U.S. orders China to shut Houston consulate as spying accusations mount

By Cate Cadell and David Brunnstrom

BEIJING/WASHINGTON (Reuters) – The United States gave China 72 hours to close its consulate in Houston amid accusations of spying, marking a dramatic deterioration in relations between the world’s two biggest economies.

The U.S. State Department said on Wednesday the Chinese mission in Houston was being closed “to protect American intellectual property and Americans’ private information.”

China’s foreign ministry said Washington had abruptly issued the demand on Tuesday and called it an “unprecedented escalation.” The ministry threatened unspecified retaliation.

The Chinese Embassy in Washington had received “bomb and death threats” because of “smears & hatred” fanned by the U.S. government, spokeswoman Hua Chunying wrote in a tweet.

“The U.S. should revoke its erroneous decision,” she said. “China will surely react with firm countermeasures.”

Communist Party rulers in Beijing were considering shutting the U.S. consulate in the central city of Wuhan in retaliation, a source with knowledge of the matter said.

U.S.-based China experts said Beijing could also opt to target more important consulates in Hong Kong, Shanghai or Guangzhou, something that could hurt American businesses.

The Houston move comes in the run-up to the November U.S. presidential election, in which President Donald Trump and his Democratic rival, Joe Biden, have both tried to look tough towards China.

Speaking on a visit to Denmark, U.S. Secretary of State Mike Pompeo repeated accusations about Chinese theft of U.S. and European intellectual property, which he said were costing “hundreds of thousands of jobs.”

While offering no specifics about the Houston consulate, Pompeo referred to a U.S. Justice Department indictment on Tuesday of two Chinese nationals over what it called a decade-long cyber espionage campaign that targeted defense contractors, COVID-19 researchers and hundreds of other victims worldwide.

Pompeo also referred to recent speeches by the head of the FBI and others that highlighted Chinese espionage activities.

“President Trump has said: ‘Enough. We are not going to allow this to continue to happen,'” he told reporters. “That’s the actions that you’re seeing taken by President Trump, we’ll continue to engage in this.”

Republican Senator Marco Rubio, acting chairman of the Senate Intelligence Committee, described the Houston consulate on Twitter as the “central node of the Communist Party’s vast network of spies & influence operations in the United States.”

Trump was due to hold a news conference at 5.30 p.m. (2130 GMT), the White House said.

The New York Times quoted the top U.S. diplomat for East Asia, David Stilwell, as saying that the Houston consulate had been at the “epicenter” of the Chinese army’s efforts to advance its warfare advantages by sending students to U.S. universities.

“We took a practical step to prevent them from doing that,” Stilwell told the Times.

Stephen Biegun, the State Department’s number two diplomat, told the U.S. Senate Foreign Relations Committee the decision was made in response to “longstanding areas of concern.”

He said these included intellectual property theft and commercial espionage, as well as unequal treatment of U.S. diplomats, exporters, investors and media in China and abuse by China’s security services of the welcoming U.S. posture toward Chinese students and researchers.

A Chinese diplomat, speaking to Reuters on condition of anonymity, denied the spying allegations and said the Houston mission acted like other Chinese consulates in the United States – issuing visas, and promoting visits and businesses.

‘RACE TO THE BOTTOM’

U.S.-China ties have worsened sharply this year over issues ranging from the coronavirus and telecoms-gear maker Huawei to China’s territorial claims in the South China Sea and clampdown on Hong Kong.

Jonathan Pollack, an East Asia expert with the Brookings Institution, said he could not think of anything “remotely equivalent” to the move against the Houston consulate since the U.S. and China opened full diplomatic relations in 1979.

“The Trump Administration appears to view this latest action as political ammunition in the presidential campaign… It’s part of the administration’s race to the bottom against China,” he said.

Overnight in Houston, firefighters went to the consulate after smoke was seen. Two U.S. government officials said they had information that documents were being burned there.

Chinese Foreign Ministry spokesman Wang Wenbin said the consulate was operating normally.

But its closure within a short period of time by Washington was “an unprecedented escalation of its recent actions against China,” Wang said.

A source with direct knowledge of the matter said China was considering closing the U.S. consulate in Wuhan, where the State Department withdrew staff and their families early this year due to the coronavirus outbreak that first emerged in the city.

China’s foreign ministry did not immediately respond to a request for comment on whether it would shut the consulate.

Wang said the U.S. government had been harassing Chinese diplomats and consular staff for some time and intimidating Chinese students. He said the United States had interfered with China’s diplomatic missions, including intercepting diplomatic pouches. The State Department did not respond to a request for comment on the Chinese accusations.

(Reporting by Cate Cadell in Beijing and David Brunnstrom in Washington; additional reporting by Nikolaj Skydsgaard in Copenhagen, Patricia Zengerle, Daphne Psaledakis, Mark Hosenball, Steve Holland and Arshad Mohammed in Washington, Michelle Nichols and Echo Wang in New York and Rama Venkat in Bengaluru; Writing by David Brunnstrom and Nick Macfie; Editing by Peter Graff and Rosalba O’Brien)

U.S. aircraft carriers return to South China Sea amid rising tensions

By James Pearson

HANOI (Reuters) – For the second time in two weeks, the United States has deployed two aircraft carriers to the South China Sea, the U.S. Navy said on Friday, as China and the United States accuse each other of stoking tensions in the region.

The USS Nimitz and USS Ronald Reagan carried out operations and military exercises in the contested waterway between July 4 and July 6, and returned to the region on Friday, according to a U.S. Navy statement.

“Nimitz and Reagan Carrier Strike Groups are operating in the South China Sea, wherever international law allows, to reinforce our commitment to a free and open Indo-Pacific, a rules based international order, and to our allies and partners in the region,” Rear Admiral Jim Kirk, commander of the Nimitz, said in the statement.

The presence of the carriers was not in response to political or world events, the statement added, but relations between Washington and Beijing are currently strained over everything from the new coronavirus to trade to Hong Kong.

Heated rhetoric has been on the rise in the region, where Brunei, Malaysia, the Philippines, Taiwan and Vietnam challenge China’s claim to about 90% of the sea.

China held military drills in the sea earlier this month, drawing strong condemnation from both Vietnam and the Philippines, at the same time as the two carriers first crossed the waterway for what the U.S. Navy said were pre-planned exercises.

The U.S. Navy says its carriers have long carried out exercises in the Western Pacific, including in the South China Sea, which extends for some 1,500 km (900 miles). At one point recently, the United States had three carriers in the region.

About $3 trillion of trade passes through the South China Sea each year. The United States accuses China of trying to intimidate Asian neighbors who might want to exploit its extensive oil and gas reserves.

(Reporting by James Pearson; Editing by Simon Cameron-Moore)

Germany urges WHO to hasten review of its handling of pandemic

BRUSSELS/BERLIN (Reuters) – Germany’s health minister urged the World Health Organisation (WHO) to speed up its review of how it handled the pandemic, apparently signalling Europe’s tougher line on the United Nations body.

Berlin, which holds the rotating presidency of the European Union, has so far largely shielded the organization from the most intense criticism by Washington, which wants to leave the WHO because of its alleged excessive closeness to China.

But now Germany seems to be taking a more assertive position.

Spahn told reporters he had discussed the review of the WHO’s management of the crisis with its chief Tedros Adhanom Ghebreyesus twice over the last 20 days.

“In both conversations I encouraged him very clearly to launch this independent commission of experts and to expedite its launch,” Spahn said.

The WHO said last week it was setting up an independent panel to review its handling of the COVID-19 pandemic and the response by governments.

U.S. President Donald Trump has accused the WHO of being too close to China and not doing enough to question Beijing’s actions at the start of the crisis. Tedros has dismissed the suggestions and said his agency kept the world informed.

Tedros has said the panel will provide an interim report to an annual meeting of health ministers in November and present a “substantive report” next May.

Spahn said the review was important now, even if the pandemic is still raging across the world, because “we can already draw conclusions.”

This could lead to quick actions over the body’s governance and to improve “cooperation between the political and the scientific level” of the organisation, Spahn added.

EU governments have said the review should be followed by a reform of the organisation, a possibility already being discussed with the United States and other members of the G7 group of rich countries, officials told Reuters.

One official had said the aim was to ensure WHO’s independence.

(Reporting by Francesco Guarascio @fraguarascio in Brussles, Joseph Nasr and Andeas Rinke in Berlin, Editing by William Maclean)

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

By Jessie Pang and Yanni Chow

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

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

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

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

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

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

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

Full results are expected later in the day.

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

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

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

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

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

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

‘DIFFICULT TO UNDERSTAND’

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

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

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

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

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

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

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

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

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

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

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

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

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

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

China vows retaliation after Trump ends preferential status for Hong Kong

By Jeff Mason and Steve Holland

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

DOUBLE-EDGED SWORD?

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

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

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

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

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

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

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

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

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

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

U.S. rejects China’s claims in South China Sea, adding to tensions

By Humeyra Pamuk, Arshad Mohammed and Yew Lun Tian

WASHINGTON/BEIJING (Reuters) – The United States on Monday rejected China’s claims to offshore resources in most of the South China Sea, drawing criticism from China which said the U.S. position raised tension in the region, highlighting an increasingly testy relationship.

China has offered no coherent legal basis for its ambitions in the South China Sea and for years has been using intimidation against other Southeast Asian coastal states, U.S. Secretary of State Mike Pompeo said in a statement.

“We are making clear: Beijing’s claims to offshore resources across most of the South China Sea are completely unlawful, as is its campaign of bullying to control them,” said Pompeo, a prominent China hawk within the Trump administration.

The United States has long opposed China’s expansive territorial claims on the South China Sea, sending warships regularly through the strategic waterway to demonstrate freedom of navigation there. Monday’s comments reflect a harsher tone.

“The world will not allow Beijing to treat the South China Sea as its maritime empire,” Pompeo said.

The U.S. statement supports a ruling four years ago under the UN Convention on the Law of the Sea (UNCLOS) that invalidated most of China’s claims for maritime rights in the South China Sea.

Chinese foreign ministry spokesman Zhao Lijian condemned the U.S. rejection of China’s claim.

“It intentionally stirs up controversy over maritime sovereignty claims, destroys regional peace and stability and is an irresponsible act,” he said at a regular briefing.

“The U.S. has repeatedly sent large fleets of sophisticated military planes and ships to the South China Sea … The U.S. is the troublemaker and destroyer of regional peace and stability.”

China claims 90% of the potentially energy-rich South China Sea, but Brunei, Malaysia, the Philippines, Taiwan and Vietnam also lay claim to parts of it.

About $3 trillion worth of trade passes through the waterway each year. China has built bases atop atolls in the region but says its intentions are peaceful.

MORE CONFIDENT?

Analysts said it would be important to see if other countries adopted the U.S. stance and what, if anything, Washington might do to reinforce its position and prevent Beijing from creating “facts on the water” to buttress its claims.

“The Southeast Asian claimants, especially Vietnam, will feel more confident in asserting their jurisdictional rights under UNCLOS,” said Ian Storey, senior fellow at the ISEAS-Yusof Ishak Institute in Singapore.

The Philippines strongly supported a rules-based order in the South China Sea and urged China to comply with the four-year-old arbitration ruling, its defense minister, Delfin Lorenzana, said.

Taiwan welcomed the U.S. statement.

“Our country opposes any attempt by a claimant state to use intimidation, coercion, or force to resolve disputes,” Taiwan foreign ministry spokeswoman Joanne Ou told reporters.

The relationship between the United States and China has grown increasingly tense recently over various issues including China’s handling of the novel coronavirus and its tightened grip on Hong Kong.

China routinely outlines the scope of its claims in the South China Sea with reference to a so-called nine-dash line on its maps that encompasses about nine-tenths of the 3.5-million-square-kilometer waters.

“This is basically the first time we have called it illegitimate,” Chris Johnson, an analyst with the Center for Strategic and International Studies, said of Pompeo’s statement.

“It’s fine to put out a statement, but what you going to do about it?”

(Reporting by Humeyra Pamuk, Arshad Mohammed, Matt Spetalnick, Daphne Psaledakis. Additional reporting by Yew Lun Tian in Beijing, Ben Blanchard in Taipei, and Karen Lema in Manila; Editing by Leslie Adler and Lincoln Feast, Robert Birsel)

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

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

By Humeyra Pamuk

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

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

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

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

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

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

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

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

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

Exclusive: U.S. delays diplomats’ return to China amid concerns over coronavirus testing, quarantine

By Humeyra Pamuk

WASHINGTON (Reuters) – The United States has postponed flights for dozens of diplomats who had planned to return to China later this month, after failing to reach agreement with Beijing over issues including COVID-19 testing and quarantine.

Five months after the coronavirus epidemic forced the evacuation of some 1,300 U.S. diplomats and family members from China, Washington and Beijing remain locked in negotiations over conditions for their return, according to more than a dozen internal State Department emails seen by Reuters and people familiar with the matter.

The impasse comes as the pandemic intensifies in many parts of the world, including the United States, with the global tally this week topping 10 million cases and half a million deaths.

It also comes as relations between the world’s two largest economies have sunk to their lowest in decades over issues including China’s handling of the pandemic, bilateral trade and a new security law for Hong Kong.

In a previously unreported June 30 email, Terry Branstad, the U.S. ambassador to China, told embassy staff that two charter flights for diplomats returning to Shanghai and Tianjin planned for July 8 and July 10 respectively had been scrapped and would be rescheduled.

“Protecting the health and safety of our community remains our guiding principle and our top priority in this unprecedented situation,” Branstad wrote. “This means that flight plans will not be confirmed until we have reached an agreement that meets these goals.”

The State Department did not immediately respond to questions about the flight cancellations.

In an emailed response to Reuters questions, the State Department did not specifically discuss negotiations with Beijing, but said: “Mission China and the Department have engaged with Chinese authorities at both the Central Government and the local level to receive assurances of the safe and orderly return of our employees and family.”

A spokesperson for China’s Ministry of Foreign Affairs said there had been close communication regarding the return of U.S. diplomats to China.

“The virus is still spreading overseas and China continues to be under a fair amount of pressure to prevent the import of cases from overseas,” the spokesperson said in fax response to Reuters’ questions.

“The epidemic control measures for the diplomatic corps in China are applied equally across the board. China strives to preserve its hard-won achievement in countering the virus together with the diplomatic corps, and to provide good conditions and a good living environment for everyone to work and live in China.”

‘SIGNIFICANT LOGISTICAL HURDLES’

People familiar with the matter say Washington and Beijing have not been able to overcome the “significant logistical hurdles”, including the lack of an agreement on Chinese testing and quarantine procedures for diplomats and families that were cited in a May 28 State Department email to China staff.

Diplomats say agreeing to be tested contravenes the 1961 Vienna Convention on Diplomatic Relations. While an internal State Department guideline dated June 17 says it has approved a plan that includes testing under Chinese procedures upon arrival, sources familiar with the matter say the agency does not want to waive the diplomatic inviolability of staff and is still negotiating with Chinese authorities on the issue.

Several diplomats said they were concerned about the potential for Chinese authorities to take DNA samples and the possibility of parents being separated from their children if some family members tested positive.

“This essentially puts us at the mercy of the Chinese government, with whom tensions have run extremely high,” a U.S. diplomat, speaking on the condition of anonymity, told Reuters while preparing to return to work in China.

“We are in a situation where officers are being forced to decide between being separated from their families or bringing them into a potentially dangerous situation,” the diplomat said.

The experiences of diplomats taking the first and so far only flight back to China, to Tianjin in late May, had concerned some others planning to return, several diplomatic sources said.

Around 60 passengers of ‘Flight One’ were met by more than 150 Chinese officials in HAZMAT suits who directed them for COVID-19 testing, according to a newsletter for China Mission staff, a copy of which was seen by Reuters.

Swabs were taken by U.S. medical officials, with the tests conducted by Chinese labs.

Diplomats were questioned about their activities prior to the 18-hour journey in a cargo plane from Washington.

“Have you been to any parties? Have you eaten in a restaurant? Do you feel good?” Chinese officials asked before the American diplomats were ushered into a VIP lounge to wait some 10 hours for their test results before they could leave.

Uncertainty about returning has been magnified by regulations that cap the amount of time the State Department can cover the expenses of diplomats evacuated from their posts.

“A lot of people don’t feel like going back, but after 180 days, you’re out of options,” said another foreign service officer familiar with the matter. “Basically your choice is to curtail your job and choose a different assignment.”

A State Department spokeswoman acknowledged that 180 days was the limit for evacuees to receive allowances, and said the agency continued to “assess options on how best to protect and support employees and family members in China and across the globe.”

(Reporting by Humeyra Pamuk; Additional reporting by David Brunnstrom in Washington and Tony Munroe in Beijing; Editing by Lincoln Feast and Alex Richardson)

Hong Kong police arrest more than 300 in first protest under new security law

By Scott Murdoch and Yanni Chow

HONG KONG (Reuters) – Hong Kong police fired water cannon and tear gas and arrested more than 300 people on Wednesday as protesters took to the streets in defiance of sweeping security legislation introduced by China that critics say is aimed at snuffing out dissent.

Beijing unveiled the details of the much-anticipated law late on Tuesday after weeks of uncertainty, pushing China’s freest city and one of the world’s most glittering financial hubs on to a more authoritarian path.

As thousands of protesters gathered downtown for an annual rally marking the anniversary of the former British colony’s handover to China in 1997, riot police used pepper spray and fired pellets as they made arrests after crowds spilled into the streets chanting “resist till the end” and “Hong Kong independence”.

“I’m scared of going to jail but for justice I have to come out today, I have to stand up,” said one 35-year-old man who gave his name as Seth.

Police said they had made more than 300 arrests for illegal assembly and other offences, with nine involving suspected violations of the new law.

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

China’s parliament adopted the law in response to protests last year triggered by fears that Beijing was stifling the city’s freedoms, guaranteed by a “one country, two systems” formula agreed when it returned to Chinese rule.

Police cited the law for in confronting protesters.

“You are displaying flags or banners/chanting slogans/or conducting yourselves with an intent such as secession or subversion, which may constitute offences under the … national security law,” police said in a message displayed on a purple banner.

Authorities in Beijing and Hong Kong have repeatedly said the legislation is aimed at a few “troublemakers” and will not affect rights and freedoms, nor investor interests.

But critics fear it is aimed ending the pro-democracy opposition and will crush the freedoms that are seen as key to Hong Kong’s success as a financial center.

The United States and its Asian and Western allies have criticized the legislation. Britain said it would stand by its word and offer all those in Hong Kong with British National Overseas status a “bespoke” immigration route. Britain and Canada also updated their travel advice for Hong Kong, saying there was an increased risk of detention.

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

Police fired water cannons to try to disperse the protesters. A game of cat-and-mouse reminiscent of last year’s often violent demonstrations followed, with protesters blocking roads before running away from riot police charging with batons, only to re-emerge elsewhere.

Police posted pictures on Twitter of an officer with a bleeding arm saying he was stabbed by “rioters holding sharp objects.” The suspects fled while bystanders offered no help, police said.

On July 1 last year, hundreds of protesters stormed and vandalized the city’s legislature to protest against a bill that would have allowed extraditions to mainland China.

Those protests evolved into anti-China demonstrations and calls for democracy, paralyzing parts of the city and paving the way for Beijing’s new law.

‘BIRTHDAY GIFT’

In Beijing, Zhang Xiaoming, executive deputy director of Beijing’s Hong Kong and Macau Affairs Office, told reporters suspects arrested by a new Beijing-run security office could be tried on the mainland.

He said the new office abided by Chinese law and that Hong Kong’s legal system could not be expected to implement the laws of the mainland. Article 55 of the law states that Beijing’s security office in Hong Kong could exercise jurisdiction over “complex” or “serious” cases.

“The law is a birthday gift to (Hong Kong) and will show its precious value in the future,” Zhang said, adding the law would not be applied retroactively.

Speaking at a flag-raising ceremony to mark the handover, the city’s Beijing-backed leader, Carrie Lam, said the law was the most important development since 1997.

“It is also an inevitable and prompt decision to restore stability,” Lam said at the harbor-front venue where the last colonial governor, Chris Patten, a staunch critic of the security law, tearfully handed back Hong Kong to China.

Some pro-Beijing officials and political commentators say the law is aimed at sealing Hong Kong’s “second return” to the motherland after the first failed to bring residents to heel.

Luo Huining, the head of Beijing’s top representative office in Hong Kong, said at the ceremony the law was a “common aspiration” of Hong Kong citizens.

Some pro-democracy activists gave up membership of their groups just before the law came into force into force at 11 p.m. (1500 GMT) on Tuesday, though they called for the campaign to carry on from abroad.

“I saw this morning there are celebrations for Hong Kong’s handover, but to me it is a funeral, a funeral for ‘one country two systems’,” said pro-democracy lawmaker Kwok Ka-ki.

(Reporting by Yanni Chow, Twinnie Siu, Pak Yiu, Scott Murdoch, Joyce Zhou, Clare Jim, Jessie Pang, Tyrone Siu and James Pomfret in Hong Kong, Yew Lun Tian in Beijing, William James and Guy Faulconbridge in London and Denny Thomas in Toronto; Writing by Anne Marie Roantree and Marius Zaharia; Editing by Michael Perry, Robert Birsel and Nick Macfie)

China passes national security law in turning point for Hong Kong

By Clare Jim and Yew Lun Tian

HONG KONG/BEIJING (Reuters) – China’s parliament passed national security legislation for Hong Kong on Tuesday, setting the stage for the most radical changes to the former British colony’s way of life since it returned to Chinese rule 23 years ago.

Details of the law – which comes in response to last year’s often-violent pro-democracy protests in the city and aims to tackle subversion, terrorism, separatism and collusion with foreign forces – were yet to be released.

Hong Kong leader Carrie Lam nevertheless welcomed the law’s passage and said it would come into effect later on Tuesday, giving the city’s 7.5 million people little time to digest what is expected to be highly complex legislation.

Amid fears the law will crush the global financial hub’s freedoms, and reports that the heaviest penalty under it would be life imprisonment, pro-democracy activist Joshua Wong’s Demosisto group said it would dissolve.

“It marks the end of Hong Kong that the world knew before,” Wong said on Twitter.

The legislation pushes Beijing further along a collision course with the United States, Britain and other Western governments, which have said it erodes the high degree of autonomy the city was granted at its July 1, 1997, handover.

The United States, already in dispute with China over trade, the South China Sea and the coronavirus, began eliminating Hong Kong’s special status under U.S. law on Monday, halting defense exports and restricting technology access.

China said it would retaliate.

Lam, in a video message to the United Nations Human Rights Council in Geneva, urged the international community to “respect our country’s right to safeguard national security”.

She said the law would not undermine the city’s autonomy or its independent judiciary.

Authorities in Beijing and Hong Kong have repeatedly said the legislation is aimed at a few “troublemakers” and will not affect rights and freedoms, nor investor interests.

The editor-in-chief of the Global Times, a tabloid published by the People’s Daily, the official newspaper of China’s ruling Communist Party, said on Twitter the heaviest penalty under the law was life imprisonment.

As the law was passed in Beijing, the Chinese People’s Liberation Army garrison in Hong Kong held a drill which included exercises to stop suspicious vessels and arrest fugitives, according to the Weibo social media account of state-run CCTV’s military channel.

‘OVERPOWERING’

The legislation may get an early test with activists and pro-democracy politicians saying they would defy a police ban, amid coronavirus restrictions, on a rally on the anniversary of the July 1 handover.

At last year’s demonstration, which came amid a series of pro-democracy protests, a crowd stormed and vandalized the city’s legislature.

“We will never accept the passing of the law, even though it is so overpowering,” said Democratic Party chairman Wu Chi-wai.

It is unclear if attending the unauthorized rally would constitute a national security crime.

A majority in Hong Kong opposes the legislation, a poll conducted for Reuters this month showed, but support for the protests has fallen to only a slim majority.

Police dispersed a handful of activists protesting against the law at a shopping mall.

Dozens of supporters of Beijing popped champagne corks and waved Chinese flags in celebration in front of government headquarters.

“I’m very happy,” said one elderly man, surnamed Lee.

“This will leave anti-China spies and people who brought chaos to Hong Kong with nowhere to go.”

This month, China’s official Xinhua news agency unveiled some of the law’s provisions, including that it would supersede existing Hong Kong legislation and that interpretation powers belong to China’s parliament top committee.

Beijing is expected to set up a national security office in Hong Kong for the first time and could also exercise jurisdiction on certain cases.

Judges for security cases are expected to be appointed by the city’s chief executive. Senior judges now allocate rosters up through Hong Kong’s independent judicial system.

It is not known which specific activities are to be made illegal, how precisely they are defined or what punishment they carry.

Britain, the European Union, Japan, Taiwan and others have also criticized the legislation.

China has hit back at the outcry, denouncing “interference” in its internal affairs.

(Additional reporting by Yanni Chow, Carol Mang, Joyce Zhou, Tyrone Siu, Jessie Pang and James Pomfret in Hong Kong; Writing by Marius Zaharia; Editing by Michael Perry, Robert Birsel)