Special Report: Rudderless rebellion – Inside the Hong Kong protesters’ anarchic campaign against China

FILE PHOTO: Police fire tear gas at anti-extradition bill protesters during clashes in Sham Shui Po in Hong Kong, China, August 14, 2019. REUTERS/Thomas Peter/File Photo

By James Pomfret, Greg Torode, Clare Jim and Anne Marie Roantree

HONG KONG (Reuters) – Ah Lung spends his days working as a clerk for a Hong Kong shipping firm. At night, he dons a mask, black helmet, and body armor, and heads out into the streets to face off against the city’s riot police.

The 25-year-old activist has been a constant presence at the often violent protests that have rocked Hong Kong this summer, rallying comrades, building barricades and rushing from district to district in a frantic game of cat-and-mouse with police.

Ah Lung, who would only identify himself by his nickname, which means “dragon” in Cantonese, is representative of a growing number of discontented young Hong Kongers who are fueling a protest movement that, unlike its predecessors, is taking aim directly at Beijing.

It is a movement without clearly discernible leaders or structure, making it difficult for the authorities to effectively target — and increasingly hard for the protesters themselves to manage.

While it has the support of established pro-democracy groups, the amorphous movement is fueled by activists like Ah Lung – young Hong Kongers who operate independently or in small groups and adapt their tactics on the run.

“We’re not so organized,” Ah Lung said. “Every day changes, and we see what the police and the government do, then we take action.”

“My dream is to revive Hong Kong, to bring a revolution in our time,” Ah Lung said. “This is the meaning of my life now.”

Through interviews with dozens of protesters like Ah Lung and reporting from dozens of protests, Reuters has pieced together a picture of how this movement functions and the mindset driving it.

‘FREE HONG KONG’

The protests, which started as a peaceful rebuke of the Hong Kong government back in April, have evolved into a direct challenge to Communist Party rule over this former British colony.

With slogans such as “Free Hong Kong” and “Hong Kong is not China,” Ah Lung and his fellow protesters have made clear they reject a future in which Hong Kong is inexorably absorbed into the mainland giant, eventually becoming just another Chinese city.

Protesters are provocatively calling the demonstrations an “era of revolution,” a formulation that has infuriated a ruling Chinese Communist Party determined to crush any challenge to its monopoly on power.

Scenes once unthinkable in Hong Kong are now commonplace: The city’s international airport being shut down this week after a prolonged occupation by protesters; a Chinese official publicly suggesting that aspects of some of the protests were terrorism; the legislature stormed and ransacked by protesters; police officers repeatedly baton-charging crowds of protesters and unleashing torrents of tear gas in famed shopping districts.

On Tuesday, protesters who managed to shut down the airport also attacked a Chinese man for being a suspected undercover agent. He was identified as a reporter for the Global Times, a tabloid controlled by Beijing, highlighting how activists are making the Chinese government the target of their protests.

It also brought another issue into focus: the risks of waging a leaderless rebellion. Demonstrators later apologized for the disruptions at the airport, apparently concerned that their chaotic protests might alienate broader sections of the Hong Kong public who had been supporting them.

“The movement has a large degree of self-restraint and solidarity, but of course that’s very conditional,” said Samson Yuen, a political scientist at Lingnan University in Hong Kong who has conducted surveys of protesters to understand their motives and support base.

“If certain actions spin out of control, if say someone dies from it, then that might be a game-changer.”

ONE-COUNTRY, TWO-SYSTEMS

Under the “one-country, two-systems” formula, China promised Hong Kong it would enjoy autonomy for 50 years after its handover from Britain in 1997.

Unlike those who negotiated the deal, for young protesters born after the handover that deadline will fall in the middle of their lives. And, as Beijing tightens its grip on Hong Kong, the future they see careening toward them is that of an authoritarian mainland China with curbs on the freedoms and rights they now enjoy.

“In 2047, if it returns to China, real Hong Kongers will leave and emigrate from Hong Kong,” said Ah Lung, speaking in a small apartment in the Sham Shui Po neighborhood as he prepared for a night of protests that quickly descended into violence.

“By then, it won’t be Hong Kong anymore, but Xiang Gang,” he said, referring to the name commonly used on the mainland for Hong Kong.

Hong Kong Chief Executive Carrie Lam has said that protesters’ calls for a revolution to “liberate” Hong Kong are illegal acts that challenge the authority of the central government in Beijing.

In response to questions from Reuters about the protests, a spokesman for Lam referred to her promise to address income disparities in the city once the violence subsides.

The Hong Kong Liaison Office, Beijing’s main representative arm in the city, and the Chinese Foreign Ministry did not respond to questions from Reuters.

The Hong Kong police did not respond to questions from Reuters. During the protests, police spokesmen have repeatedly defended the use of force and have pointed to escalating violence by protesters that has included throwing bricks and fire bombs.

LEADERLESS MOVEMENT

The protesters’ mantra – “Be water!” – epitomizes the movement’s tactics. A phrase borrowed from the Hong Kong movie star Bruce Lee, who used it to describe his kung fu philosophy, it is a call for flexibility and creativity, moving forward to press an advantage and pulling back when a strategic retreat is needed.

Its latest manifestation is the series of wildcat protests that have spread across the city in recent weeks. When police turn up in numbers at one protest, the activists often engage them, tying down officers before melting away and reappearing to stage a fresh protest in another area.

Pro-democracy protests that paralyzed much of downtown Hong Kong in 2014 involved blocking several key roads for more than two months. The more fluid tactics now being deployed by protesters, often masked to avoid surveillance and dressed in black, present a greater challenge for the police. Frontline officers speak of exhaustion, saying they never know where the activists will strike next.

Protesters say their movement is leaderless. In some ways, that’s a reaction to the 2014 demonstrations in which many of the leaders were arrested and given prison terms.

Unlike those protests, when leaders like Joshua Wong became globally recognized names, frontline activists like Ah Lung are deliberately staying under the radar, using pseudonyms and appearing at protests with their faces obscured by masks and sunglasses.

The leaderless nature of the protest movement is made possible, to a large extent, by social media.

Protesters take their cues from more than 100 groups on the instant messaging app Telegram, dozens of Instagram sites and online forums like LIHKG. The groups are used to post everything from news on upcoming protests to tips on dousing tear gas canisters fired by the police to the identities of suspected undercover police and the access codes to buildings in Hong Kong where protesters can hide.

It’s not an issue of having “no leader, it simply means that everyone is a leader,” said one 22-year-old Hong Kong student based in Britain who helps run “antielabhk,” an Instagram page that includes details about protests that has amassed more than 50,000 followers. The student asked not to be named.

Ma, a 28-year-old university student who would only give her surname, said at a recent protest in the volatile Mongkok district that she had come after seeing recruitment appeals in a Telegram group. “We were only notified or briefed today – like an hour ago,” said Ma, as she handed out water to protesters.

THE FRONT LINES

A feature of the protests in recent weeks has been the sight of ordinary activists like Ah Lung, the shipping clerk, rallying other protesters.

In Sham Shui Po on Sunday, Ah Lung joined other masked “frontliners” as the protest began. Some used wrenches to loosen bolts on roadside fences, which were then shaken loose, bound with nylon ties, and formed into makeshift barricades against the police.

Ah Lung, brandishing a Star Wars light saber he had bought at a toy shop, called out instructions on where to position the barricades. As they worked, other masked protesters used hand-held telescopes to track police movements.

The improvised, bottom-up nature of the protest movement is further evident in the scores of medics, some of them medical staff from local hospitals, who say they have turned up unprompted at protest sites to treat the wounded and administer saline solution to tear gas victims.

Kay, a 28-year-old medic who works in information technology and would only give her first name, said she prepared an emergency kit, including iodine, bandages, tourniquets and saline solution before every protest.

“I was hit by a tear gas canister one time and then when I retreated to a safe spot, some people helped me. I felt touched, and I wanted to help some people back.”

While the protest movement may not have clearly identifiable leaders, it does have the backing of prominent pro-democracy activists and groups who have organized some of the demonstrations. In the past, they have led smaller, more orderly demonstrations that were not aimed so pointedly at the leadership in Beijing.

Reuters reporting shows there is a high degree of coordination among a small circle of these activists, many of whom participated in the 2014 protests that were sparked by Beijing’s refusal to grant Hong Kong universal suffrage.

For instance, members of Demosisto, a party that advocates for greater democracy in Hong Kong, have been behind a number of demonstrations, some of which ended in violent clashes with riot police, according to the group’s members.

Last month, Tobias Leung, a member of the party’s standing committee, applied for police permission to stage a rally in the suburban district of Sha Tin. Leung’s link to the protest wasn’t immediately clear because he applied under the name of a local community group, according to Wong, the leader of Demosisto.

Wong and other prominent activists have been present at various demonstrations, sometimes close to the front lines. But they have struggled to impose leadership on the streets, with the protesters debating amongst themselves and consulting their phone groups on what action to take.

Along with other prominent democrats in the city, Wong has been seen at protests by Reuters being shouted down by activists who say they don’t want the movement hijacked by any single leader or group.

“I’m quite happy people are saying we should not rely on any specific political leader to lead this movement,” Wong told Reuters.

Jailed independence activist Edward Leung, who is revered by many of the protesters, is currently serving a six-year sentence for rioting stemming from a protest in 2016.

Francis Lee, a professor at the Chinese University of Hong Kong, who has written a book on Hong Kong social movements, describes the protests as an “open source” movement. Protesters often aggregate the best ideas in online groups and vote on courses of action, he said.

China has accused foreign countries of being behind the protests. Both Western and Asian diplomats in the city monitor the protests closely and some have been seen at events. Diplomats say this is part of their routine work.

FRUSTRATIONS BOIL OVER

The protests erupted in late April over a bill proposed by Lam that would have allowed the extradition of defendants from Hong Kong to mainland China. Unlike the demand for universal suffrage, which fueled the 2014 protests, the extradition bill was seen as a specific, tangible threat by many Hong Kongers, galvanizing hundreds of thousands of people.

Facing huge protests, Lam announced on June 15 that she was freezing the bill.

That wasn’t enough for many Hong Kong residents, many of whom flooded onto the streets in one of the largest protest marches ever seen in the city, largely organized by a coalition of civil society groups. The march brought together a diverse cross-section of Hong Kong society, including members of the city’s politically conservative middle class.

A major turning point in the protests was an assault on July 21 on Beijing’s Central Government Liaison Office – the most prominent symbol of China’s authority in Hong Kong.

Black-clad activists arrived at dusk at the glass-steel skyscraper that bears the red state seal of China above its entrance. As the crowd quickly swelled to thousands, some protesters hurled eggs at the building. Others used spray paint to scrawl the words “Revolution of Our Time” on the walls.

Some tried to neutralize surveillance cameras by targeting them with laser pointers. To roars of approval, protesters then lobbed black paint at the state seal of China.

“Carrie Lam has refused to listen to our concerns about Communist Party interference,” said one 27-year-old protester who would only give his name as Paul, as he attached vials of anti-tear gas fluid onto his military style backpack. “Now we have to send our message to the communists directly.”

The Liaison Office has since become the target of repeated protests.

Nick Tsang, a protester clad in a black balaclava and black clothes, was in a crowd that began congregating in a Hong Kong park on the afternoon of July 28.

Tsang checked out a Telegram group to see where other protesters were going. One group of protesters splintered off and headed to the city’s police headquarters, while another group branched out in the direction of the Causeway Bay shopping district. Later on, some backtracked toward the Liaison Office. Tsang followed them.

This time, the building was fortified with water-filled plastic barriers, and several battalions of riot police and other elite units. Liaison Office staff, meanwhile, had replaced the sullied state seal with a new one and encased it in a plexiglass box.

Following several hours of heated clashes in the streets around the Liaison Office, a rearguard of protesters, including Tsang, found themselves surrounded by police. With tear gas swirling, they made a run for the Hong Kong subway system and escaped onto a train.

“We can’t retreat or the authoritarianism will worsen,” said Tsang, referring to the Chinese government.

“This is not about me. This is for Hong Kong, my home city.”

(Multimedia package on Hong Kong protests : https://www.reuters.com/investigates/special-report/hongkong-protests-protesters/)

(Reporting by James Pomfret, Greg Torode, Clare Jim and Anne Marie Roantree. Additional reporting by Jessie Pang, David Lague, Felix Tam, Donny Kwok, Marius Zaharia, Vimvam Tong and Noah Sin; Editing by Philip McClellan and Peter Hirschberg)

China to counter latest U.S. tariffs as Trump vows deal on U.S. terms

Containers are seen at Yantian port in Shenzhen, Guangdong province, China July 4, 2019. Picture taken July 4, 2019. REUTERS/Stringer

BEIJING/WASHINGTON (Reuters) – China on Thursday vowed to counter the latest U.S. tariffs on $300 billion of Chinese goods but called on the United States to meet it halfway on a potential trade deal, as U.S. President Donald Trump said any pact would have to be on America’s terms.

The Chinese finance ministry said in a statement that Washington’s tariffs, set to start next month, violated a consensus reached between Trump and Chinese President Xi Jinping at a June summit in Japan to resolve their disputes via negotiation.

In a separate statement, China’s foreign ministry spokeswoman, Hua Chunying, said, “We hope the U.S. will meet China halfway, and implement the consensus of the two heads of the two countries in Osaka.”

China hopes to find mutually acceptable solutions through dialogue and consultation on the basis of equality and mutual respect, she added.

Trump, who is seeking re-election in 2020 and had made the economy and his tough stance on China a key part of his 2016 campaign for the White House, on Thursday said any agreement must meet U.S. demands.

“China, frankly, would love to make a deal, and it’s got to be a deal on proper terms. It’s got to be a deal, frankly, on our terms. Otherwise, what’s the purpose?” Trump said in an interview on New Hampshire radio station WGIR.

The trade picture is further complicated by continuing unrest in Hong Kong, which Trump on Wednesday tied to any possible agreement, saying Xi must first work out the situation in the territory with protesters.

On Thursday, he used Twitter to call on the Chinese president to personally meet with protesters to spur “a happy and enlightened ending to the Hong Kong problem.”

Trump and Xi in June had agreed to restart trade talks after negotiations stalled earlier this year. But earlier this month, the Trump administration said it would slap duties beginning Sept. 1 on $300 billion of Chinese goods, which would effectively cover all of China’s exports to the United States.

Trump backed off part of the plan this week, delaying duties on certain items such as cellphones, laptops and other consumer goods, in the hopes of blunting their impact on U.S. holiday sales. Tariffs will still apply to those products starting in mid-December.

The move has roiled global markets and further unnerved investors as the trade dispute between the world’s two largest economies stretches into its second year with no end in sight.

China’s threat to impose countermeasures further sent global stocks sprawling on Thursday with oil also deepening its slide over recession fears, although U.S. stocks opened higher on Thursday amid strong retail sales data.

Trump, in his radio interview on Thursday, dismissed investors’ worries.

“We had a couple of bad days but … we’re going to have some very good days because we had to take on China,” he told WGIR.

(Reporting by Beijing Monitoring Desk; additional reporting by Susan Heavey and Makini Brice in Washington; Editing by Clarence Fernandez and Jonathan Oatis)

As Hong Kong braces for protests, Chinese paramilitary holds drills across border

Chinese soldiers walk in formation on the grounds of the Shenzhen Bay Sports Center in Shenzhen across the bay from Hong Kong, China August 15, 2019. REUTERS/Thomas Peter

By Farah Master

HONG KONG (Reuters) – Hong Kong braced on Thursday for more mass demonstrations through the weekend, as China again warned against foreign interference in the city’s escalating crisis and as mainland paramilitary forces conducted exercises just across the border.

Western governments, including the United States, have stepped up calls for restraint, following ugly and chaotic scenes at the city’s airport this week, which forced the cancellation of nearly 1,000 flights and saw protesters set upon two men they suspected of being government sympathizers.

Military vehicles are parked on the grounds of the Shenzhen Bay Sports Center in Shenzhen, China August 15, 2019. REUTERS/Thomas Peter

Military vehicles are parked on the grounds of the Shenzhen Bay Sports Center in Shenzhen, China August 15, 2019. REUTERS/Thomas Peter

The airport, one of the world’s busiest, was returning to normal but under tight security after thousands of protesters had jammed its halls on Monday and Tuesday nights, part of a protest movement Beijing has likened to terrorism.

Across a bridge linking Hong Kong’s rural hinterland with the booming mainland city of Shenzhen, hundreds of members of the paramilitary People’s Armed Police conducted exercises at a sports complex in what was widely seen as a warning to protesters in Hong Kong.

The police could be seen carrying out crowd-control exercises, and more than 100 dark-painted paramilitary vehicles filled the stadium’s parking lots.

Chinese state media had first reported on the exercises on Monday, prompting U.S. concerns they could be used to break up the protests. However, several western and Asian diplomats in Hong Kong told Reuters Beijing has little appetite for putting the PAP or the People’s Liberation Army onto Hong Kong’s streets.

Ten weeks of increasingly violent confrontations between police and protesters have plunged Hong Kong into its worst crisis since it reverted from British to Chinese rule in 1997, and police tactics have been toughening.

The protests represent the biggest populist challenge for Chinese President Xi Jinping since he came to power in 2012 and show no immediate signs of abating.

Late on Wednesday night, police and protesters faced off again on the streets of the financial hub, with riot officers quickly firing tear gas.

Seventeen people were arrested on Wednesday, bringing the total detained since June to 748, police told a news conference, adding that police stations have been surrounded and attacked 76 times during the crisis.

TRUMP AND TRADE DEAL

U.S. President Donald Trump tied a U.S.-China trade deal to Beijing resolving the unrest “humanely”, and suggested he was willing to meet Xi to discuss the crisis.

“I have ZERO doubt that if President Xi (Jinping) wants to quickly and humanely solve the Hong Kong problem, he can do it. Personal meeting?” Trump said on Twitter.

The U.S. State Department said it was deeply concerned over reports that Chinese police forces were gathering near the border with Hong Kong and urged the city’s government to respect freedom of speech.

It also issued a travel advisory urging U.S. citizens to exercise caution in Hong Kong. China has frequently warned against what it regards as outside interference in an internal issue.

Other foreign governments urged calm. France called on city officials to renew talks with activists, while Canada said China should handle the protests with tact.

The Civil Human Rights Front, which organized million-strong marches in June, has scheduled another protest for Sunday.

The protesters have five demands, including the complete withdrawal of a now-suspended extradition bill that would have allowed criminal suspects to be sent for trial in mainland Chinese courts.

Opposition to the extradition bill has developed into wider concerns about the erosion of freedoms guaranteed under the “one country, two systems” formula put in place after Hong Kong’s return to Chinese rule in 1997.

RECESSION FEARS

It was not yet clear whether the airport clashes had eroded the broad support the movement has so far attracted in Hong Kong, despite adding to the city’s faltering economy.

The protests could push Hong Kong into a recession, research firm Capital Economics said, and risked “an even worse outcome if a further escalation triggers capital flight”.

Hong Kong’s property market, one of the world’s most expensive, would be hit hard in that scenario, it added.

Financial Secretary Paul Chan unveiled a series of measures worth HK$19.1 billion ($2.44 billion) on Thursday to tackle economic headwinds, but he said it was not related to political pressure from the protests.

Business and citizens’ groups have been posting full-page newspaper advertisements that denounce the violence and back Hong Kong’s government.

The head of Macau casino operator Galaxy Entertainment, Lui Che-woo, urged talks to restore harmony. The protests have affected the neighboring Chinese territory of Macau, with some visitors avoiding the world’s biggest gambling hub amid transport disruptions and safety concerns.

(Additional reporting by Donny Kwok, Noah Sin, Kevin Liu and Twinnie Siu in HONG KONG, David Brunnstrom and Jonathan Landay in WASHINGTON, Mathieu Rosemain in PARIS, and David Ljunggren in OTTAWA; Writing by Farah Master; Editing by Paul Tait and Darren Schuettler)

Police, protesters clash at Hong Kong airport after flights halted for second day

Medics attempt to remove an injured man who anti-government protesters said was a Chinese policeman during a mass demonstration at the Hong Kong international airport, in Hong Kong, China, August 13, 2019. REUTERS/Tyrone Siu

By Tom Westbrook and Clare Jim

HONG KONG (Reuters) – Police and protesters clashed at Hong Kong’s international airport on Tuesday after flights were disrupted for a second day as the political crisis in the former British colony deepened.

In Washington, U.S. President Donald Trump said the Chinese government was moving troops to the border with Hong Kong and he urged calm.

Trump said the situation in Hong Kong was tricky but he hoped it would work out for everybody, including China, and “for liberty” without anyone getting hurt or killed.

Hong Kong Chief Executive Carrie Lam warned that Hong Kong risked being “smashed to pieces”.

Demonstrators who have been protesting for the past nine weeks against Beijing’s growing influence in the special administrative region targeted the international airport for a second day on Tuesday.

Thousands of black-clad protesters jammed the terminal chanting, singing and waving banners.

Scuffles broke out in the evening after an injured man was held by a group of protesters. Some claimed he was an undercover mainland Chinese agent and initially refused to let him leave.

Medics, however, bundled him onto a stretcher and forced their way through jeering throngs to an ambulance.

Several police vehicles were blocked by protesters and riot police moved in amid chaotic scenes, using pepper spray to keep people back. A policeman pulled out a gun at one point.

Protesters also barricaded some passageways in the airport with luggage trolleys, metal barriers and other objects. Others clambered onto check-in counters as the protesters appeared to control part of the airport for a short while. At least two protesters were taken away by police.

Another mainland Chinese man was held and tied down by protesters at the airport after they thought he was posing as a reporter. The editor-in-chief of the state-run Global Times newspaper, Hu Xijin, tweeted that the man was a journalist with the paper. He was later taken away by ambulance.

The situation calmed down after a few hours without the violence worsening, and the crowds thinned out. Hong Kong media reported that an injunction had been issued by a court to clear the airport of protesters.

The action followed an unprecedented shutdown of the airport on Monday. Hong Kong’s Airport Authority said operations had been “seriously disrupted” on Tuesday and departing passengers had been unable to reach immigration counters.

The weeks of protests began as opposition to a now-suspended bill that would have allowed suspects to be extradited to mainland China and have swelled into wider calls for democracy.

Demonstrators say they are fighting the erosion of the “one country, two systems” arrangement that enshrined some autonomy for Hong Kong since China took it back from Britain in 1997.

The increasingly violent clashes between police and protesters have roiled the Asian financial hub. Hong Kong’s stock market fell to a seven-month low on Tuesday.

PUSHED INTO THE ABYSS

A senior U.S. official, who spoke on condition of anonymity, said: “Freedoms of expression and assembly are core values that we share with the people of Hong Kong and these freedoms should be protected.”

The United Nations human rights commissioner, Michele Bachelet, urged Hong Kong authorities to exercise restraint and investigate evidence of their forces firing tear gas at protesters in ways banned under international law.

China responded by saying her comments sent the wrong signal to “violent criminal offenders”.

Chief Executive Lam made an appeal for calm and restraint.

“Take a minute to look at our city, our home,” she said, her voice cracking, at a news conference in the newly-fortified government headquarters complex.

“Can we bear to push it into the abyss and see it smashed to pieces?” she said.

Demonstrators want Lam to resign. She says she will stay.

The events present Chinese President Xi Jinping with one of his biggest challenges since he came to power in 2012.

Hong Kong legal experts say Beijing might be paving the way to use anti-terrorism laws to try to quell the demonstrations. On Monday,

Britain, a guarantor of the agreement that transferred Hong Kong to China in 1997, on Tuesday condemned the violence and urged dialogue.

“Concerning to see what’s happening in Hong Kong and the worrying pictures of clashes between police & protesters at the airport,” foreign minister Dominic Raab said on Twitter.

China has denied a request for two U.S. Navy ships to visit Hong Kong in the coming weeks, U.S. officials said.

ANGRY PASSENGERS

“I think paralyzing the airport will be effective in forcing Carrie Lam to respond to us … it can further pressure Hong Kong’s economy,” said Dorothy Cheng, a 17-year-old protester.

Despite the trouble, some flights were still scheduled to take off early on Wednesday morning with some tourists still waiting in the departure hall and dining areas, according to Reuters journalists in the airport.

Some passengers challenged protesters over the delays as tempers began to fray.

Flag carrier Cathay Pacific said flights might still be canceled at short notice. The airline, whose British heritage makes it a symbol of Hong Kong’s colonial past, is also in a political bind.

China’s civil aviation regulator demanded that the airline suspend staff who joined or backed the protests from flights in its airspace, pushing the carrier’s shares past Monday’s 10-year low.

Other Chinese airlines have offered passengers wanting to avoid Hong Kong a free switch to nearby destinations, such as Guangzhou, Macau, Shenzhen or Zhuhai, with the disruption sending shares in Shenzhen Airport Co Ltd <000089.SZ> surging.

(Additional reporting by Felix Tam, Noah Sin, Donny Kwok, Greg Torode and James Pomfret in Hong Kong; Additional reporting by Jamie Freed in Singapore, Stella Qiu in Beijing and Jeff Mason in Morristown, New Jersey; Writing by James Pomfret; Editing by Clarence Fernandez, Angus MacSwan and Grant McCool)

Class dismissed: Surge in arrests of foreign teachers in China

By Cate Cadell

BEIJING, August 13 (Reuters) – Arrests and deportations of foreign teachers in China have soared this year, lawyers, schools and teachers say, amid a broad crackdown defined by new police tactics and Beijing’s push for a “cleaner”, more patriotic education system.

Four law firms told Reuters that requests for representation involving foreign teachers had surged in the past six months by between four and tenfold, while teachers and schools confirmed arrests and temporary detentions for minor crimes had become commonplace.

Switzerland-based Education First (EF), which runs 300 schools across 50 Chinese cities, has seen a “significant” increase in detentions in China for alleged offences including drugs, fighting and cybersecurity violations, according to a June 27 internal notice sent to employees and seen by Reuters.

It said EF staff had been “picked up by police at their home and work as well as in bars and nightclubs and have been questioned and brought in for drug testing”. The notice said the school had also received warnings from embassies about the rise in arrests.

A spokeswoman for EF declined to comment on the content of the notices but said the company “values our close collaboration with the Chinese authorities,” adding that it “regularly reminds staff of important regulatory and compliance policies.”

An international school in Beijing and a teaching agency in Shanghai separately confirmed arrests had risen sharply.

“There’s tremendous pressure for them to keep things clean. It’s all part of (President) Xi Jinping’s idea to make sure that China can show a good face for the rest of the world,” said Peter Pang, principal attorney at the IPO Pang Xingpu Law Firm in Shanghai, which represents foreign teachers in disputes.

China’s Public Security Bureau and Ministry of Education did not respond to requests for comment.

The detentions come amid growing tensions between China and western countries, including the United States and Australia.

China had roughly 400,000 foreign citizens working in its education industry in 2017, the last year for which official figures are available, working in schools, colleges and language institutes.

The industry has long been plagued by abuses on both sides, with many foreign teachers in China working without proper visas and some schools taking advantage of that vulnerability.

Lawyers said a rising backlash against foreign influence in China’s fiercely nationalistic education system means even qualified teachers are increasingly vulnerable to exploitation.

LOVE EDUCATION, LOVE THE MOTHERLAND

Many of the legal cases involving foreign teachers are linked to new and enhanced drug-testing measures, including testing methods that can track drug use over a longer time, such as surprise inspections at teacher’s homes and workplaces, lawyers said.

Three former teachers from two schools in Beijing and Shanghai who were detained for between 10 and 30 days before being deported this year say authorities drug-tested teachers multiple times within weeks of arrival and conducted extensive interrogations.

One of the three, a 25-year-old Florida man who was deported in May after a 10-day detention in a Beijing jail, said he and a colleague underwent a urine screening on their first day in China, which came back clean, but were detained after a surprise workplace test two weeks later showed traces of cannabis in his hair.

“I didn’t touch a single drug in China,” said the man, declining to share his full name because he is currently looking for a job in the United States.

Hair tests can detect cannabis for up to 90 days, meaning teachers that come from countries where the drug is legal, including parts of the United States, are especially vulnerable.

“The problem with hair testing is that it can detect cannabis from months prior,” said Dan Harris, Seattle-based managing partner of law firm Harris Bricken, whose firm saw a steep rise in case requests involving foreign teachers beginning earlier this year.

The behavior of foreign teachers in China was thrust into the spotlight last month when 19 foreign citizens, including seven who worked for EF, were arrested in the eastern city of Xuzhou on drug charges.

The case drew fierce criticism in state media, which echoed earlier calls by Beijing to push for the eradicating of foreign influences from the country’s schools.

Last September, China launched a wide-reaching campaign to remove foreign influences from education, including efforts to ban foreign history courses, outlaw self-taught material and revise textbooks to focus on core Communist Party ideology.

The ongoing effort, which includes follow-up checks and random inspections at schools, is designed to promote “patriotism” and “core socialist values”, reflecting a “love for the motherland”, China’s education ministry said at the time.

RISKS OUTWEIGH REWARDS

Lawyers said rising anti-foreigner sentiment in Chinese education and a glut of teachers mean expats are also more likely to be exposed to non-criminal legal issues, including schools docking pay, refusing to provide documentation for visas and changing contracts without warning.

“When (schools) get a lot of applications they feel they are in a commanding position,” said Pang, whose firm has handled dozens of labor arbitrations between teachers and schools in recent months.

Emily, a 25-year old English teacher from the U.S. state of Utah, said a school in the southwestern Chinese city of Chengdu held her passport for 10 weeks in late 2018, refusing to hand it back until she threatened to call police.

“There was always an excuse, like registering my dorm with police or some administration to transfer my visa … at one point they just said they were keeping it safe,” she said, asking not to publish her full name or the name of the school because of an ongoing arbitration.

The Chengdu school did not respond to phone calls by Reuters. The HR employee who Emily said had held her passport confirmed she had worked at the school, but declined to comment on the case via a messaging app.

The school docked her 16,000 yuan ($2,269) monthly salary by 1,200 yuan for an unexpected “agency” fee, according to documents provided to her by the school before and after her arrival.

Lawyers say the practice is not unusual, and arbitration typically costs more than the withheld wages.

“What has changed is that many government officials think that kicking out Western influences like English teachers is doing the Party’s work, and the schools are taking advantage of it” said Harris, the Seattle lawyer, who now advises against foreigners teaching in China. “The risks of going to China to teach far outweigh the rewards.”

(Reporting by Cate Cadell; Editing by Tony Munroe and Alex Richardson)

Death toll rises to 44 as typhoon Lekima wreaks havoc in eastern China

Firefighters search for survivors in collapsed houses damaged by a landslide after Typhoon Lekima hit Shanzao village in Yongjia county, Wenzhou, Zhejiang province, China August 11, 2019. REUTERS/Stringer

BEIJING (Reuters) – The death toll from typhoon Lekima in eastern China rose to 44 people on Monday morning, according to official data, as the storm continued up the coast, racking up billions of dollars in economic losses and widely disrupting travel.

An additional 12 people were recorded dead from the storm, including seven from Zhejiang province and five from Shandong, with 16 people missing, according to data from provincial emergency bureaus and state media.

A wave brought by typhoon Lekima breaks on the shore next to a pedestrian in Qingdao, Shandong province, China August 11, 2019. REUTERS/Stringer

A wave brought by typhoon Lekima breaks on the shore next to a pedestrian in Qingdao, Shandong province, China August 11, 2019. REUTERS/Stringer

State broadcaster CCTV had put the death toll at 32 on Sunday.

Typhoon Lekima made landfall early on Saturday in China’s Zhejiang province, with winds gusting up to 187 kmh (116 mph). The center of the storm has since traveled north through Shandong and off the coast.

Many of the earlier deaths occurred when a natural dam collapsed in Zhejiang after a deluge of 160 mm (6.2 inches) of rain within three hours.

The Shandong Emergency Management Bureau said more than 180,000 people were evacuated in the province, adding to an earlier evacuation of roughly 1 million people in Zhejiang and Jiangsu provinces as well as the financial hub of Shanghai.

The latest update from Shandong brings the total estimated economic toll of the storm to 18 billion yuan ($2.55 billion) in China, including damage to 364,000 hectares of crops and more than 36,000 homes. Shandong alone estimated the total economic impact on agriculture was 939 million yuan.

Qingdao, a popular tourist hub in eastern Shandong, issued a red alert on Sunday, closing all its tourist sites and suspending 127 trains and all long-distance bus services, according to official media.

Lekima is China’s ninth typhoon this year. China’s state broadcaster said on Sunday more than 3,200 flights had been canceled but that some suspensions on high-speed railway lines had been lifted.

The typhoon was expected to weaken as it heads northwest off the coast of Shandong into the ocean east of China’s capital, Beijing.

(Reporting by Cate Cadell; Editing by Paul Tait)

Predicting the next U.S. recession, investors apprehensive

FILE PHOTO: Ships and shipping containers are pictured at the port of Long Beach in Long Beach, California, U.S., January 30, 2019. REUTERS/Mike Blake

By Saqib Iqbal Ahmed

NEW YORK (Reuters) – A protracted trade war between China and the United States, the world’s largest economies, and a deteriorating global growth outlook has left investors apprehensive about the end to the longest expansion in American history.

The recent rise in U.S.-China trade war tensions has brought forward the next U.S. recession, according to a majority of economists polled by Reuters who now expect the Federal Reserve to cut rates again in September and once more next year.

Trade tensions have pulled corporate confidence and global growth to multi-year lows and U.S. President Donald Trump’s announcement of more tariffs have raised downside risks significantly, Morgan Stanley analysts said in a recent note.

Morgan Stanley forecast that if the U.S. lifts tariffs on all imports from China to 25 percent for 4-6 months and China takes countermeasures, the U.S. would be in recession in three quarters.

Goldman Sachs Group Inc <GS.N> said on Sunday that fears of the U.S.-China trade war leading to a recession are increasing and that Goldman no longer expects a trade deal between the world’s two largest economies before the 2020 U.S. presidential election.

Global markets remain on edge with trade-related headlines spurring big moves in either direction. On Tuesday, U.S. stocks jumped sharply higher and safe-havens like the Japanese yen and Gold retreated after the U.S. Trade Representative said additional tariffs on some Chinese goods, including cell phones and laptops, will be delayed to Dec. 15.

Besides watching developments on the trade front economists and investors are watching for signs they hope can alert them to a coming recession.

1. THE YIELD CURVE

The U.S. yield curve plots Treasury securities with maturities ranging from 4 weeks to 30 years. When the spread between the yield on the 3-month Treasury bill and that of the 10-year Treasury note slips below zero, as it did earlier this year, it points to investors accepting a lower yield for locking money up for a longer period of time.

As recession signals go, this so-called inversion in the yield curve has a solid track record as a predictor of recessions. But it can take as long as two years for a recession to follow a yield curve inversion.

The closely-followed yield spread between U.S. 2-year and 10-year notes has also narrowed – marking the smallest difference since at 2007 – according to Refinitiv data.

GRAPHIC – Yield curve as a predictor of recessions🙂

2. UNEMPLOYMENT

The unemployment rate and initial jobless claims ticked higher just ahead or in the early days of the last two recessions before rising sharply. Currently the U.S. unemployment rate is near a 50-year low.

“Although job gains have slowed this year, they continue to signal an above-trend economy,” economists at BofA Merrill Lynch Global Research said in a recent note.

Claims will be watched over the coming weeks for signs that deteriorating trade relations between the United States and China, which have dimmed the economy’s outlook and roiled financial markets, were spilling over to the labor market.

(GRAPHIC – Unemployment rate: )

3. GDP OUTPUT GAP

The output gap is the difference between actual and potential economic output and is used to gauge the health of the economy.

A positive output gap, like the one now, indicates that the economy is operating above its potential. Typically the economy operates furthest below its potential at the end of recessions and peaks above its potential towards the end of expansions.

However, the output gap can linger in positive territory for years before a recession hits.

(GRAPHIC – The GDP output gap peaks before recessions🙂

4. CONSUMER CONFIDENCE

Consumer demand is a critical driver of the U.S. economy and historically consumer confidence wanes during downturns. Currently consumer confidence is near cyclical highs.

(GRAPHIC – Consumer confidence is at cyclical highs: )

5. STOCK MARKETS

Falling equity markets can signal a recession is looming or has already started to take hold. Markets turned down before the 2001 recession and tumbled at the start of the 2008 recession.

The recent pullback in U.S. stocks has done its share to raise concerns about whether the economy is heading into a recession. On a 12-month rolling basis, the market has turned down ahead of the last two recessions. The 12-month rolling average percent move is now below the recent highs of January 2018 but still above higher than the lows hit in December.

(GRAPHIC – The S&P 500 has fallen during recessions🙂

6. BOOM-BUST BAROMETER

The Boom-Bust Barometer devised by Ed Yardeni at Yardeni Research measures spot prices of industrials inputs like copper, steel and lead scrap, and divides that by initial unemployment claims. The measure fell before or during the last two recessions and has retreated from a peak hit in April.

(GRAPHIC – The Boom-Bust Barometer🙂

7. HOUSING MARKET

Housing starts and building permits have fallen ahead of some recent recessions. U.S. homebuilding fell for a second straight month in June and permits dropped to a two-year low, suggesting the housing market continued to struggle despite lower mortgage rates.

(GRAPHIC – Housing starts have fallen before prior recessions: )

8. MANUFACTURING

Given the manufacturing sector’s diminished role in the U.S. economy, the clout of the Institute for Supply Management’s (ISM) manufacturing index as a predictor of U.S. GDP growth has slipped in recent years. However, it is still worth watching, especially if it shows a tendency to drop well below the 50 level for an extended period of time.

ISM said its index of national factory activity slipped to 51.2 last month, the lowest reading since August 2016, as U.S. manufacturing activity slowed to a near three-year low in July and hiring at factories shifted into lower gear, suggesting a further loss of momentum in economic growth early in the third quarter.

“The slowdown in manufacturing activity likely reflects, in part, the tariffs that went into effect over the course of last year,” economists at BofA Merrill Lynch Global Research said in a note on Friday.

(GRAPHIC – ISM Manufacturing Index: )

9. EARNINGS

S&P 500 earnings growth dipped ahead of the last recession. Earnings estimates for S&P 500 companies have been coming down but companies are still expected to post growth for most quarters this year.

(GRAPHIC – Earnings fell during the last recession: )

10. HIGH-YIELD SPREADS

The gap between high-yield and U.S. government bond yields rose ahead of the 2007-2009 recession and then widened dramatically.

Credit spreads typically widen when perceived risk of default rises. Spreads have fallen from their January highs.

(GRAPHIC – Junk bond yields jumped in the 2008 recession🙂

11. FREIGHT SHIPMENTS

The Cass Freight Index, a barometer of the health of the shipping industry produced by data company Cass Information Systems Inc, logged a 5.3% year-over-year decline in June. That marked the index’s seventh straight month with a negative reading on a year-over-year basis.

“Whether it is a result of contagion or trade disputes, there is growing evidence from freight flows that the economy is beginning to contract,” Broughton Capital analyst Donald Broughton wrote in the June Cass Freight Index report.

(GRAPHIC – Cass Freight Index – shipments🙂

12. MISERY INDEX

The so-called Misery Index adds together the unemployment rate and the inflation rate. It typically rises during recessions and sometimes prior to downturns. It has slipped lower in 2019 and does not look very miserable.

(GRAPHIC – The Misery Index: )

(Reporting by Saqib Iqbal Ahmed; Editing by Chizu Nomiyama)

Hong Kong airport grinds to halt as China likens protests to terrorism

Anti-extradition bill protesters rally at the departure hall of Hong Kong airport in Hong Kong, China August 12, 2019. REUTERS/Thomas Peter

By Greg Torode and Vimvam Tong

HONG KONG (Reuters) – Hong Kong’s airport canceled all flights on Monday, blaming demonstrators for the disruptions, while China said the anti-government protests that have roiled the city through two summer months had begun to show “sprouts of terrorism”.

The airport authority said it was working with airlines to resume flights from 6 a.m. on Tuesday, but the developments raise the stakes after a weekend of skirmishes during which both activists and police toughened their stances.

Some Hong Kong legal experts say official descriptions of some protesters’ actions as terrorism could lead to the use of extensive anti-terror laws and powers against them.

China’s People’s Armed Police also assembled in the neighboring city of Shenzhen for exercises, the state-backed Global Times newspaper said.

People in the Asian financial hub responded by taking to the streets again, picketing a police station and returning in their hundreds to a metro station where police had hit activists with batons, to protest against the heavy-handed tactics.

The increasingly violent demonstrations have plunged the Chinese-ruled territory into its most serious crisis in decades, presenting Chinese leader Xi Jinping with one of his biggest popular challenges since he came to power in 2012.

“Hong Kong has come to a critical juncture,” said Hong Kong and Macau Affairs office spokesman Yang Guang in Beijing.

“Protesters have been frequently using extremely dangerous tools to attack the police in recent days, constituting serious crimes with sprouts of terrorism emerging.”

The protests began in opposition to a bill allowing extradition to the mainland but have widened to highlight other grievances, winning broad support.

The precise trigger for the airport’s closure was not clear, since protesters occupying the arrivals hall for four days have been peaceful.

“This is about our freedom,” said one of the thousands of protesters who remained there, a 24-year-old wearing a mask, who gave his name only as Yu. “Why should we leave?”

GROUNDED

Hong Kong is the world’s busiest air cargo port and the 8th busiest by passenger traffic, says the Airports Council International (ACI), a global association. It has been filled with anti-government protesters for four days.

The mostly young black-clad protesters have chanted slogans such as “No rioters, only tyranny!” and “Liberate Hong Kong!” while approaching travelers with flyers describing their demands and explaining the unrest.

Demonstrators say they are fighting the erosion of the “one country, two systems” arrangement enshrining some autonomy for Hong Kong when China took it back from Britain in 1997.

The activists at the airport have been polite and passengers mostly unperturbed. “I was expecting something, given all the news,” one arrival, Gurinda Singh, told Reuters.

“I’m just pleased my plane arrived and the protests here seem peaceful.”

Some activists moved to the departure area and caused disruptions, police told a news conference as the cancellations were announced.

Police declined to say if they would move to clear the demonstrators. There was no visible police presence in either the departure or arrivals area.

“Airport operations at Hong Kong International Airport have been seriously disrupted as a result of the public assembly at the airport today,” the city’s airport authority said in a statement, without elaborating.

About 190 flights were hit, Chinese aviation data firm VariFlight said, though planes already en route to Hong Kong were allowed to land.

RESTIVE WEEKEND

Demonstrators threw up barricades across the city at the weekend, as police fired tear gas into crowded underground train stations as well as rubber bullets and pepper pellets at close range.

In response, protesters have sought to channel a Bruce Lee maxim: “Be water,” employing a flash-mob strategy to frustrate authorities and stretch their resources.

Still, scores of protesters were arrested, sometimes after being beaten with batons and bloodied by police. One young female medic was hospitalized after being hit by a pellet round in the right eye.

Hundreds of people returned on Monday to the scene of some of the clashes to protest against the use of force.

“We are completely disappointed with Hong Kong police,” said Terry Ng, 30, a social worker protesting outside Wan Chai police station. “The weight of their shots caused a young girl to lose one eye. Do they still have a conscience?”

Authorities have called the citywide demonstrations illegal and dangerous, while highlighting their impact on the already-faltering economy and residents’ activities.

Beijing says criminals and agitators are stirring violence, but its use of the word “terrorism” on Monday was its starkest warning yet, possibly paving the way for a national-security response to the crisis.

China has used the threat of terrorism to justify tough measures in its regions of Xinjiang and Tibet, which have been criticized by rights groups and Western governments. It warned them off on Monday as well.

“Hong Kong is China’s Hong Kong and Hong Kong affairs are purely China’s internal affairs,” foreign ministry spokeswoman Hua Chunying said in a statement.

China has also put pressure on big companies, such as Cathay Pacific Airways, whose shares tumbled to a 10-year low on Monday, after it was told to suspend staff engaged in illegal protests.

Police, who have arrested more than 600 people since the unrest began more than two months ago, demonstrated a water cannon.

(Reporting by Greg Torode, Vimvam Tong, Clare Jim, Felix Tam, Noah Sin, Brenda Goh, Twinnie Siu, James Pomfret, Farah Master, Felix Tam, Anne Marie Roantree and Donny Kwok; Writing by Tom Westbrook; Editing by James Pomfret and Clarence Fernandez)

Trump says U.S., China still talking on trade but not ready for a deal

FILE PHOTO: U.S. President Donald Trump speaks about the shootings in El Paso and Dayton in the Diplomatic Room of the White House in Washington, U.S., August 5, 2019. REUTERS/Leah Millis

By Roberta Rampton

WASHINGTON (Reuters) – President Donald Trump said on Friday that the United States and China were still pursuing a trade agreement but he was not ready to make a deal.

Speaking to reporters at the White House before departing for fundraisers in New York state, Trump also said the United States would continue to refrain from doing business with Chinese telecoms equipment giant Huawei Technologies.

U.S. stocks extended losses after his comments, looking set to end a punishing week deep in the red on rising trade war worries.[.N]

“We’re doing very well with China. We’re talking with China. We’re not ready to make a deal – but we’ll see what happens,” Trump said.

“China wants to do something, but I’m not ready to do anything yet. Twenty-five years of abuse – I’m not ready so fast, so we’ll see how that works out.” the president added.

Trump said the United States would not do business with Huawei for the time being, although that might change with a trade deal.

The U.S. Commerce Department, which had effectively banned Huawei in May from purchasing U.S. technology, software and services over national security concerns, had been considering granting some licenses for American companies to sell certain products to Huawei.

(Reporting by Roberta Rampton and Jonas Ekblom; Writing by David Lawder and Humeyra Pamuk; Editing by Steve Orlofsky and Howard Goller)

China issues ‘red alert’ as super typhoon approaches mainland

Workers unload seafood from fishing boats before super typhoon Lekima makes landfall in Zhoushan, Zhejiang province, China August 8, 2019. Picture taken August 8, 2019. REUTERS/Stringer

SHANGHAI/TAIPEI (Reuters) – China’s weather bureau issued a red alert early on Friday as super typhoon Lekima approached Zhejiang province on the eastern coast, after forcing flight cancellations in Taiwan and shutting markets and businesses on the island.

The National Meteorological Center (NMC) said the typhoon, the strongest since 2014, was expected to hit the mainland in early on Saturday and then turn north. It has issued gale warnings for the Yangtze river delta region, which includes Shanghai.

Taiwan has already cancelled flights and ordered markets and schools to close on Friday as the typhoon heads northwest, cutting power to more than 40,000 homes and forcing the island’s high speed rail to suspend most of its services.

The island’s authorities issued landslide warnings after an earthquake of magnitude 6 struck its northeastern coast on Thursday, hours before the typhoon approached, which was forecasted to bring rainfall of up to 900 mm (35 inches) in its northern mountains.

More than 300 flights to and from Taiwan have been cancelled and cruise liners have been asked to delay their arrival in Shanghai.

Some trains from Shanghai have also suspended ticket sales over the weekend, and Beijing also said it would cancel several trains heading to and from typhoon-hit eastern regions in the Yangtze delta region.

Heavy rain and level-10 gales are expected to hit Shanghai on Friday and continue until Sunday, with 16,000 suburban residents set to be evacuated, the official Shanghai Daily reported.

The NMC warned that 24-hour rainfall levels across eastern China could reach around 250-320 millimetres from Friday afternoon to Saturday afternoon. Port authorities have already been ordered to take action, with ships set to be diverted to Hong Kong to help prevent accidents and collisions.

China’s Ministry of Water Resources has also warned of flood risks in the eastern, downstream sections of the Yangtze and Yellow rivers until Wednesday.

China is routinely hit by typhoons in its hot summer months but weather officials said last week they have been relatively infrequent so far this year.

(Reporting by David Stanway and Yimou Lee; Additional reporting by Beijing newsroom; Editing by Paul Tait and Michael Perry)