracy camp.

Born into a working class family, Lam grew up in a small apartment in the suburb of Wan Chai on Hong Kong island. Like many of the city’s government elite, she is a Catholic, educated in the city’s Catholic schools, and she remains devout. At St. Francis’ Canossian School and then St. Francis’ Canossian College, she was a star student.

In a 2013 radio interview, she revealed a glimpse of a fierce competitive streak. Lam told her interviewer of an enduring memory of her school days: The single occasion she failed to finish at the top of her class in a big exam. She said she cried.

When she began studying at the University of Hong Kong, Lam intended to be a social worker. Lee Wing-tat, a former lawmaker from the pro-democracy camp, was a fellow student. He recalls Lam was an activist in those days, taking part in protests. A citation when she was awarded an honorary degree in 2013 described how Lam had campaigned for better treatment for poor Chinese fishing families from the British colonial government.

She was intensely interested in welfare for the underprivileged, Lee said. And she was already a talented organizer. “You give her a job and she will deliver results,” Lee said.

In 1979, as post-Maoist China was opening up, students from Hong Kong were invited to send a delegation to Beijing to visit elite universities, Lee said. The Democracy Wall movement was in full swing there, with big posters calling for political and social reform appearing on a long brick wall. The Hong Kong students wanted to meet prominent liberals and soak up the atmosphere, Lee said. Lam was involved in negotiating the visit with the tough Communist bureaucrats at Xinhua News Agency, then Beijing’s unofficial mission in the British colony.

“They made it very difficult for her,” Lee recalls. “They didn’t want us to meet them.” The visit went ahead, and a highlight was a banquet Lam attended where a leading liberal journalist was a guest.

“At that time, Carrie was not so conservative,” Lee said. “She was a democrat. Just like me. After government, things changed.”

Lam abandoned plans to become a social worker and joined the colonial Hong Kong government in 1980 as an administrative officer, the elite cadre of officials who are given broad exposure to different government roles as preparation for promotion to more senior posts.

In the Hong Kong civil service, well paid administrative officers have traditionally enjoyed considerable power and prestige in a political system without the scrutiny public servants receive in a full democracy. Lam rose fast and embraced challenging roles. Her critics say she also became arrogant and dismissive of advice from peers and subordinates.

“She has never been known to be a team player,” says retired civil servant Anson Chan, who served as Hong Kong’s deputy leader before and after the handover. “That has a lot to do with her character and was also instrumental in her spectacular downfall.”

Lam’s office declined to respond to “speculations or third parties’ comments” about her.

Others paint a different picture. Veteran social activist Ho Hei-wah, director of the Society for Community Organization, said he began working closely with Lam in the 1980s, when she led successful efforts to reunite Hong Kong families with mainland relatives. “She is a caring person,” he said. “From the beginning until today.”

Ho said he helped persuade Lam to become deputy to the city’s former leader, Leung Chun-ying, in 2012. She had planned to retire to spend more time with her mathematician husband and two sons, Ho said, but agreed to take the post because she felt she could continue to serve the city.

Hong Kong had been under mainland rule for 15 years. Xi Jinping was about to assume power. And Beijing was about to begin flexing its muscle more forcefully.

In the final months of British rule, Hong Kong had passed laws barring the extradition of suspects to the mainland as an added protection to the freedoms promised under the one-country, two-systems formula. Beijing began making demands to reverse these provisions almost immediately after the handover, according to the Hong Kong government officials involved in talks about the issue. They say their mainland counterparts regarded it as an affront that the newly recovered territory would allow extradition to some foreign countries – even to America and Britain – but not to the motherland.

The discussions went nowhere, and on Leung and Lam’s watch, China began taking matters into its own hands.

A BILLIONAIRE VANISHES

One of the first major extralegal arrests to gain public attention was the disappearance in 2015 of five booksellers of local publisher Mighty Current.

The publisher specialized in muckraking books on the private lives and business dealings of China’s top leadership, including Xi himself. It later emerged that two of the men had been kidnapped – one in Hong Kong, one from Thailand – and taken to the mainland. A third later detailed how he was grabbed by Chinese agents while visiting southern China and held captive for eight months. He fled to Taiwan this April as Lam’s government sought to ram through the extradition bill.

Hong Kong leaders knew about these extralegal detentions but were unwilling to publicly call out mainland authorities over them. Lam herself was closely informed about one case.

In 2013, a Hong Kong resident, Pan Weixi, and his wife were grabbed off the street in the city and smuggled to the mainland by speedboat. The family wrote to Lam describing the abduction in detail and appealing for her help in obtaining the businessman’s release, according to people with knowledge of the case. Hong Kong police confirmed to Reuters that they sent officers to Guangdong who helped secure the wife’s freedom and escorted her home. The family later learned that Pan was sentenced to 16 years in jail in Guangdong Province. A Hong Kong police investigation into the case remains open.

After the bookseller abductions sparked an outcry, Hong Kong officials revealed in May 2016 they were in discussions with Beijing over formal extradition procedures. The talks failed, according to lawyers involved, because Beijing was unwilling to accept human-rights and legal safeguards.

Then, in early 2017, came the brazen abduction of Xiao, the billionaire who was a target of the powerful anti-graft agency CCDI. A Hong Kong government official said Xiao had crossed the border with the mainland. The city was scandalized.

These controversies didn’t impede Lam’s rise. As Leung’s deputy, she was closely involved in the government’s handling of the Umbrella Movement, a 79-day campaign of civil disobedience in 2014 in which protesters demanding full democracy occupied major thoroughfares. The movement got its name from demonstrators’ use of umbrellas to ward off police. Lam made conciliatory gestures, meeting protesters for talks, but that failed to produce a breakthrough. Police eventually cleared the protesters, and some key leaders were later prosecuted.

In March 2017, Lam was handpicked as China’s candidate to succeed Leung and easily won election by a committee of about 1,200 mostly pro-Beijing figures. She won plaudits in China for pushing through some unpopular policies. Within weeks of taking office in July 2017, her administration announced a controversial plan to let mainland officials stationed inside a Hong Kong train terminus enforce Chinese laws on travelers passing through.

Critics said this and other moves further eroded the city’s autonomy. Lam’s office rejected the criticism, saying the terminus arrangement made for more convenient travel.

Xi later praised Lam for her courage in taking on “difficult challenges,” after the two met in Beijing in December 2018, state media reported.

Two months later came the killing in Taiwan. The two young Hong Kongers – Poon Hiu-wing and her boyfriend, Chan Tong-kai – quarreled while on a trip to Taipei. Furious, Chan bashed Poon’s head against a wall and strangled her, packed her body in a suitcase and later left it at a park in the Taiwanese capital, according to a Hong Kong court judgment. Chan was arrested in March after returning to Hong Kong and confessed. He was convicted and jailed for crimes committed after his return, including using Poon’s ATM card to withdraw money. But because the slaying took place in Taipei, he would need to be sent to Taiwan to be tried for the killing.

Chan’s lawyer didn’t respond to questions for this article.

Lam later told a news conference that since the killing, her government had been spending “quite a bit of time” devising extradition proposals. In the meantime, Beijing’s political allies in the city started agitating for change.

The initial moves were low-key and attracted little attention. On May 4 last year, a pro-Beijing lawmaker, Priscilla Leung, called on the city’s Legislative Council to consider discussing judicial cooperation with Taiwan and “other places,” according to the minutes of a panel session in the council. Leung, a law professor, chairs a legislative panel on judicial affairs. She had no comment.

Within days, Leung’s proposal got a push from two lawmakers with strong links to Beijing. Starry Lee and Holden Chow went further in a letter to Leung, calling on the government to begin moves to conclude an extradition agreement with Taiwan “as soon as possible,” council records show. Lee heads the city’s biggest political party, the Democratic Alliance for the Betterment and Progress of Hong Kong, which hews closely to Beijing’s official line. Chow is a vice chairman and the party’s highest-profile young leader.

‘THIS WILL DESTROY HONG KONG’

The next month, one of Lam’s top lieutenants dropped a clue that changing the law on extradition was under consideration.

In answer to a written question from Starry Lee about the efforts to return the killer to Taipei, Secretary for Security John Lee said Hong Kong was studying how to handle the case. And he reminded her that under the law, the city was barred from sending suspects to any region of the People’s Republic of China. Hong Kong shares Beijing’s view that Taiwan is part of the PRC. Taiwan vehemently disagrees.

Lee, 62, was a 33-year veteran of the Hong Kong police. He joined the government’s Security Bureau, which oversees the police and other law enforcement units, as deputy head in 2012 and was promoted to lead the bureau when Lam took office. Cops who served with him describe Lee as a shrewd and incorruptible crime fighter who was trusted with sensitive investigations before and after the handover. As security chief, Lee is responsible for liaison with the mainland’s powerful law enforcement and intelligence agencies.

Poon’s family was begging for justice. Their pleas reached Lam. The chief executive said she was moved and promised to help. Lam later gave a tearful television interview to local broadcaster TVB in which she said Poon’s heartbroken father had been persistent, writing five letters to the government seeking justice for his daughter.

“That’s why I told John Lee that you can’t just write a letter back to them and only say, ‘Sorry, Mr. Poon, there isn’t a legal basis for this, sorry’,” Lam said. “I said you must find a way, and not let any possibility go.”

Poon’s father declined to comment.

Starry Lee and Holden Chow continued rallying support for the Poon family and for changing the extradition law. In mid-February, they appeared at a press conference with the mother.

“Even though it’s been a year since my daughter was murdered, my husband and I can’t accept this reality,” Poon’s mother, Kui Yin-fun, said, sobbing. “I always think of this cold-blooded and cruel scene. How the murderer dragged a suitcase, and moved the corpse, and then left it in the open, so that wild dogs could eat it.”

The only way to help her daughter now, Kui told the media crowd, was justice: extradite the killer. Then Holden Chow and Starry Lee took questions. Asked whether amending the law was the sole way to deal with the case, Starry Lee said: “In principle, without this amendment of the legislation, this cannot be done.”

Asked about his championing of the bill, Chow told Reuters the plan was introduced “to deal with the Taiwan murder case and to provide the victim’s family justice.” Unfortunately, he added, the Lam administration was unable to explain the human-rights protections contained in the bill and persuade the public to embrace it. Starry Lee didn’t respond to a request for comment.

There was broad support for the Poon family in Hong Kong. But that didn’t translate into support for extradition to the mainland.

That same week, a Legislative Council agenda included an item on judicial cooperation with Taiwan and “other places.” The next day, the government showed its hand, revealing in an official briefing note that to resolve the Poon case, it was proposing amendments that would remove the ban on extraditions to other parts of China. The ban, it said, had created “loopholes,” allowing the city to become a haven for criminals.

Pro-democracy lawmaker Dennis Kwok was outraged. The next day, he confronted security chief John Lee in a meeting room at the Legislative Council.

“I told him don’t do this,” Kwok told Reuters. “I told him it is a crazy idea. I lost my cool with him. I said this will destroy Hong Kong. Don’t do it!”

Lee ploughed ahead, telling reporters in March that the restrictions on extradition to other parts of China were a “chain that has been put on my feet.”

Chinese leaders publicly began throwing their weight behind the effort. In March, Chen Zhimin, a former vice minister of public security, linked the bill to Xi’s crackdown. He told Hong Kong public broadcaster RTHK a pact was needed because there were more than 300 fugitives on China’s wanted list hiding in the city. Chen also revealed that before he left his post in 2017, mainland officials had been discussing an extradition pact with their Hong Kong counterparts – including John Lee.

In a statement to Reuters, Lee said it was “totally unfounded and erroneous” to suggest that the mainland and pro-Beijing parties were the driving force behind the bill. The alleged abductions of billionaire Xiao and others were irrelevant, he said: The trigger was the Poon killing, which exposed gaps in the law. The central government, he added, respected Lam’s views and “supported her all the way.”

By May, higher officials – including a member of the Party’s top decision-making body, the seven-member Politburo Standing Committee – were publicly backing Lam’s bill. Chinese leaders were also mobilizing support behind the scenes.

One was Zhang Xiaoming, director of the Hong Kong and Macau Affairs Office, the body that coordinates Beijing’s policy for the city. In May, Ronny Tong, the influential Lam adviser and top barrister, led a delegation of his political allies to the Chinese capital. In a 90-minute meeting, Zhang explained the importance of the extradition bill to China and Hong Kong, according to two delegation members. Zhang took a “hardline” position, they said, telling the visitors it was urgent that Hong Kong pass the measures.

Chinese authorities didn’t respond to questions about the roles of Zhang, Chen and other top leaders.

Outside of Lam’s circle, alarm was spreading through Hong Kong. Even the normally pro-Beijing business community was unnerved by the bill. People began coming out to protest by the hundreds, then by the thousands, then tens of thousands and more. On June 9, the government was shaken when an estimated one million people took to the streets in a peaceful protest. Demonstrations later turned violent.

On June 11, lawmakers were preparing for a second reading of the bill, scheduled for the next day. Pro-Beijing lawmakers had the numbers if the bill came to a vote. That day, protesters began surrounding the Legislative Council building in an effort to block the session.

With the demonstration snowballing, the Hong Kong liaison office, China’s official representative body in the city, had unwelcome news to report that night. According to two Chinese officials with knowledge of the matter, the office informed the CCDI in Beijing that the encircling protesters made it impossible to hold the debate the following morning. The CCDI suggested that lawmakers be assembled at another venue to vote, the officials said.

The protest had effectively shut down the legislature, however, preventing the second reading. Soon after, Lam crossed into the mainland and paid a call at Bauhinia Villa, a resort in the suburbs of Shenzhen where the Chinese leadership had set up a secret command center to manage the crisis.

There, Lam met with one of China’s highest leaders – Vice Premier Han Zheng, the Politburo Standing Committee member who had earlier signaled support for the bill. As Reuters reported last month, she proposed suspending the legislation. After consulting with other leaders in Beijing, Han agreed.

On June 15, Lam announced she was freezing the bill. The protesters, unmollified, insisted on a total scrapping. On July 1, a crowd smashed its way into the Legislative Council and ransacked the building.

The pressure began telling on the city leader once lauded by Xi for her steeliness. In August, at times choking up, Lam told a private meeting of businesspeople that she would quit if allowed to do so.

“Hong Kong has been turned upside down, and my life has been turned upside down,” she said, according to an audio tape obtained by Reuters. The bill was “very much prompted by our compassion” for the Poon family, “and this has proven to be very unwise.” It turned out, she said, that there was “this huge degree of fear and anxiety amongst people of Hong Kong vis-a-vis the mainland of China, which we were not sensitive enough to feel and grasp.”

In late August, Reuters revealed that officials in Beijing had rejected a proposal from Lam to scrap the bill altogether earlier in the summer and defuse the crisis.

On September 3, Lam declared the bill would be formally withdrawn. But the protests continued as the movement morphed into a broad pursuit of democratic rights.

Chan Tong-kai was released after serving 19 months in prison in Hong Kong. On October 18, five days before walking free, he revealed there was no need for an extradition deal in his case. In a letter to Lam, Chan said he was volunteering to return to Taipei to face justice. He remains free in Hong Kong while Lam and Taiwan wrangle over the details.

(Reporting by David Lague, James Pomfret and Greg Torode. Additional reporting by Anne Marie Roantree and Clare Jim in Hong Kong. Editing by Peter Hirschberg.)

Hong Kong protesters seek international support on rights

By Felix Tam

HONG KONG (Reuters) – Hong Kong protesters rallied outside diplomatic missions on Thursday to urge foreign governments to follow the United States and pass human rights bills to raise pressure on Beijing and support their pro-democracy campaign.

U.S. President Donald Trump signed legislation last month requiring the State Department to certify, at least once a year, that Hong Kong retains enough autonomy from Beijing to justify favorable U.S. trading terms.

About 1,000 people, most of them dressed in black and wearing face masks, marched on a route that took them by the consulates of Australia, Britain, the European Union, the United States, Japan and Canada, to drop off a petition.

British, EU and U.S. diplomats came out to receive it and took photographs with the protesters.

“What happens in Hong Kong is not just a local issue, it is about human rights and democracy. Foreign governments should understand how this city is being suppressed,” said Suki Chan, who participated in the protest.

“We need to continue to seek international attention and let them know this movement is not losing momentum.”

Hong Kong has been rattled for more than six months by anti-government protests amid growing anger over what many see as Chinese meddling in the freedoms promised to the former British colony when it returned to Chinese rule in 1997.

Beijing has denied such meddling, blaming the unrest on “foreign forces” and saying attempts to interfere in the city are doomed to fail.

The U.S. legislation, which also threatens sanctions for human rights violations, followed similar “citizen diplomacy” petitions in Hong Kong this year and has been cheered by protesters.

Beijing denounced the U.S. legislation and Hong Kong’s government said it sent the wrong signal to the demonstrators and increased economic uncertainty in Hong Kong, a major financial hub.

The marchers’ petition condemned what it called police brutality and urged governments to pass legislation to punish Chinese and Hong Kong officials by denying them visas and freezing their assets.

The police say they have acted with restraint.

Police said separately on Thursday they had arrested four people suspected of money laundering in relation to the protests and had frozen HK$70 million ($9 million) in bank deposits.

Chan Wai Kei, from the police’s financial investigation and narcotics bureau, told reporters the four were part of a group that had asked for donations for arrested and injured protesters but used some of the money for personal investments.

‘LOVE CHINA, LOVE MACAU’

Beijing says it is committed to the “one country, two systems” formula that guarantees a high degree of autonomy.

Chinese President Xi Jinping has this week visited the neighboring gambling hub of Macau, a former Portuguese colony, which he praised on Thursday, drawing a contrast with the Hong Kong protests.

“Love China, love Macau has become the core value of the whole society,” Xi told local officials.

The Macau government and “all parts of society deeply understand that harmony leads to prosperity, (and the importance of) unity, negotiation, no argument, no internal conflict, resisting external interference.”

On Friday Xi was due to attend ceremonies for the 20th anniversary of Macau’s handover to China, and was expected to announce economic perks as a reward for its stability and loyalty.

At the U.S. consulate in Hong Kong, protesters called for U.S. Congress to pass a “Be Water Act”, legislation championed by Missouri Senator Josh Hawley and named after a protest slogan borrowed from martial arts legend Bruce Lee.

The bill would freeze assets of Chinese nationals and state-owned enterprises believed to have contributed to suppressing freedom of speech in Hong Kong.

Thursday also marked the 35th anniversary of a treaty between China and Britain on Hong Kong’s future, which set the stage for its handover.

British Foreign secretary Dominic Raab urged China in a statement to open dialogue with the protesters and respect the commitments in the treaty.

The Chinese foreign ministry said in 2017 the 1984 joint declaration, signed by then British Prime Minister Margaret Thatcher and Chinese Premier Zhao Ziyang, was a historical document that no longer had any practical significance.

Hong Kong’s special status, which helped it grow into a global financial center and avoid U.S. tariffs on Chinese imports, is important to Beijing, which uses the city as its main gateway to global capital.

(Reporting by Felix Tam, Mari Saito, Clare Jim, Donny Kwok; Writing by Marius Zaharia; Editing by Robert Birsel and Frances Kerry)

China says in touch with U.S. on signing of Phase 1 trade deal

China says in touch with U.S. on signing of Phase 1 trade deal
BEIJING (Reuters) – China and the United States are in touch over the signing of their Phase 1 trade deal, China’s commerce ministry said, which will see lower U.S. tariffs on Chinese goods and higher Chinese purchases of U.S. farm, energy and manufactured goods.

The Phase 1 deal was announced last week after more than two years of on-and-off trade talks, although neither side has released many specific details of the agreement.

Both the Chinese and U.S. trade teams are in close communication, Gao Feng, a spokesman at the Chinese commerce ministry, told reporters at a regular briefing on Thursday, adding there is no specific information on the deal to disclose currently.

“After the official signing of the deal, the content of the agreement will be made public,” Gao said.

U.S. officials say China agreed to increase purchases of U.S. products and services by at least $200 billion over the next two years.

According to Washington, that would include additional purchases of U.S. farm products of $32 billion over two years. That would average an annual total of about $40 billion, compared to a baseline of $24 billion in 2017 before the trade war started.

Chinese officials have so far not publicly confirmed much of Washington’s version – especially on goods purchase commitments. But China said on Friday when the deal was announced that it will import more U.S. wheat, rice, corn, energy, pharmaceuticals and financial services.

Earlier on Thursday, China unveiled a new list of tariff exemptions for U.S. imports, mostly chemical products, days after the world’s two largest economies announced the Phase 1 deal. China said the second part of the waiver list will be released at an appropriate time.

Washington said the deal also includes stronger Chinese legal protections for patents, trademarks, copyrights, including improved criminal and civil procedures to combat online infringement, pirated and counterfeit goods.

The two countries have reached a consensus over the protection of trade secrets, guarding intellectual property rights for pharmaceutical products, and cracking down on counterfeits and pirated goods on e-commerce platforms, Chinese Vice Minister of Commerce Wang Shouwen said on Friday.

China will step up protection of intellectual property but at its own pace, Wang said.

(Reporting by Stella Qiu and Martin Pollard; Writing by Ryan Woo; Editing by Muralikumar Anantharaman, Lincoln Feast and Giles Elgood)

Hong Kong mall protests flare with leader Lam in Beijing

Hong Kong mall protests flare with leader Lam in Beijing
By Kate O’Donnell-Lamb and Sarah Wu

HONG KONG (Reuters) – Small groups of protesters gathered in shopping malls across Hong Kong on Sunday amid brief scuffles with riot police as attention turned to an upcoming meeting between Hong Kong’s leader and China’s president.

Hong Kong leader Carrie Lam is scheduled to meet Chinese leader Xi Jinping in Beijing on Monday and some observers say the visit could yield fresh directives including a possible cabinet reshuffle.

Lam, however, appeared to play that down before she left, saying the first task was to curb violence and restore order.

On Sunday in the peak shopping season ahead of Christmas, groups of masked protesters, clad in black, marched through several malls chanting slogans including “Fight for freedom” and “Return justice to us”.

Riot police used pepper spray on crowds in one Kowloon mall, local media reported.

In Shatin, Reuters witnessed police firing a tear gas canister outside the New Town Plaza mall, and several people were taken away after entrances and walkways were blocked, glass panels smashed, and graffiti sprayed.

Police said in a statement that some shops had been damaged and that a smoke bomb had been set off. Many shops closed early.

In the evening, several hundred protesters held a vigil for a protester who fell to his death outside a luxury mall exactly six months ago after holding up a banner. Some laid white flowers, as others softly hummed ‘Sing Hallelujah’ to commemorate Leung Ling-kit, known as “raincoat man” for what he wore at the time.

“He is the first person to die because of this revolution,” said Tina, 18. “I came tonight because I want to always remember that we can’t give up and we have to keep fighting for freedom.”

Several hundred people, many social workers, gathered earlier to reiterate demands that include full democracy and an independent inquiry into allegations of police brutality. Some called for more mass strikes, while others sat at tables to write Christmas cards to those who have been jailed.

Separately, a pro-government rally drew over a thousand people, with participants denouncing the use of violence during protests.

Hong Kong has been embroiled in its worst political crisis in decades since June with anti-government protests posing a populist challenge to China’s Xi and complicating ties between China and the United States at a time of heightened tensions including over trade.

Demonstrators have railed against what they see as Chinese meddling in freedoms promised to Hong Kong when the former British colony returned to Chinese rule in 1997, gradually ramping up the use of violence over many months of unrest.

They also say they are responding to excessive use of force by police. Last Sunday, a protest march drew around 800,000 people, according to organizers, suggesting the movement still has significant public support.

The government is planning more public dialogue through social media channels, as well as a second town hall session with top officials to try to bridge differences.

Despite the febrile public mood, China maintains it is committed to the “one country, two systems” formula granting Hong Kong autonomy and says it fully supports Lam.

(Additional reporting by Twinnie Siu and Noah Sin; writing by James Pomfret; editing by Jason Neely)

Take Five: What’s the deal?

LONDON (Reuters) –

1/AFTER PHASE ONE COMES PHASE TWO

U.S. President Donald Trump and Chinese officials have agreed to a “phase one” trade deal that includes cutting U.S. tariffs on Chinese goods.

Washington has agreed to suspend tariffs on $160 billion in Chinese goods due to go into effect on Dec. 15, Trump said, and cut existing tariffs to 7.5%.

The agreement covers intellectual property, technology transfer, agriculture, financial services, currency, and foreign exchange, according to Washington’s Trade Representative.

Neither side offered specific details on the amount of U.S. agricultural goods Beijing had agreed to buy – a key sticking point of the lengthy deal negotiations. News of the trade deal saw U.S. stocks romp to fresh record levels. But few doubt that the rollercoaster is over yet.

While Trump announced that “phase two” trade talks would start immediately, Beijing made it clear that moving to the next stage of the trade negotiations would depend on implementing phase one first. While markets cheered the December rally, few expect the trade deal rollercoaster ride to be quite over yet.

 

2/MORE NICE SURPRISES, PLEASE!

First clues as to whether euro zone powerhouse Germany can avoid a fourth quarter recession emerge on Monday when advance PMI readings for November are released globally.

The economic activity surveys, a key barometer of economic health, come after Citi’s economic surprise index showed euro zone economic data beating consensus expectations at the fastest pace since February 2018. The latest surprise was a 1.2% rise in German exports in October, defying forecasts of a contraction.

Hopes are high that exports and private consumption, which helped Germany skirt recession, will hold up. Last month’s PMI data showed manufacturing remained in deep contraction across the bloc.

A Reuters poll showed expectations of a modestly higher 46.0 manufacturing reading in the euro zone but that’s still far below the 50-mark which separates growth from contraction. Services, which have held up better so far, are expected to grow modestly from November, at 52.0.

Graphic: Citi surprise index most positive since Feb 2018, https://fingfx.thomsonreuters.com/gfx/mkt/12/9901/9813/Citi%20index.png

3/BEWARE THE BOJ

Japan’s central bank meets on Thursday with the global economic outlook “relatively bright,” according to Governor Haruhiko Kuroda.

Growth green shoots, a possible U.S.-China trade deal and something nearing certainty on Brexit has got almost everyone expecting the BOJ will do very little: Interest rates are at -0.1% and the bank has eased off bond buying – even though the bank’s balance sheet is bursting with negative-yielding paper.

The government has flagged a gigantic $122 billion stimulus package to keep things moving after next year’s Olympics. Yet the business mood is dire with Friday’s “tankan” survey at its lowest reading since 2013. Big manufacturers – especially automakers – are gloomiest, as the trade war takes its toll.

The Bank of Japan has justified standing pat on the view that robust domestic demand will cushion the hit. It blames the weather and a sales tax for recent patchy data. But another week of dollar weakness will not have gone unnoticed in Tokyo, where a cheaper yen is much desired. A surprise on Tuesday export data forecast to show further contraction and Thursday’s inflation reading could jolt yen longs out of their slumber.

4/JOHNSON, AND MORE JOHNSON

A thumping election win for Prime Minister Boris Johnson has raised hopes that 3-1/2 years of Brexit-fuelled chaos will finally end.

Expectations that he may swing slightly nearer the centre of his Conservative Party, sidelining the fiercest eurosceptics, and ease the path towards a free-trade deal with the European Union have sent sterling and British shares surging.

Yet there are signs of caution, with sterling stalling around $1.35. Further gains will hinge on Johnson’s new cabinet, how the global growth and trade war backdrop pans out and what the Bank of England might do.

At the central bank’s Dec. 19 meeting, markets will watch for any shifts in its views on inflation, the UK economy and the interest rate outlook for 2020. While policymakers have skewed dovish of late amid a torrent of dismal data and sub-target inflation, the election result – and a hoped-for growth recovery – have seen money markets halve the probability of an end-2020 cut to 25%.

Without more clarity, investors might just be wary of chasing sterling much higher.

Graphic: UK economic indicators, https://fingfx.thomsonreuters.com/gfx/mkt/12/9958/9869/GB.png

5/SWEDEN RETURNS TO ZERO?

While most central banks are busy pondering whether to hold or cut interest rates, Sweden may swim against the tide and deliver a 25 basis-point rate hike on Dec. 19. That will end half a decade of negative interest rates in the country and make it the first in Europe to pull borrowing costs from sub-zero territory.

Policymakers flagged a rate hike in October and recent data showing inflation rising to 1.7% — just off the 2% target — cemented those expectations. The crown’s rallied to eight-month highs versus the euro, up almost 5% since October.

The proposed interest rate increase has its critics, who cite still-sluggish inflation and factory activity at its weakest since 2012.

Meanwhile, neighbouring Norway’s policy meeting, scheduled for the same day, may be less exciting as no change is expected. Investors remain baffled by the Norwegian crown’s weakness – despite policy makers delivering four rate hikes since Sept 2018, it’s at near record lows to the euro.

Graphic: Swedish crown , https://fingfx.thomsonreuters.com/gfx/mkt/12/9961/9872/crown.png

(Reporting by Alden Bentley in New York, Tom Westbrook in Singapore, Sujata Rao, Elizabeth Howcroft and Yoruk Bahceli in London, compiled by Karin Strohecker; edited by Philippa Fletcher)

Revolution 101: For hardened teens of Hong Kong protests, violence is one way forward

Revolution 101: For hardened teens of Hong Kong protests, violence is one way forward
By Tom Lasseter

HONG KONG (Reuters) – Fiona’s rebellion against the People’s Republic of China began slowly in the summer months, spreading across her 16-year-old life like a fever dream. The marches and protests, the standoffs with police, the lies to her parents. They’d all built on top of her old existence until she found herself, now, dressed in black, her face wrapped with a homemade balaclava that left only her eyes and a pale strip of skin visible. Her small hands were stained red.

It was just paint, she said, as she funneled liquid into balloons. The air around her stank of lighter fluid. Teenagers hurled Molotov cocktails toward police. Lines of archers roamed the grounds of the university they’d seized; now and then, they stopped to release metal-tipped arrows into the darkness, let fly with the hopes of finding the flesh of a cop.

Down below Fiona, rows of police flanked an intersection. Within a stone’s throw, Chinese soldiers stood in riot gear behind the gates of an outpost of the People’s Liberation Army, one of the most powerful militaries on the planet.

Fiona joined her first march on June 9, a schoolgirl making her way to the city’s financial district on a sunny day as people called out for freedom. It was now November 16, and she was one of more than 1,000 protesters swarming around and barricaded inside Hong Kong Polytechnic University. Because of their young age and the danger of arrest, Reuters is withholding the full names of Fiona and her comrades.

Night was falling. They were wild and free with their violence, but on the verge of being surrounded and pinned down.

The kids, which is what most of them were, buzzed back and forth like hornets, cleaning glass bottles at one station, filling them with lighter fluid and oil in another. An empty swimming pool was commandeered to practice flinging the Molotov cocktails, leaving burn marks skidded everywhere.

When front-line decisions needed to be made, clumps of protesters came together to form a jittering black nest – almost everyone was dressed from hood to mask to pants in black – yelling about whether to charge or pull back.

They were becoming something different from what they were, a metamorphosis that would have been difficult to imagine in orderly Hong Kong, a city where you line up neatly for an elevator door and crowds don’t step into an empty street until the signal changes. With each slap up against the police, each scramble down the subway stairs to avoid arrest as tear gas ate at their eyes, they hardened. They shifted back and forth between their old lives and their new – school uniforms and dinners with mom and dad, then pulling the masks over their faces once more. It was a dangerous balance.

“We may all be killed by the police. Yes,” said Fiona.

At the crucible of Polytechnic University, Fiona and the others crossed a line. Their movement has embraced the slogan of “be water,” of pushing forward with dramatic action and then pulling back suddenly, but here, the protesters hunkered down, holding a large chunk of territory in the middle of Hong Kong. In their hive of enraged adolescence, they were risking everything for a tomorrow that almost certainly won’t come – a Hong Kong that cleaves greater freedom from an increasingly powerful Chinese Communist Party.

In doing so, Fiona found moments bigger than what her life was before. “We call the experience of protest, like at PolyU, a dream,” she later explained.

But to speak of such things out loud, without the mask that she hid behind, without the throbbing crowds that made it seem within reach, is not possible outside, in the real Hong Kong.

The protesters have left traces of their hopes, confessions and fears across the city, in graffiti scrawled on bank buildings and bus stops alike. One line that’s appeared: “There may be no winners in this revolution but please stay to bear witness.”

GLOBAL REVERBERATIONS

The impact of Hong Kong’s protests, as they pass the half-year mark, is this: Kids with rocks and bottles have fought their way to the sharp edge between two nation states expected to shape the 21st century.

The street unrest resembles an ongoing brawl between police and the young men and women in black. Police have fired about 16,000 rounds of tear gas and 10,000 rubber bullets. Since June, they’ve rounded up people from the ages of 11 to 84, making more than 6,000 arrests. About 500 officers have been wounded in the melee.

Hong Kong’s police officials have said all along that their operations are guided by a desire to maintain public order, rejecting accusations they use excessive force. They issued a plea as recently as Thursday, saying, “If rioters don’t use violence, Hong Kong will be safe and there’s no reason for us to use force.”

After the U.S. Congress was galvanized by the plight of the protesters, it passed the Hong Kong Human Rights and Democracy Act, which President Donald Trump signed last month. The law subjects Hong Kong to review by the U.S. State Department, at least once a year, on whether the city has clung to enough autonomy from Beijing to continue receiving favorable trading terms from America. It also provides for sanctions, including visa bans and asset freezes, against officials responsible for human rights violations in Hong Kong.

The protesters were delighted, carrying American flags and singing “The Star-Spangled Banner” in the streets of Hong Kong. Beijing was furious. China has had sovereignty over Hong Kong since the British handed it over in 1997. The Chinese government quickly banned U.S. military ships from docking in Hong Kong, a traditional port of call in the region.

The protesters, including many as young as Fiona, had changed the course of aircraft carriers and guided-missile destroyers.

Chinese state media describe the unrest as the work of “rioters” and “radicals,” accusing foreign governments of fanning anti-China sentiment in the city. Beijing’s top diplomat has demanded that Washington “stop interfering in China’s internal affairs.”

The stakes for the kids of Hong Kong go well beyond a moment of geopolitical standoff. When Britain passed the city to China, like a pearl slipping from the hand of one merchant to another, there was a written understanding that for 50 years Hong Kong would enjoy a great deal of autonomy. Known as “one country, two systems,” the agreement suspended some of the blow of a global finance center coming under the rule of the Chinese Communist Party. The deal expires in 2047. For Fiona, this means that in her lifetime she will live not in the freewheeling city to which she was born, but, quite possibly, in a place that’s just another dot on the map of China.

Chants at marches revolve around five protester demands, such as universal suffrage, with “Not one less!” the automatic refrain. But conversations soon turn to a larger, more difficult topic at the root of their complaints. China.

During interviews with more than a dozen protesters at Polytechnic and another university besieged at the same time, and continued contact with many of them in the weeks that followed, the subject sprang up repeatedly. It’s never far, they said, the shadow of Beijing over the Hong Kong government’s policies.

“They’re all involved with this shit,” said Lee, who gave only her last name. The 20-year-old nursing student covered her mouth after the obscenity, embarrassed to have said it out loud in the middle of a cafe, and quickly continued. “Of course China is the big boss behind this.”

“If China is going to take over Hong Kong, we will lose our freedoms, we will lose our rights as humans,” she said. Police had taken down her information when she surrendered outside Polytechnic University. She didn’t yet know whether that would lead to an arrest on rioting charges, which could bring up to 10 years of prison.

“In my view, violence is the thing that protects us,” Lee said. “It is a warning to those, like the police, who think they can do anything to us.”

The acceptance of violence isn’t limited to the barricades. Joshua Wong, the global face of the movement’s lobbying efforts, said he understood the need for protesters “to defend themselves with force.”

As Wong spoke during an interview in Hong Kong on Wednesday, the headline on the front page of the South China Morning Post on the table next to his elbow read: “BOMB PLOTTERS ‘INTENDED TO TARGET POLICE AT MASS RALLY'”

If a group of protesters had indeed planned to bomb police, would that have been a step too far?

“I think the fundamental issue,” he said, “is we never can prove which strategy is the most effective or not-effective way to put pressure on Beijing.”

AN AWAKENING

When Fiona first heard about a bill that would allow criminal suspects to be shipped from Hong Kong to mainland China, the initial trigger of the protests, she wasn’t concerned. It was the sort of thing that troublemakers worried about. “The extradition bill seemed good to me,” she said.

Her mother, a housewife from mainland China, is the product of a Communist education system that, as Fiona puts it, doesn’t “allow them to think about politics.” She is still unaware, for example, that there was a massacre around Beijing’s Tiananmen Square in 1989.

Fiona’s father, from Hong Kong, drives a minibus taxi. He has concerns about creeping mainland control, but his urge to “treasure our freedom” leaves him afraid of anything that might provoke Beijing’s wrath: “He keeps saying we should not do this and we should not do that.”

They live together in a sliver of a working-class district in Kowloon, the peninsula that juts above Hong Kong island. It is a place of tiny apartments and people just trying to get by.

It was much better, everyone in her household agreed, to avoid politics.

On weekends, Fiona, who has a cartoon sticker of Cinderella on the back of her iPhone, usually went shopping with girlfriends from high school. They looked for new outfits. They chatted and had tea together.

But when Fiona saw the news that more than 3,000 Hong Kong lawyers dressed in black had marched against the proposed extradition bill on June 6, she wondered what was going on.

She clicked through YouTube on her cell phone. She stopped on a Cantonese-language video uploaded less than a week before by a young, handsome guy – hair cropped close on the sides and in a sort of thick flop on top – sitting on the edge of a bed. The video was speeded up so the presenter spoke in a fast blur, delivering on what he billed as, “Extradition bill 6 minute summary for dummies.”

The idea of the bill, on its face, wasn’t a problem, the young man said – public safety and rules are important. The issue was that the judiciary in the mainland and the judiciary in Hong Kong are two totally different things.

The Chinese Communist Party, he said, might use this new linkage between the court systems to come after ordinary people who were exercising their freedom of speech, something protected in Hong Kong but not Beijing: “You may be extradited to China because of telling a joke.”

Fiona was alarmed.

Just a few days after her YouTube awakening, on June 9, she took the subway with a group of friends from high school over to Hong Kong island. The crowd filled the march’s meeting point, Victoria Park, and soon flooded outside its boundaries. Between the glimmering towers of commerce, they yelled: “Fight for freedom! Stand with Hong Kong!” They yelled: “No China extradition! No evil law!” Fiona was astonished. She couldn’t believe so many people had shown up.

The swell of the crowd, the boom and crash of its noise, was adrenaline and inspiration – “all of us were having the same aim,” Fiona said.

The city’s leader, Beijing-backed Carrie Lam, would have to relent, Fiona thought. Faced with the will of so many citizens – a million came out that day, in a city of about 7.5 million – Lam had no choice but to meet with protesters and address their concerns.

That’s not what happened.

Three days later, the Hong Kong police shot rubber bullets and tear gas into a crowd.

On July 1, protesters wearing yellow construction hats and gauze masks stormed into the city’s Legislative Council building on the 22nd anniversary of the handover from the British. They smashed through glass doors with hammers, poles and road barriers, spray-painting the walls as the chaos churned – “HONG KONG IS NOT CHINA.”

A PREDICTION OF MORE VIOLENCE

On the night of November 16, as Fiona sat on the terrace at Polytechnic, a teenager slouched at his post on a pedestrian bridge on the other side of the school. Reaching across a highway between the back of the university and a subway stop, the bridge could be a point of entry for police, the protesters feared.

The road underneath the bridge led to the Cross-Harbour Tunnel, a main artery linking Hong Kong island and the Kowloon Peninsula. The protesters had blocked that route, hoping to trigger a citywide strike. It was becoming clear that would not happen.

The teenager on the bridge, whose full name includes Pak and who sometimes goes by Paco, had the sleeves of his black Adidas windbreaker rolled up his arms. His glasses jutted out of the eye-opening of his ski mask. The 17-year-old, thick-set and volatile, recently had gotten kicked out of his house after arguing with his parents about the protests. They’re both from mainland China, Pak explained. “They always say, ‘Kill the protesters; the government is right.'”

There was a divide between him and his parents that couldn’t be crossed, he said. As a student in Hong Kong, he received a relatively liberal education at school, complete with the underpinnings of Western philosophical and political thought.

“I was born in Hong Kong. I know what is freedom. I know what is democracy. I know what is freedom of speech,” Pak said, his voice rising with each sentence.

His parents, on the other hand, were educated and raised on the mainland. His shorthand for what that meant: “You know, we should love the Party, we should love Mao Zedong, blah, blah, blah.”

In his downtime, Pak hunched over an empty green Jolly Shandy Lemon bottle and poured lighter fluid inside. He gestured to containers of cooking and peanut oil and said he added them as well because they helped the fire both burn and stick once the glass exploded.

He couldn’t count how many he’d filled in the past two days at Polytechnic. Pak was working a shift as a lookout on the bridge. He guzzled soda and coffee to stay awake, lifting his mask to slurp, revealing a round chin and an adolescent’s light dusting of hair on his upper lip. There was a mattress on the floor around the corner for quick naps. On a board leaning against the side of the walkway in front of him, a message was scrawled in capital letters: EYES OPEN!

Where did he think it was all headed? Pak put the bottle down and said he saw nothing but struggle ahead. “I think the violence of the protests will be increased; it will be upgraded,” he said. “But we have no choice.”

When Pak was 12 years old, he watched news coverage of a massive, peaceful protest in Hong Kong, the 2014 “Umbrella Revolution,” a sit-in that called for universal suffrage. The movement ended with protesters being hit by tear gas and hauled off to jail.

The nonviolent tactics, Pak said, got them nowhere.

Did he worry that the violence was taking place so near to a People’s Liberation Army barracks?

Not at all. That morning, a separate barracks in Hong Kong was in the news when some of its soldiers, in exercise shorts and T-shirts, walked out to the road carrying red buckets and helped clean up debris left by protesters near the city’s Baptist University. The event made both local and international headlines for the rarity of PLA soldiers’ appearance in public. Under the city’s mini-constitution, the Chinese military can be called by the Hong Kong government to help maintain public order, but they “shall not interfere” in local affairs.

“I think they are testing us. If we attack the PLA, the PLA can shoot us and say, ‘OK, we were defending ourselves,'” Pak said. “If we don’t attack the PLA, they will cross the line, again and again.”

But, he said, if the protesters continued ramping up violence against the cops, maybe the PLA would be called in. And that, he said, would hand the protest movement victory.

“Other countries like [the] British and America can protect human rights in Hong Kong by sending troops to protect us,” he said. It was, under any reading of the situation, a far-fetched idea. Hong Kong is by international law the domain of Beijing; the Chinese Communist Party can send in troops to clamp down on civil unrest. There’s not been a hint of any Western power being interested in intervening on the ground.

Pak was right about one thing, though. Police officers later massed on the other side of the bridge, piling out of their vehicles and walking in a long file to the head of the structure. The protesters lit the bridge ablaze. People screamed. Flames leapt. A funnel of black smoke filled the air.

The next night, Pak didn’t reply to notes sent by Telegram, the encrypted messaging app he used. A day later, he still didn’t answer notes asking where he was. The day after that, the same. Pak was gone.

“I HAVE TO BECOME TWO PEOPLE”

The young man lay his hands down on the table. They were bandaged and his fingers curved over in an unnatural crook. He’d not been out of his family’s house much in two weeks. Tommy, 19, shredded his hands on a rope when he squeezed it hard as his body whooshed down off a bridge on the side of Polytechnic University.

They were better now, his fingers. A photograph he sent just after, on November 20, showed a deep pocket of flesh ripped from his left pinkie, close to the bone by the look of it, and skin shredded across both hands. “I didn’t wear gloves,” he explained.

After hitting the ground, he’d rushed to a line of waiting vehicles, driven by “parents” – protester slang for volunteers who show up to whisk them away from dangerous situations.

On the morning of November 18, while still inside Polytechnic, he had sent a note saying his actual parents knew he was there and he couldn’t find a way out.

“Worst case might be the police coming in polyu arresting all the people inside and beat them up,” he said in a note on Telegram, the chat platform. “I’m like holy shit and i gotta be safe and not arrested.”

That evening, he was still there. He didn’t see a way to escape. Tommy went to the “front line” to face off with the police, not far from the ledge where Fiona sat a couple nights before. Tommy carried a makeshift shield, a piece of wood and then part of a plastic road barrier, to protect himself from the blasts of a water cannon. He didn’t make it very far.

Unlike most of the protesters who were around him, Tommy is a student at Polytechnic. He has worked hard to get there.

He’s a kid from a far-flung village up toward the border with the mainland, where both of his parents are from. Everyone in his village opposes the protests, he said, and there are “triads” in the area, members of organized-crime groups that are seen as sometimes doing Beijing’s bidding.

Was he sorry that he’d put himself in danger?

“No regrets,” came the first text message response, at 7:29 p.m., even as police continued to mass outside Polytechnic and fears grew of a violent storming of the campus.

“They are wrong”

“We’re doing the right thing”

“It’s so unforgettable and good”

Hours later, he went down the rope.

Now, meeting to talk after a visit to a clinic for his hands, Tommy said he wasn’t sure what would come next for his city. Or himself. Although the university was still closed, he’d been keeping up with his studies, emailing professors and working on a paper about Hong Kong’s solid-waste treatment policy. Unable to go to the gym because of the hand injury – his athletic frame sheathed in an Adidas jogging suit – Tommy had been feeling restless.

It was obvious the troubles would continue, he said. “Carrie Lam will not accept the demands, the protesters will keep going, people will keep getting arrested,” he said. “The government wants to arrest all the people.”

But the future would still arrive and he had his own dreams: of a wife and a family, and being a man who provided for them. Tommy said he’d been thinking of applying for a government job after graduation. They’re steady and have good benefits.

He would also remain a part of the protest movement.

How could he manage both?

Tommy paused a moment before answering. Then, he said:

“I have to become two people.”

AN ARREST, AND READING UP ON LENIN

On the afternoon of December 1, life was sunshine and breeze at the Hong Kong Cultural Centre. Inside, a youth orchestra was scheduled to play its annual concert, billed as “collaging Chinese music treasures from various soundscapes of China.” Out front, facing the water, a band played cover songs – belting out the lyrics to Bon Jovi’s “You Give Love a Bad Name.” Couples strolled on the boardwalk. The palms swayed. A shop sold ice cream.

And there was Pak, sitting on a bench. He’d been arrested trying to flee Polytechnic in the early morning hours of November 19. After a day spent in a police station, he made bail and moved back in with his parents.

Out in the open, in blue sweatpants and a grey sweatshirt, he was a pudgy teenager with the awkward habit of pushing his eyeglasses up the bridge of his nose as he spoke. He had a couple pimples above his left eye. Also, he was now facing a rioting charge, and had to report back to the police station in a few weeks.

Since his disappearance, the siege at Polytechnic had ended. The protesters simmered down. There was an election for local district councilors, and pro-democracy candidates won nearly 90% of 452 seats.

But two weeks after his arrest, Pak had shown up ready to protest again. A march was slated to start in a couple hours. He’d taken a bus down from one of Hong Kong’s poorest districts, with a black backpack that held his dark clothes and mask.

The lesson of the elections, he said, was that most Hong Kong citizens not only back the protests but “accept the violence level.” Otherwise, he said, they would have rebuked the reform ticket and cast their lot with pro-government candidates.

“I think,” he said, “the violence of the protesters needs to upgrade to setting off bombs.”

He’d been reading about the Russian Revolution and Vladimir Lenin. If he saw irony in studying the architect of the Soviet communist dictatorship while contemplating his own fight against the world’s preeminent Communist Party, he didn’t say so.

“The protesters, I think, will need some weapons, like rifles,” he said.

If it wasn’t possible to buy them, he said, it seemed easy enough to ransack police cars or even stations to steal them. He described how that could be done.

The protests that day veered back to confrontation. A black flag with the words “HONG KONG INDEPENDENCE” flapped above the crowd. The scene to the north, in Kowloon, “descended into chaos as rioters hijacked public order events and resorted to destructive acts like building barricades on roads, setting fires and vandalizing public facilities,” according to a police account. Any hopes that the elections might bring peace seemed fragile. December was off to a turbulent start.

NO CHOICE BUT TO KEEP FIGHTING

In the weeks after walking out of Polytechnic University, slipping past the police, Fiona kept coming back to the heat of the protests. An assembly to support those who protested at Polytechnic. A rally to stop the use of tear gas, which featured little children carrying yellow balloons and a march past the city’s Legislative Council building.

And on a Saturday afternoon, the last day of November, a gathering of students and the elderly at the city’s Chater Garden. The park sits among thick trappings of wealth and power – the private Hong Kong Club, rows of bank buildings and, just down the street, luxury laced across the store windows of Chanel and Cartier. Fiona was with a friend toward the back, on the top of a wall, out of sight of the TV cameras. Her face was hidden behind a mask, as usual. Even between protesters, they usually pass nicknames and nods, with nothing that identifies them in daily life.

Her friend, a boy who goes to the same high school, held forth on revolution and the perils of greater mainland China influence in Hong Kong. Fiona listened, quietly. She nodded her head. She looked out at the crowd. It felt good to see that she was not alone, Fiona said. Though, she said, it was hard to tell where the movement was headed.

It could grind into the sort of underground movement that Tommy hinted at. It could erupt in the boom of Pak’s bloody fantasy.

For Fiona, she knew there was always the danger that police might track down her earlier presence at Polytechnic, ending her precarious dance between homework and street unrest.

But sitting there, as the chants echoed and the sun began to slide down the sky over Hong Kong, Fiona said there was no choice but to keep fighting.

A week later, on Dec. 8, Fiona was at Victoria Park, almost six months to the day since her first protest started there. Hundreds of thousands of people had come for the march. It took Fiona an hour just to get out of the park as the throngs slowly squeezed onto the road outside.

When they saw messages on their cellphones that police had massed down one side street, Fiona and three friends threw on their respirator masks and goggles. As they jogged in that direction, a stranger in the crowd handed them an umbrella; another stranger gave them bottles of water. They joined a group of others, clutching umbrellas and advancing toward police lines, then coming to a halt.

No tear gas or rubber bullets came. The police looked to have taken a step back.

Fiona and her friends dawdled, unsure of what to do. They joined the march, a great mass of people churning through Hong Kong, at one point holding cell phones aloft, an ocean of bobbing lights. They screamed obscenities at police when they saw them, with Fiona showing a middle finger and calling for their families to die. They watched a man throw a hammer at the Bank of China building and heard the crash of breaking glass.

Someone pulled out a can of black spray paint. In the middle of the road, Fiona and her friends took turns writing on the pavement. They left a message: “If we burn, you burn with us!”

(Reporting by Tom Lasseter; editing by Kari Howard. Additional reporting by Felix Tam)

The U.S. will phase out China tariffs, Beijing officials say

BEIJING/WASHINGTON (Reuters) – The United States has agreed to phase out tariffs on Chinese goods, Chinese officials said at a press conference in Beijing Friday evening.

The two countries have achieved major progress in their phase one trade negotiations, Beijing officials said, and agreed on the text of a phase one deal.

The deal will provide more protection for foreign companies in China, and Chinese companies in the United States, Chinese officials said.

U.S. sources said Thursday that Washington has set its terms for a trade deal with China, offering to suspend some tariffs on Chinese goods and cut others in exchange for Beijing’s buying more American farm goods, but Beijing had no comment during the day on Friday in Asia.

The silence had raised questions over whether the two sides can agree a truce in their trade war before a new round of tit-for-tat tariffs takes effect on Sunday.

A source briefed on the status of bilateral negotiations said Thursday the United States would suspend tariffs on $160 billion in Chinese goods expected to go into effect on Sunday and roll back existing tariffs.

(Reporting by Vincent Lee, writing by Heather Timmons; Editing by Nick Zieminski)

Trump says U.S. and China ‘very close’ to trade deal as fresh tit-for-tat tariffs loom

Trump says U.S. and China ‘very close’ to trade deal as fresh tit-for-tat tariffs loom
BEIJING/WASHINGTON (Reuters) – China and the United States are in close communication on trade, officials in Beijing and Washington said, days before tit-for-tat tariffs are due to go into effect.

U.S. President Donald Trump on Thursday said on the United States was “very close” to nailing down a trade deal with China. “Getting VERY close to a BIG DEAL with China,” Trump posted on Twitter. “They want it, and so do we.”

During a regular briefing on Wednesday in Beijing, Gao Feng, spokesman at the Chinese commerce ministry, told reporters “The two sides’ economic and trade teams are maintaining close communication.”

Stock markets jumped on Trump’s tweet, and the S&P 500 <.SPX> shot to a record high, gaining 0.85% on the day.

U.S. negotiators have offered to cut existing tariff rates on $360 billion in Chinese goods by as much as 50%, one person briefed on the negotiations said. They have also offered to suspend tariffs due to go into effect on Dec. 15, the Wall Street Journal reported on Thursday.

The White House had no comment on any offers.

Gao declined to comment on possible retaliatory steps if Washington imposes more tariffs on Chinese goods this weekend.

The United States is due to impose tariffs on almost $160 billion of Chinese imports such as video game consoles, computer monitors and toys on Dec. 15.

Trump is expected to meet top trade advisers on Thursday afternoon to discuss the move, sources told Reuters previously.

Trump’s son-in-law Jared Kushner has recently taken a larger role in U.S.-China trade negotiations, and is among the advisers pushing the 50% tariff rollback, one person briefed on the talks said.

Analysts at Capital Alpha Partners said Thursday they expect Trump to announce a delay in the Dec. 15 tariffs as soon as Thursday for more than 30 days.

A decision to proceed with the Dec. 15 levies could roil financial markets and scuttle U.S.-China talks until after the U.S. presidential election next November. The 17-month-long trade war between the world’s two largest economies has slowed global growth and dampened profits and investment for companies around the world.

The countries agreed in October to conclude a preliminary trade agreement, but Beijing is balking at U.S. demands that it promise to buy a specific amount of agricultural goods. Beijing is also demanding rollbacks of existing tariffs imposed by the United States.

Beijing has said it would retaliate if the United States escalates the trade dispute.

In August, China said it would impose 5% and 10% in additional tariffs on $75 billion of U.S. goods in two batches. Tariffs on the first batch kicked in on Sept. 1, hitting U.S. goods including soybeans, pork, beef, chemicals and crude oil.

The tariffs on the second batch of products are due to be activated on Dec. 15, affecting goods ranging from corn and wheat to small aircraft and rare earth magnets.

China also said that it will reinstitute on Dec. 15 an additional 25% tariff on U.S.-made vehicles and 5% tariffs on auto parts that had been suspended at the beginning of 2019.

(Reporting by Gabriel Crossley and Jeff Mason; Writing by Ryan Woo and Heather Timmons; Editing by Kim Coghill and Jonathan Oatis)

China says hopes it can reach trade agreement with U.S. as soon as possible

China says hopes it can reach trade agreement with U.S. as soon as possible
BEIJING (Reuters) – China said on Monday that it hoped to make a trade deal with the United States as soon as possible, amid intense discussions before fresh U.S. tariffs on Chinese imports are due to kick in at the end of the week.

Beijing hopes it can reach a trade agreement with the United States that satisfies both sides, Assistant Commerce Minister Ren Hongbin told reporters on Monday.

“On the question of China-U.S. trade talks and negotiations, we wish that both sides can, on the foundation of equality and mutual respect, push forward negotiations, and in consideration of each others’ core interests, reach an agreement that satisfies all sides as soon as possible,” Ren said.

China and the United States are negotiating a so-called “phase one” deal aimed at de-escalating their prolonged trade dispute, but it is unclear whether such an agreement can be reached in the near term.

Washington’s next round of tariffs against Chinese goods are scheduled to take effect on Dec. 15.

China has demanded that some of the existing U.S. tariffs imposed on about $375 billion worth of its exports be removed, in addition to cancellation of the Dec. 15 tariffs on some $156 billion of its remaining exports to the United States.

U.S. President Donald Trump has demanded that China commit to specific minimum purchases of U.S. agricultural products, among other concessions on intellectual property rights, currency and access to China’s financial services markets.

White House economic adviser Larry Kudlow said on Friday that the two sides had talked almost daily, but there were currently no plans for face-to-face talks or a signing ceremony between Trump and Chinese President Xi Jinping.

With less than a week to go before the deadline amid “intense” negotiations, Kudlow said Trump would make the final decision on the tariffs, which would hit Chinese-made cellphones, laptop computers, toys and clothing.

“We’ll have to see, but right now we’re moving along,” Trump said last week. “On December 15th, something could happen, but we are not discussing that yet. We are having very good discussions with China, however.”

(Reporting by Gabriel Crossley, writing by Se Young Lee and Ryan Woo; Editing by Himani Sarkar & Kim Coghill)

Fire and petrol bombs after ‘generally peaceful’ Hong Kong march, police say

Fire and petrol bombs after ‘generally peaceful’ Hong Kong march, police say
By Farah Master and Jessie Pang

HONG KONG (Reuters) – Hong Kong protesters lit a fire outside court buildings, threw petrol bombs and spray-painted graffiti on government buildings, following a “generally peaceful” march at the weekend, police said on Monday.

Protesters called for strikes across the city on Monday, but most railway and transport links ran smoothly during the morning rush hour and there were no reports of widespread disruptions.

Vast crowds of black-clad demonstrators had thronged the streets of the Asian financial hub on Sunday, in the largest anti-government rally since local elections last month and a resounding show of continued support for the pro-democracy movement.

While the march appeared to be largely peaceful – in marked contrast to some other mass demonstrations over the last six months, where protesters fought pitched battles with police – authorities said there was some damage after it ended.

“Although the event was generally peaceful, acts of breaching public peace happened afterwards,” police said in a statement on Monday.

“Some rioters spray-painted the exterior walls of the High Court, threw petrol bombs and set fire outside the High Court and the Court of Final Appeal, damaging government properties and seriously challenging the spirit of the rule of law,” police said, adding that shops and banks were vandalized in the Causeway Bay and Wan Chai areas of Hong Kong island.

Reuters reporters at the march on Sunday saw graffiti and protesters setting up barricades, but were not in the vicinity of the other incidents.

The Hong Kong Bar Association condemned what it called “acts of arson and vandalism” and said those responsible must be brought to justice.

Protesters estimated the turnout at 800,000, while police said it was 183,000.

Police said they arrested 42 people over the weekend for rioting, possessing weapons and other charges. Some 6,022 people have now been arrested in relation to the unrest since early June, police said.

‘FED UP’

In an editorial, the official China Daily newspaper called on the Hong Kong government to uphold the rule of law.

“Many residents in Hong Kong are fed up with the violence and disruption that have plagued the city for months,” said the newspaper, often used by Beijing to put out its message.

Hong Kong’s new police commissioner had said he would take a “hard and soft approach” to the demonstrations, where acts of violence would be treated harshly but other issues more flexibly.

The chairman and president of the American Chamber of Commerce (AmCham) in Hong Kong were denied entry over the weekend to the neighboring Chinese territory of Macau, without explanation.

Macau’s security chief, Wong Sio Chak, on Monday said security concerns were the only reason for barring entry into the city, broadcaster RTHK reported.

AmCham Chairman Robert Grieves and President Tara Joseph had been traveling to Macau for an annual ball. The pair were told to sign a statement saying they “voluntarily agreed not to pursue entry to Macau”.

Wong declined to comment specifically on their cases and said it was speculation that their refusal was linked to Beijing’s response to U.S. legislation backing pro-democracy protesters in Hong Kong, RTHK said.

U.S. President Donald Trump last month signed into law the Hong Kong Human Rights and Democracy Act, linking the former British colony’s special treatment under U.S. law to its autonomy from Beijing.

The unrest in the city of about 7.4 million people started in June as demonstrations against a now-withdrawn bill allowing extradition to mainland China. It has since morphed into calls for greater democratic freedoms and sometimes violent protests.

Protesters have set out five demands, including universal suffrage and an investigation into alleged police brutality.

China has repeatedly blamed foreign powers, including the United States, for stirring up the unrest.

(Reporting by Farah Master, Jessie Pang and Twinnie Siu; Writing by David Dolan; Editing by Stephen Coates, Raju Gopalakrishnan and Alex Richardson)