Tag Archives: China

Hong Kong protests and China’s tightening grip rattle business community

FILE PHOTO: Anti-extradition bill protesters stand behind a barricade during a demonstration near a flag raising ceremony for the anniversary of Hong Kong handover to China in Hong Kong, China July 1, 2019. REUTERS/Tyrone Siu/File Photo

By Iris Yuan and Vimvam Tong

HONG KONG (Reuters) – Chaotic scenes of protesters rampaging through Hong Kong’s legislature, trashing furniture and daubing graffiti over walls have sent jitters through the business community, which worries about the impact on the city’s status as a financial hub.

Plumes of smoke billowed among gleaming sky-scrapers early on Tuesday as police fired tear gas to disperse protesters in the heart of the Chinese-ruled city, home to the offices of some of the world’s biggest companies, including global bank HSBC.

Escalating unrest over a controversial extradition bill, which would allow people to be sent to mainland China for trial, grabbed global headlines and clouded the former British colony’s outlook as a finance hub, one of the city’s main pillars of growth.

“I think there will be damage to the reputation of Hong Kong,” said Yumi Yung, 35, who works in fintech. “Some companies may want to leave Hong Kong, or at least not have their headquarters here.”

Around 1,500 multinational companies make Hong Kong their Asian home because of its stability and rule of law. Some of the biggest and most violent protests in decades could change that perception.

Hong Kong returned to Chinese rule in 1997 under a “one country, two systems” formula that allows freedoms not enjoyed in mainland China, including freedom to protest and an independent judiciary. Monday was the 22nd anniversary.

Beijing denies interfering but, for many Hong Kong residents, the extradition bill is the latest step in a relentless march towards mainland control. Many fear it would put them at the mercy of courts controlled by the Communist Party where human rights are not guaranteed.

“If this bill is not completely scrapped, I will have no choice but to leave my home, Hong Kong,” said Steve, a British lawyer who has worked in Hong Kong for 30 years.

Daniel Yim, a 27-year-old investment banker, said both sides needed to sit down and work things out.

“I think the most effective way to address this will be that the government will … actually tackle this and speak to the people, and I guess, you know, both sides sit together and come up with … the appropriate solution.”

LOSING FREEDOM

Others raised concerns about the future of human rights and the judiciary. Many did not want to use their full names.

“To me, the biggest worry is how Hong Kong is losing its independence bit by bit and is getting dangerously close to a country that doesn’t value human rights and that doesn’t have an independent judicial system,” said Edward, an Australian citizen who has worked in the financial sector for 10 years.

The extradition bill, now suspended but not scrapped, has also spooked some tycoons into moving their personal wealth offshore, according to financial advisers familiar with the details.

An Australian businesswoman who has worked in Hong Kong for 16 years lamented what she saw as Beijing’s tightening grip.

“China is just taking away more and more freedom from Hong Kong,” she said.

“I feel sorry for Hong Kong people, especially Hong Kong people … (here) for more freedom, a better economy, a better life, and now it’s going backwards,” the woman said.

Such concerns came as China’s top newspaper warned on Wednesday that outbreaks of lawlessness could damage Hong Kong’s reputation and seriously hurt its economy.

Calm has returned for now, but the events of recent weeks have set many people thinking.

“If it had escalated, I would consider moving elsewhere,” a 44-year-old hedge fund manager said of the ransacking of the legislature. “I employ four to five people in Hong Kong so yes, I would consider moving.”

(Additional reporting by Sumeet Chatterjee; Writing by Anne Marie Roantree; Editing by Paul Tait and Nick Macfie)

Trump says China trade talks ‘back on track,’ new tariffs on hold

U.S. President Donald Trump and China's President Xi Jinping shake hands before their bilateral meeting during the G20 leaders summit in Osaka, Japan, June 29, 2019. REUTERS/Kevin Lamarque

By Roberta Rampton and Michael Martina

OSAKA (Reuters) – The United States and China agreed on Saturday to restart trade talks after President Donald Trump offered concessions including no new tariffs and an easing of restrictions on tech company Huawei in order to reduce tensions with Beijing.

China agreed to make unspecified new purchases of U.S. farm products and return to the negotiating table, Trump said. No deadline was set for progress on a deal, and the world’s two largest economies remain at odds over significant parts of an agreement.

The last major round of talks collapsed in May.

Financial markets, which have been rattled by the nearly year-long trade war, are likely to cheer the truce. Washington and Beijing have slapped tariffs on billions of dollars of each other’s imports, stoking fears of a wider global trade war. Those tariffs remain in place while negotiations resume.

“We’re right back on track,” Trump told reporters after an 80-minute meeting with Chinese President Xi Jinping at a summit of leaders of the Group of 20 (G20) major economies in Osaka, Japan.

“We’re holding back on tariffs and they’re going to buy farm products,” Trump said, without giving details about the purchases.

Trump tweeted hours later that the meeting with Xi went “far better than expected.”

“The quality of the transaction is far more important to me than speed,” he tweeted. “I am in no hurry, but things look very good!”

The U.S. president had threatened to slap new levies on roughly $300 billion of additional Chinese goods, including popular consumer products if the meeting in Japan proved unsuccessful. Such a move would have extended existing tariffs to almost all Chinese imports into the United States.

In a lengthy statement on the two-way talks, China’s foreign ministry quoted Xi as telling Trump he hoped the United States could treat Chinese companies fairly.

“China is sincere about continuing negotiations with the United States … but negotiations should be equal and show mutual respect,” the foreign ministry quoted Xi as saying.

Trump offered an olive branch to Xi on Huawei Technologies Co [HWT.UL], the world’s biggest telecom network gear maker. The Trump administration has said the Chinese firm is too close to China’s government and poses a national security risk, and has lobbied U.S. allies to keep Huawei out of next-generation 5G telecommunications infrastructure.

Trump’s Commerce Department has put Huawei on its “entity list,” effectively banning the company from buying parts and components from U.S. companies without U.S. government approval.

But Trump said on Saturday he did not think that was fair to U.S. suppliers, who were upset by the move. “We’re allowing that, because that wasn’t national security,” he said.

CHEERS FROM CHIP MAKERS

Trump said the U.S. Commerce Department would study in the next few days whether to take Huawei off the list of firms banned from buying components and technology from U.S. companies without government approval.

China welcomed the step.

“If the U.S. does what it says, then of course, we welcome it,” said Wang Xiaolong, the Chinese foreign ministry’s envoy for G20 affairs.

U.S. microchip makers also applauded the move.

“We are encouraged the talks are restarting and additional tariffs are on hold and we look forward to getting more detail on the president’s remarks on Huawei,” John Neuffer, president of the U.S. Semiconductor Association, said in a statement.

Republican U.S. Senator Marco Rubio, however, tweeted that any agreement to reverse the recent U.S. action against Huawei would be a “catastrophic mistake” and that legislation would be needed to put the restrictions back in place if that turned out to be the case.

Last month, Rubio and Democratic U.S. Senator Mark Warner urged Trump to not use Huawei as a bargaining chip for trade negotiations.

Huawei has come under mounting scrutiny for over a year, led by U.S. allegations that “back doors” in its routers, switches and other gear could allow China to spy on U.S. communications.

The company has denied its products pose a security threat. It declined to comment on the developments on Saturday.

The problems at Huawei have filtered across to the broader chip industry, with Broadcom Inc warning of a broad slowdown in demand and cutting its revenue forecast.

Trump said he and Xi did not discuss the extradition proceedings against Meng Wanzhou, Huawei’s chief financial officer, who was arrested in Canada in December on charges alleging she misled global banks about Huawei’s relationship with a company in Iran.

RELIEF AND SCEPTICISM

Scores of Asia specialists, including former U.S. diplomats and military officers, urged Trump to rethink policies that “treat China as an enemy,” warning that approach could hurt U.S. interests and the global economy, according to a draft open letter reviewed by Reuters on Saturday.

Investors, businesses and financial leaders have for months been warning that an intractable tit-for-tat tariff war between the United States and China could damage global supply chains and push the world economy over a cliff.

International Monetary Fund Managing Director Christine Lagarde on Saturday urged G20 policymakers to reduce tariffs and other obstacles to trade, warning that the global economy had hit a “rough patch” due to the trade conflict.

Although analysts cheered a resumption of talks between Washington and Beijing, some questioned whether the two sides would be able to build enough momentum to breach the divide and forge a lasting deal.

“Translating this truce into a durable easing of trade tensions is far from automatic … especially as what’s in play now extends well beyond economics to include delicate national security issues of both immediate- and longer-term nature,” said Mohamed El-Erian, chief economic adviser at Allianz.

The United States says China has been stealing American intellectual property for years, forces U.S. firms to share trade secrets as a condition for doing business in China, and subsidizes state-owned firms to dominate industries.

China has said the United States is making unreasonable demands and must also make concessions.

The negotiations hit an impasse in May after Washington accused Beijing of reneging on reform pledges made during months of talks. Trump raised tariffs to 25% from 10% on $200 billion of Chinese goods, and China retaliated by raising levies on a list of U.S. imports.

(Reporting by Roberta Rampton, Michael Martina and Chris Gallagher in Osaka; Additional reporting by Koh Gui Qing in New York, Ben Blanchard in Beijing and Leika Kihara in Osaka and Jennifer Ablan in New York; Writing by Linda Sieg, Malcolm Foster, Jeff Mason and Paul Simao; Editing by Clarence Fernandez, Himani Sarkar)

Hong Kong protesters smash up legislature in direct challenge to China

Anti-extradition bill protesters use the flashlights from their phones as they march during the anniversary of Hong Kong's handover to China in Hong Kong, China July 1, 2019. REUTERS/Tyrone Siu

By John Ruwitch and Sumeet Chatterjee

HONG KONG (Reuters) – Hundreds of Hong Kong protesters stormed the legislature on the anniversary of the city’s 1997 return to China on Monday, destroying pictures and daubing walls with graffiti in a direct challenge to China as anger over an extradition bill spiraled out of control.

Some carried road signs, others corrugated iron sheets and pieces of scaffolding upstairs and downstairs as about a thousand gathered around the Legislative Council building in the heart of the former British colony’s financial district.

Some sat at legislators’ desks, checking their phones, while others scrawled “Withdraw anti-extradition” on walls.

The government called for an immediate end to the violence, saying it had stopped all work on extradition bill amendments and that the legislation would automatically lapse in July next year.

There was no immediate response from the protesters, although some appeared to retreat as the evening wore on.

A small group of mostly students wearing hard hats and masks had used a metal trolley, poles and scaffolding to charge again and again at the compound’s reinforced glass doors, which eventually gave.

The council, the mini-parliament, issued a red alert, ordering the protesters to leave immediately.

It did not say what would happen if they didn’t but police did not immediately intervene.

The Legislative Council Secretariat released a statement canceling business for Tuesday. The central government offices said they would close on Tuesday “owing to security consideration”.

Riot police in helmets and carrying batons earlier fired pepper spray as the standoff continued into the sweltering heat of the evening. Some demonstrators removed steel bars that were reinforcing parts of the council building.

Banners hanging over flyovers at the protest site read: “Free Hong Kong.”

The protesters, some with cling film wrapped around their arms to protect their skin in the event of tear gas, once again paralyzed parts of the Asian financial hub as they occupied roads after blocking them off with metal barriers.

Hong Kong leader Carrie Lam suspended the bill on June 15 after some of the largest and most violent protests in the city in decades but stopped short of protesters’ demands to scrap it.

It was not immediately clear that the announcement it would lapse would ease the tension.

The Beijing-backed leader is now clinging on to her job at a time of an unprecedented backlash against the government that poses the greatest popular challenge to Chinese leader Xi Jinping since he came to power in 2012.

“The kind of deafness that I see in the government this time around despite these protests is really worrying. The complete disregard for the will of the people is what alarms me,” said Steve, a British lawyer show has worked in Hong Kong for 30 years.

“If this bill is not completely scrapped, I will have no choice but to leave my home, Hong Kong.”

Opponents of the extradition bill, which would allow people to be sent to mainland China for trial in courts controlled by the Communist Party, fear it is a threat to Hong Kong’s much-cherished rule of law.

Hong Kong returned to China under a “one country, two systems” formula that allows freedoms not enjoyed in mainland China, including the freedom to protest and an independent judiciary.

Beijing denies interfering but, for many Hong Kong residents, the extradition bill is the latest step in a relentless march toward mainland control.

China has been angered by criticism from Western capitals, including Washington and London, about the legislation. Beijing said on Monday that Britain had no responsibility for Hong Kong any more and was opposed to its “gesticulating” about the territory.

Protesters break into the Legislative Council building during the anniversary of Hong Kong's handover to China in Hong Kong China July 1, 2019. REUTERS/Tyrone Siu

Protesters break into the Legislative Council building during the anniversary of Hong Kong’s handover to China in Hong Kong China July 1, 2019. REUTERS/Tyrone Siu

THOUSANDS RALLY

Tens of thousands marched in temperatures of around 33 degrees Celsius (91.4°F) from Victoria Park in an annual rally. Many clapped as protesters held up a poster of Lam inside a bamboo cage. Organizers said 550,000 turned out. Police said there were 190,000 at their peak.

More than a million people have taken to the streets at times over the past three weeks to vent their anger.

A tired-looking Lam appeared in public for the first time in nearly two weeks, before the storming of the legislature, flanked by her husband and former Hong Kong leader Tung Chee-hwa.

“The incident that happened in recent months has led to controversies and disputes between the public and the government,” she said. “This has made me fully realize that I, as a politician, have to remind myself all the time of the need to grasp public sentiment accurately.”

PROTEST MOVEMENT REINVIGORATED

Beijing’s grip over Hong Kong has intensified markedly since Xi took power and after pro-democracy street protests that gripped the city in 2014 but failed to wrestle concessions from China.

Tensions spiraled on June 12 when police fired rubber bullets and tear gas at protesters near the heart of the city, sending plumes of smoke billowing among some of the world’s tallest skyscrapers.

The uproar has reignited a protest movement that had lost steam after the failed 2014 demonstrations that led to the arrests of hundreds.

Activists raised a black bauhinia flag to half-mast outside the Legislative Council building before the rally and turned Hong Kong’s official flag, featuring a white bauhinia flower on a red background, upside down.

The turmoil comes at a delicate time for Beijing, which is grappling with a trade dispute with the United States, a faltering economy and tensions in the South China Sea.

Beyond the public outcry, the extradition bill has spooked some Hong Kong tycoons into starting to move their personal wealth offshore, according to financial advisers familiar with the details.

(Additional reporting by Reuters TV, Alun John, Vimvam Tong, Thomas Peter, David Lague, Jessie Pang, Anne Marie Roantree, Sharon Lam, Donny Kwok, Joyce Zhou, Twinnie Siu and Felix Tam in HONG KONG and Ben Blanchard in BEIJING, Writing by Anne Marie Roantree; Editing by Nick Macfie)

Trump prepares for ‘productive’ talks with Xi on trade war

Japan's Prime Minister Shinzo Abe is flanked by U.S. President Donald Trump and China's President Xi Jinping during a meeting at the G20 leaders summit in Osaka, Japan, June 28, 2019. REUTERS/Kevin Lamarque

By Roberta Rampton

OSAKA (Reuters) – U.S. President Donald Trump on Friday said he hoped for productive talks with Chinese President Xi Jinping on a trade war that is casting a shadow on global growth, but said he had not made any promises about a reprieve from escalating tariffs.

The trade feud and signs of a global slowdown have loomed over a two-day Group of 20 (G20) summit in the Japanese city of Osaka, where Trump and Xi met in passing and prepared for one-on-one talks on Saturday.

To lay the groundwork, Chinese Vice Premier Liu He met Trump’s treasury secretary, Steven Mnuchin, and Trade Representative Robert Lighthizer at the hotel where the U.S. delegation was staying, a source familiar with the talks said.

Expectations have dimmed that the world’s two biggest economies can ease tension when Trump and Xi meet.

“At a minimum it will be productive. We’ll see what happens and what comes out of it,” Trump told reporters after a series of meetings with leaders where he made clear that his priority was two-way trade deals to boost the U.S. economy.

Asked, however, if he had promised Xi a six-month reprieve on imposing new tariffs on a $300 billion list of Chinese imports, Trump said: “No.”

Trump has already imposed tariffs on $250 billion of Chinese imports and is threatening to extend those to another $300 billion of goods, effectively everything China exports to the United States. China has retaliated with tariffs on U.S. imports.

Asian shares stumbled and gold slipped on Friday, as doubts grew that the highly anticipated meeting between the two leaders would bring progress.

In Beijing, foreign ministry spokesman Geng Shuang said he hoped the U.S. side could meet China halfway.

“This accords with the interests of both countries and is what the international community is hoping for,” he told a news briefing.

China has consistently pushed back against criticism from Western countries, especially the United States and European Union, about things like intellectual property rights and the difficulty of doing business in China.

“China’s promise to expand its opening up is not just a cheque that can’t be cashed,” Xi told German Chancellor Angela Merkel at a side meeting in Osaka.

THREAT TO GLOBAL GROWTH

Trump’s administration also has trade feuds with India, Japan and Germany, whose leaders he met on Friday.

Trump said he saw U.S. trade prospects improving, days after criticizing the U.S.-Japan security treaty and demanding that India withdraw retaliatory tariffs.

“I think we’re going to have some very big things to announce. Very big trade deal,” Trump said before he began talks with Indian Prime Minister Narendra Modi. He gave no details.

A White House official said the two leaders had called on their teams to work on mutually beneficial trade solutions.

Trump also made a push to discuss U.S. concerns about Chinese telecoms equipment maker Huawei.

The United States has pressed its allies to shun Huawei in their fifth generation, or 5G, networks on security grounds, and it has also suggested it could be a factor in a trade deal with Xi.

“We actually sell Huawei many of its parts,” Trump said at his meeting with Modi. “So we’re going to be discussing that and also how India fits in. And we’ll be discussing Huawei.”

Several leaders warned that the growing Sino-U.S. trade friction was threatening global growth.

“The trade relations between China and the United States are difficult, they are contributing to the slowdown of the global economy,” European Commission President Jean-Claude Juncker told a news conference.

Xi also warned about the protectionist steps he said some developed countries were taking.

“All this is destroying the global trade order … This also impacts common interests of our countries, overshadows peace and stability worldwide,” Xi told a gathering of leaders of the BRICS grouping on the sidelines of the G20.

Japanese Prime Minister Shinzo Abe, other leaders and delegates attend a family photo session at G20 leaders summit in Osaka, Japan, June 28, 2019. REUTERS/Kim Kyung-Hoon/Pool

Japanese Prime Minister Shinzo Abe, other leaders and delegates attend a family photo session at G20 leaders summit in Osaka, Japan, June 28, 2019. REUTERS/Kim Kyung-Hoon/Pool

REFORMING WORLD TRADE RULES

Modi, at the same meeting, called for a focus on reforming the World Trade Organization (WTO) and Russian President Vladimir Putin decried what he called efforts to destroy the Geneva-based body.

“We consider counter-productive any attempts to destroy WTO or to lower its role,” Putin said.

The situation of the global economy was worrying, as trade felt the effect of “protectionism (and) politically motivated restrictions”, he added.

Russian Economy Minister Maxim Oreshkin said there was no agreement on how to reform the WTO system, whose rules Washington believes are outdated, though a Japanese official said G20 members agreed on the importance of reform.

The G20 leaders were also struggling to find common ground on issues such as information security, climate change and migration, said Svetlana Lukash, a Russian official helping to coordinate the meetings.

A White House official took a more positive view, saying there was a “good sense of unity in the room” between most leaders on working together on economic issues.

“China was less positive in its outlook which was in stark contrast to basically everybody else,” said the official, who spoke on condition of anonymity.

Trump, who often castigates trading partners on Twitter and at raucous political rallies, put a positive spin on trade developments.

“I appreciate the fact that you’re sending many automobile companies into Michigan and Ohio and Pennsylvania and North Carolina,” Trump told Japanese Prime Minister Shinzo Abe, who had presented him with a map showing the locations of Japanese auto investments in the United States.

Abe urged G20 leaders to send a strong message in support of free and fair trade, warning that trade and geopolitical tensions were rising and downside risks to the global economy prevailed. He also said he wanted to see momentum toward WTO reform.

Japanese and U.S. officials will meet next month to accelerate progress toward a trade deal, Economy Minister Toshimitsu Motegi told reporters after meeting Lighthizer, but added that they did not discuss a target date.

(Additional reporting by Leika Kihara, Kiyoshi Takenaka and Katya Golubkova; Additional reporting by Ben Blanchard in BEIJING; Writing by Linda Sieg in Tokyo; Editing by Clarence Fernandez, Robert Birsel and Nick Macfie)

Vatican says China intimidating Catholics loyal to pope

FILE PHOTO: A believer prays outside St. Joseph's Church, a government-sanctioned Catholic church, in Beijing, China, October 1, 2018. REUTERS/Thomas Peter/File Photo

By Philip Pullella

VATICAN CITY (Reuters) – The Vatican asked China’s communist government on Friday to stop intimidating Catholic clergy who want to remain unequivocally loyal to the pope and refuse to sign ambiguous official registration forms.

The request, contained in Vatican guidelines to clergy in mainland China, was the latest hiccup in relations between the Holy See and Beijing since the two sides signed a historic and disputed pact on the naming of bishops last September.

Under Chinese law, priests and bishops must register with the state. They also must sign a form accepting the principle of independence, autonomy and self-administration of the Church in China.

Some have refused, fearing that it could jeopardize their fidelity to the pope as their religious leader and the independence of the local Church on doctrinal matters.

Catholics in China are emerging from more than half a century of division which saw them split between a state-backed “official” Church and a “non-official” underground Church that remained loyal to Rome.

Some divisions have begun to dissipate slowly since the September agreement, which gives the pope final say in the appointment of bishops. But the registration process has caused difficulties for those emerging from the non-official Church.

In the guidelines, the Vatican called for a registration procedure “that is more respectful of Catholic doctrine, and thus of the consciences of those involved”.

It added: “The Holy See asks that no intimidatory pressures be applied to the ‘non official’ Catholic communities, as, unfortunately, has already happened.”

The guidelines, requested by some Chinese bishops, said clergy should demand to include a sentence affirming that Catholic doctrine would be respected.

If authorities do not permit that, the priest or bishop, before signing, should take a stand orally before a government authority, preferably with a witness present.

September’s landmark deal between the Vatican and China has split Catholics there and around the world, with some critics of the pope saying he has caved in to the Communist government.

The deal’s most outspoken critic has been Cardinal Joseph Zen, the former archbishop of Hong Kong.

China’s constitution guarantees religious freedom, but since President Xi Jinping took office six years ago, the government has tightened restrictions on religions seen as a challenge to the authority of the ruling Communist Party.

China has been following a policy it calls the “Sinicisation” of religion, trying to root out foreign influences and enforce obedience to the Communist Party.

(Reporting by Philip Pullella; Editing by Mark Heinrich)

Fresh protests hit Hong Kong as activists seek voice at G20

Demonstrators protest outside police headquarters, demanding Hong Kong's leaders to step down and withdraw the extradition bill, in Hong Kong, China June 26, 2019. REUTERS/Tyrone Si

By Jessie Pang and Vivam Tong

HONG KONG (Reuters) – Protesters in Hong Kong blocked roads and forced workers to leave the justice secretary’s offices on Thursday in the latest unrest to rock the city over an extradition bill that has now been suspended.

Millions have thronged the streets in the past three weeks to demand that the bill, which would allow criminal suspects to be sent to mainland China for trial in courts controlled by the Chinese Communist Party, be scrapped altogether.

“You know what everybody has deep in their hearts – is that this is about our future and it’s very very personal,” said 53-year-old Brian Kern, who was attending the protests.

In sweltering heat of 32 degrees C (89.6F), some protesters chanted, “Withdraw evil law, release martyrs…Teresa Cheng, come out,” referring to the justice secretary. Others shouted, “Condemn excessive force by police and release protesters.”

Police formed a cordon to block the demonstrators and one officer held a banner warning them away. Minor scuffles broke out between pro-democracy group Demosisto and officers.

“Fight for Justice”, “Free Hong Kong,” and “Democracy Now” were some of the demands emblazoned on protest banners.

Police chief Stephen Lo warned of consequences for outbreaks of violence and condemned what he said was an environment of hostility making his officers’ task difficult.

BATON CHARGE

In the early hours, riot police wielding batons and shields chased dozens of protesters as they broke up a siege of police headquarters. By nightfall on Thursday, only around 200 protesters remained. Black-clad and masked, they sat peacefully outside government headquarters.

The demonstrators have seized on this week’s G20 summit of world leaders in Japan to appeal for Hong Kong’s plight to be put on the agenda, a move certain to rile Beijing, which has vowed not to tolerate such discussion.

“We know that the G20 is coming. We want to grasp this opportunity to voice for ourselves,” said Jack Cool Tsang, 30, a theater technician who took a day off work to protest.

Images of police firing rubber bullets and tear gas beneath gleaming skyscrapers this month near the heart of the financial center grabbed global headlines and drew condemnation from international rights groups and protest organizers.

Hong Kong chief executive Carrie Lam, who has kept a low profile since her latest public apology over a week ago, bowed to public pressure and suspended the bill a day after the violent protests but stopped short of canceling the measure outright and rejected repeated calls to step down.

Opponents of the extradition bill fear being placed at the mercy of a justice system rights group say is plagued by torture, forced confessions and arbitrary detentions.

The demonstrations, which pose the greatest popular challenge to Chinese President Xi Jinping since he took power in 2012, have repeatedly forced the temporary closure of government offices, blocked major roads and caused massive disruptions.

Since Hong Kong returned to Chinese rule in 1997, it has been governed under a “one country, two systems” formula that allows freedoms not enjoyed in mainland China, including the liberty to protest and an independent judiciary.

But many accuse China of increased meddling over the years, by obstructing democratic reform, interfering with elections, suppressing young activists, as well as being behind the disappearance of five Hong Kong-based booksellers who specialized in works critical of Chinese leaders.

LAM VOICES SUPPORT FOR POLICE

ay, a Hong Kong government statement said Lam had met senior police officers to express thanks for their dedication during the protests and gave them her full support to maintain law and order in the city.

“She said she understands that members of the force and their family members have been put under pressure and that a small number of people even provoked the police intentionally, which is not acceptable,” the statement said.

Lam also met representatives in the education and religious sectors, senior civil servants as well as foreign consuls to exchange views on the “current social situation,” it said.

(Reporting By Vimvam Tong, Jessie Pang, Delfina Wentzel, Donny Kwok and Noah Sin; Writing by Anne Marie Roantree and Farah Master; Editing by Clarence Fernandez and Mark Hienrich)

S&P 500 hits all-time high on trade optimism

FILE PHOTO: Traders work on the main trading floor after the opening bell at New York Stock Exchange (NYSE) in New York, U.S. June 20, 2019. REUTERS/Brendan McDermid/File Photo

By Amy Caren Daniel and Shreyashi Sanyal

(Reuters) – The S&P 500 touched a record high for the second straight session on Friday as hopes of trade talks between Washington and Beijing were lifted by U.S. Vice President Mike Pence’s decision to defer a planned speech on China policy.

The decision was taken amid “positive signs” that trade talks with China could be back on track, the Wall Street Journal reported, citing a senior administration official.

The benchmark S&P 500 index hit an intraday high of 2,964.15 on Friday, but retreated into a tight range as rising tensions between the United States and Iran kept investors on edge.

The United States and China have said they would restart their trade talks after a lull at the Group of 20 summit in Japan next week.

“Investors are cautiously optimistic about the G20 summit. If they make progress then markets will celebrate that,” said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee.

Stocks are now set to log their third straight week of gains, after posting their worst monthly performance this year in May on fears the prolonged trade war would hit global economic growth.

U.S. President Donald Trump said on Friday he aborted a military strike on Iran in response to Teheran downing a U.S. drone, but the possibility of a U.S. retaliation pushed crude prices higher and helped lift the energy sector by 0.49%. [O/R]

Traders also pointed to higher volatility during Friday’s session on account of “quadruple witching,” as investors unwind interests in futures and options contracts prior to expiration.

At 13:09 p.m. ET, the Dow Jones Industrial Average was up 45.72 points, or 0.17%, at 26,798.89 and the S&P 500 was down 0.53 points, or 0.02%, at 2,953.65.

The Nasdaq Composite was down 7.13 points, or 0.09%, at 8,044.21.

The tech-heavy index was weighed down by a 2.02% fall in PayPal Holdings Inc after the digital payments company said its chief operating officer Bill Ready would step down.

CarMax Inc rose as much as 6% to a record high after the used-vehicles retailer posted quarterly results above analysts’ expectations.

Carnival Corp fell for the second day, down 4.53%, and among the biggest decliners. Several brokerages trimmed their price targets after the cruise operator cut its 2019 profit forecast.

Declining issues outnumbered advancers for a 1.47-to-1 ratio on the NYSE and for a 1.71-to-1 ratio on the Nasdaq.

The S&P index recorded 33 new 52-week highs and two new lows, while the Nasdaq recorded 42 new highs and 49 new lows.

(Reporting by Amy Caren Daniel and Shreyashi Sanyal in Bengaluru; Editing by Sriraj Kalluvila)

Black-clad, anti-extradition protesters singing “Hallelujah to the Lord” flood streets of Hong Kong

Protesters gather outside police headquarters in Hong Kong, China June 21, 2019. REUTERS/Ann Wang

By Jessie Pang and Clare Jim

HONG KONG (Reuters) – Thousands of demonstrators blockaded police headquarters on Friday as Asia’s leading financial center braced itself for a third weekend of mass protests against an extradition bill that has plunged the Chinese-ruled city into crisis.

Groups of mostly students wearing hard hats, goggles and face masks set up roadblocks and trapped vehicles in a generally peaceful protest to demand that leader Carrie Lam, who promoted and then postponed the bill, scrap it altogether.

“Having people here is giving pressure to the government that we don’t agree with your extradition plans,” said student Edison Ng, who was protesting in sweltering heat of about 32 degrees Celsius (90F).

“It is not clear how long we will stay… To go or not to go, (the) people will decide,” he added.

The protests, which pose the greatest popular challenge to Chinese President Xi Jinping since he took power in 2012, once again forced the temporary closure of Hong Kong government offices over security concerns.

Roads that would normally be jammed with traffic near the heart of the former British colony were empty, with demonstrators reinforcing roadblocks with metal barriers.

“Never surrender,” echoed through the streets as the protesters chanted near police headquarters and called on police chief Stephen Lo to step down.

Riot police armed with helmets and shields appeared from the balcony of police headquarters but withdrew back inside after heavy chanting from the crowd. Police warned activists through loud hailers not to charge.

Thousands remained outside government buildings on Friday night, with the majority sitting peacefully and spraying each other with water to keep cool. Nearby, a large group sang “Sing Hallelujah to the Lord”, which has emerged as the unlikely anthem of the protests.

Hong Kong returned to Chinese rule in 1997, since when it has been governed under a “one country, two systems” formula that allows freedoms not enjoyed in mainland China, including a much-cherished independent judiciary.

Millions of people, fearing further erosion of those freedoms, have clogged the streets of the Asian financial center this month to rally against the bill, which would allow people to be extradited to the mainland to face trial in courts controlled by the Communist Party.

It triggered the most violent protests in decades when police fired rubber bullets and tear gas to disperse the crowds. Beijing’s squeeze sparked pro-democracy protests in 2014 that paralyzed parts of the city for 79 days.

Many accuse China of obstructing democratic reforms, interfering with elections and of being behind the disappearance of five Hong Kong-based booksellers, starting in 2015, who specialized in works critical of Chinese leaders.

Friday’s marchers demanded that the government drop all charges against those arrested in last week’s clashes, charge police with what they describe as violent action and stop referring to the protests as a riot.

A small group of demonstrators hurled eggs at police outside the headquarters to protest against police violence. Amnesty International in a statement on Friday that evidence of unlawful use of force by police during the June 12 protest was “irrefutable”.

The government in a statement late on Friday said the protests had caused much disruption and appealed to protesters to act peacefully and rationally. With regard to the bill, it said the government had put a stop to legislation on the matter.

“SINCERE AND HUMBLE ATTITUDE”

Opponents of the extradition bill fear the law could put them at the mercy of the mainland Chinese justice system which is plagued by torture, forced confessions and arbitrary detentions.

The turmoil has also raised questions over Lam’s ability to govern, two years after she was selected and pledged to “unite and move forward”.

Justice Secretary Teresa Cheng became the latest government minister to apologize over the bill.

“Regarding the controversies and disputes in society arising from the strife in the past few months, being a team member of the government, I offer my sincere apology to all people of Hong Kong,” Cheng wrote in her blog.

“We promise to adopt a most sincere and humble attitude to accept criticisms and make improvements in serving the public.”

While Lam admitted shortcomings over the bill and said she had heard the people “loud and clear”, she has rejected repeated calls to step down.

Concerns over the bill spread quickly, from democratic and human rights groups to the wider Hong Kong community, including pro-establishment business figures, some usually loath to contradict the government. Some Hong Kong tycoons have started moving personal wealth offshore.

Hong Kong’s Bar Association said in a statement that it was asking the government to withdraw the extradition bill and make a commitment that any legislation would not proceed without having a full and open consultation.

Protesters had gathered early on Friday outside government offices before marching toward police headquarters. One activist read a letter of support from a Taiwan student.

“Brave HKers, perhaps when faced with adversity, we are all fragile and small, but please do not give up defending everything that you love,” the protester read through a loud hailer to applause.

Beijing has never renounced the use of force to take over self-ruled Taiwan, which it regards as a recalcitrant, breakaway province. Many have waved Taiwan flags at recent demonstrations in Hong Kong, images certain to rile authorities in Beijing.

Taiwan, overwhelmingly opposed to a “one country, two systems” formula for itself, has voiced support for Hong Kong.

(Additional reporting by Jessie Pang, Vimvam Tong, Clare Jim, Anne Marie Roantree, Farah Master, Twinnie Siu, Sijia Jiang Felix Tam, Ryan Chang; Writing by Anne Marie Roantree and Farah Master; Editing by Clarence Fernandez; Nick Macfie and Toby Chopra)

Hong Kong leader signals end to extradition bill but refuses to quit

Pro-democracy activists Nathan Law, Joshua Wong and Agnes Chow attend a news conference regarding the proposed extradition bill, outside the Legislative Council building in Hong Kong, China June 18, 2019. REUTERS/Tyrone Siu

By Clare Jim and Noah Sin

HONG KONG (Reuters) – Hong Kong leader Carrie Lam on Tuesday signaled the end of a controversial extradition bill that she promoted and then postponed after some of the most violent protests since the former British colony returned to Chinese rule in 1997.

In a closely watched press conference, Lam apologized for the turmoil but refused to say the bill would be “withdrawn”, only that it wouldn’t be re-introduced during her time in office if public fears persist.

This was the strongest indicator yet that the government was effectively shelving legislation that would allow people to be extradited to mainland China to face trial, even if it fell short of protester demands for the government to scrap the bill altogether.

“Because this bill over the past few months has caused so much anxiety, and worries and differences in opinion, I will not, this is an undertaking, I will not proceed again with this legislative exercise if these fears and anxieties cannot be adequately addressed,” Lam told reporters.

Lam, appearing both contrite and defiant, used much of the same language as a previous press conference on Saturday when she announced a postponement of the bill. A day later, about two million people spilled on to the streets, many demanding that she step down.

Lam, asked repeatedly whether she would quit, refused to do so, saying there remained important work ahead in the next three years, which would bring her to the end of her current five-year term of office.

“After this incident, I think work in the next three years will be very difficult … but myself and my team will work harder to rebuild public confidence.”

Lam apologized for plunging the city into major upheaval, saying she had heard the people “loud and clear” and would try to rebuild trust.

But some protest organizers and opposition Democrats said Lam remained tone-deaf to public demands, namely that she state categorically a retraction of the bill, step down immediately and pledge not to prosecute any protesters on rioting charges.

“Carrie Lam is continuing to lie,” said Jimmy Sham, the convener of the Civil Human Rights Front. “We hope the people of Hong Kong can unite with us … to keep working hard to withdraw the evil law,” he told reporters.

Alvin Yeung, a Democratic lawmaker, said Lam had failed again to lower the political temperature in the city of seven million.

“Hong Kong will not accept this,” he said.

Lam’s climb-down, with the approval of China’s Communist Party leaders, was the biggest policy reversal since 1997 and presented a new challenge for Chinese President Xi Jinping who has ruled with an iron fist since taking power in 2012.

Since the proposed amendments to the Fugitives Offenders’ Ordinance were first put to the legislature in February, Lam has repeatedly rebuffed concerns voiced in many quarters, including business groups, lawyers, judges, and foreign governments against the bill.

Critics say the bill would undermine Hong Kong’s independent judiciary and rule of law, guaranteed by the “one country, two systems” formula under which Hong Kong returned to China, by extending China’s reach into the city and allowing individuals to be arbitrarily sent back to China where they couldn’t be guaranteed a fair trial.

Chinese courts are ultimately controlled by the Communist Party.

Lam issued an apology on Sunday night through a written government statement that many people said lacked sincerity. It failed to pacify many marchers who said they no longer trusted her and doubted her ability to govern.

Lam, a career civil-servant known as “the fighter” for her straight-shooting and tough leadership style, took office two years ago pledging to heal a divided society. Some observers say she is unlikely to step down immediately but any longer-term political ambitions she may have harbored are now all but dead.

(Reporting by Clare Jim, Noah Sin, Twinnie Siu, Anne Marie Roantree and Hong Kong newsroom; Writing by James Pomfret; Editing by Nick Macfie)

Don’t open ‘Pandora’s Box’ in Middle East, China warns

FILE PHOTO: Chinese Foreign Minister Wang Yi attends a news conference with Cuban Foreign Minister Bruno Rodriguez (not pictured) at Diaoyutai state guesthouse in Beijing, China May 29, 2019. REUTERS/Florence Lo

By Ben Blanchard

BEIJING (Reuters) – The Chinese government’s top diplomat warned on Tuesday that the world should not open a “Pandora’s Box” in the Middle East, as he denounced U.S. pressure on Iran and called on it not to drop out of a landmark nuclear deal.

Fears of a confrontation between Iran and the United States have mounted since last Thursday when two oil tankers were attacked in the Gulf of Oman.

The United States blamed Iran for the attacks, more than a year after President Donald Trump withdrew from a 2015 Iran nuclear deal.

Iran denied involvement in the tanker attacks and said on Monday it would soon breach limits on how much enriched uranium it can stockpile under the deal, which had sought to limit its nuclear capabilities.

Acting U.S. Defense Secretary Patrick Shanahan announced on the same day the deployment of about 1,000 more troops to the Middle East for what he said were defensive purposes, citing concerns about a threat from Iran.

Speaking in Beijing after meeting Syria’s foreign minister, Chinese State Councillor Wang Yi said the United States should not use “extreme pressure” to resolve issues with Iran.

Wang told reporters that China was “of course, very concerned” about the situation in the Gulf and with Iran, and called on all sides to ease tension and not head towards a clash.

“We call on all sides to remain rational and exercise restraint, and not take any escalatory actions that irritate regional tensions, and not open a Pandora’s box,” Wang said.

“In particular, the U.S. side should alter its extreme pressure methods,” Wang said.

“Any unilateral behavior has no basis in international law. Not only will it not resolve the problem, it will only create an even greater crisis.”

Wang also said that the Iran nuclear deal was the only feasible way to resolve its nuclear issue, and he urged Iran to be prudent.

“We understand that relevant parties may have different concerns but first of all the comprehensive nuclear deal should be properly implemented,” he added. “We hope that Iran is cautious with its decision-making and not lightly abandon this agreement.”

At the same time, China hopes other parties respect Iran’s legitimate lawful rights and interests, Wang said.

China and Iran have close energy ties, and China has been angered by U.S. threats against countries and companies that violate U.S. sanctions by importing Iranian oil, including Chinese firms.

China has had to walk a fine line as it has also been cultivating relations with Iran’s regional rival, Saudi Arabia, the Asian giant’s top oil supplier.

Iran’s foreign minister has visited China twice this year already. Saudi Arabia’s crown prince has also visited Beijing this year.

(Reporting by Ben Blanchard; Writing by Se Young Lee and Michael Martina; Editing by Clarence Fernandez, Robert Birsel)