The message from US President Joe Biden sent shudders through Wall Street and then financial markets around the world – “Beware of Hong Kong.”
Thousands of American companies have looked to Hong Kong as a footstep into the Chinese market. Even CNN has its main Asia/Pacific operations there.
Over recent years, media companies, including Australia’s ABC and Nine newspapers have found their journalists in trouble for stepping foot in China.
THE FUTURE OF HONG KONG
Now, in executive offices across Manhattan, the reality is starting to bite. The question is – how much longer will Hong Kong be a safe place for western companies to do business?
And for the people of Hong Kong – what happens next?
As China tightens its grip on the territory’s legal and financial systems, what will that mean for their long-held ambitions for expanding in the world’s second-largest economy and its market of 1.4 billion people?
A NEW WAY OF LIFE
Banks are now used to the shifting landscape in Hong Kong. While Hong Kong has felt like an extension of London or New York, tensions have flared between Beijing as western countries. The 50 year deal signed between the UK and China during the landmark handover has almost been thrown out.
For banks, the city isn’t just a staging area to China, but also a valuable market in itself.
Joe Biden’s warning was less about the new reality for Hong Kong, but more about the ongoing battle between China and the US for global supremacy. In this race, it seems, there can only be one winner.
For many companies in western countries, the China conundrum focuses on theyr reliance on trade, tourism and local customs. But for others, their presence in Hong Kong is no longer a safe bet. Many companies are looking to Seoul or Singapore as a potential new Asian headquarters.
HING KONG RESPONDS
Hong Kong has hit out at the US President.
Biden’s advisory is “totally ridiculous and unfounded fear-mongering,” a spokesman for the territory said in a statement. “The main victims of this latest fallout will sadly be those U.S. businesses and U.S. citizens who have taken Hong Kong as their home.”
The United States imposed sanctions on seven Chinese officials over Beijing’s crackdown on democracy in Hong Kong, Washington’s latest effort to hold China accountable for what it calls an erosion of rule of law in the former British colony.
A spokesperson for the Commissioner of China’s Ministry of Foreign Affairs in Hong Kong in a statement late on Friday strongly condemned the U.S. actions, saying they were blatant interference in Hong Kong and China’s internal affairs.
“(U.S.) worries about Hong Kong’s business environment is fake; its attempt to destroy Hong Kong’s prosperity and stability, endanger China’s national security, and hamper China’s development is real,” he said in the statement.
A Hong Kong government spokesman says Washington has repeatedly attempted to slander the legislation over the last year.
NSW Premier Chris Minns condemned a recent anti-Semitic attack in Sydney’s eastern suburbs, where cars were set on fire and properties were vandalised with anti-Israel graffiti.
Emergency services received reports of a car fire on Magney Street in Woollahra early Wednesday morning. Fire & Rescue NSW extinguished the fire, but multiple cars and buildings suffered vandalism.
Graffiti with messages like “Kill Israel” was found on walls. A crime scene has been established, and an investigation is underway. Police are looking to speak with two suspects aged 15 to 20, who were in the area at the time of the incident.
It’s just out of control!
Days after firebombing of Synagogue in Melbourne, now more #antisemitism in #Australia, this time in my former hometown of Sydney, with cars set alight and multiple homes vandalised with anti-Israel graffiti, in the strongly Jewish suburb of Woollahra. pic.twitter.com/gCdCrlSlXU
Minns described the attack as “shocking” and stated, “This is not the Sydney we want.” He emphasized that such racist acts aimed at dividing the community would not succeed.
He plans to consult with police about the investigation, assuring the public that those responsible will face justice.
NSW Health Minister Ryan Park also denounced the incident, calling it offensive and concerning.
It follows a similar act of vandalism in November, where cars were spray-painted with phrases like “f**k Israel.” Various buildings, including the Chiswick restaurant, were also targeted in that incident.
A 26-year-old man, Luigi Mangione, is fighting extradition to New York to face murder charges for the shooting of UnitedHealth executive Brian Thompson.
Mangione was arrested in Pennsylvania after a five-day manhunt and denied bail for the second time.
During a court appearance, he made a statement directed at reporters, though its meaning was unclear.
Legal experts believe Mangione’s fight against extradition could prolong the process, but success is unlikely.
Authorities are investigating whether he acted alone or had assistance leading up to the shooting.
Mangione was recognized at a McDonald’s by an employee and was found with a firearm, clothing, and fake IDs matching the shooter’s description.
Weapon possession
He has been charged with gun and forgery offenses in Pennsylvania, in addition to murder and weapon possession charges in New York.
Investigators are still determining the motive behind Thompson’s targeted killing. It was revealed that Mangione had chronic back pain and previously worked as a data engineer.
His family expressed shock and devastation over his arrest and offered condolences to Thompson’s family.
Thompson, a father of two, had been the CEO of UnitedHealth’s insurance unit since 2021 and was in New York for a company event. The incident has heightened frustrations concerning healthcare access and insurance issues in the U.S.
Rupert Murdoch’s attempt to change the family trust to consolidate control under his son Lachlan has been rejected by a Nevada commissioner.
The ruling, made by Commissioner Edmund J. Gorman Jr., stated that Murdoch and Lachlan acted in “bad faith” while trying to amend the irrevocable trust, which divides control equally among Murdoch’s four oldest children.
The 96-page opinion characterised the plan as a “carefully crafted charade” intended to secure Lachlan’s executive roles unconditionally.
Murdoch’s lawyer expressed disappointment and plans to appeal the ruling.
FILE PHOTO: Media mogul Rupert Murdoch poses for a photograph with his sons Lachlan and James in London.
Media empire
This dispute is critical as it affects the future control of Murdoch’s media empire, which includes Fox News and other major outlets.
While the intention was not to diminish financial stakes, the ruling reflects deep family tensions, especially given differing political views among the siblings.
The commissioner noted Lachlan initiated the proposed changes, created a plan dubbed “Project Family Harmony,” and labeled James as a “troublesome beneficiary.”
Despite Lachlan and Rupert’s efforts, the attempt to marginalise James was deemed insufficiently justified by the court.
Murdoch’s family trust, established in 2006, retains his control until his death, and includes provisions allowing amendments.
However, the commissioner found that Murdoch and Lachlan’s actions were not supporting their siblings’ best interests.
The ruling is not final and may be contested further in court.