Hong Kong Closes Its Trade Office in Democratic Taiwan

The Hong Kong Economic, Trade and Cultural Office (Taiwan) 'temporarily' suspends operations amid ongoing tensions over China's territorial ambitions.

Hong Kong Closes Its Trade Office in Democratic Taiwan

Authorities in Hong Kong have shut down the city's representative office on the democratic island of Taiwan, saying the move isn't linked to the recent surge of COVID-19 cases there.

The Hong Kong Economic, Trade and Cultural Office (Taiwan) (HKETCO) temporarily suspended operations on Tuesday, the government said in a statement.

"The Government of the Hong Kong Special Administrative Region will continue to handle general enquiries and requests for assistance made by Hong Kong residents in Taiwan, as well as provide Taiwan residents with information related to Hong Kong, through the hotline services of 1823 and 1868, and the GovHK website," it said.

A Hong Kong government spokesperson told RFA on Tuesday: "This has nothing to do with the current outbreak in Taiwan," before declining to comment further.

The move, which comes as China's ruling Communist Party (CCP) seeks to isolate Taiwan diplomatically, has sparked fears that Taiwan’s representative office in Hong Kong may soon face the same fate.

The office has 12 staff, four of whom were sent from Hong Kong, and eight of whom are Taiwan nationals.

Taiwan's Mainland Affairs Council (MAC) has said that the Hong Kong authorities have yet to clarify what will happen to the eight Taiwanese officials currently based in Hong Kong after their visas expire at the end of the year.

The Taipei Economic and Cultural Office (TECO) in Hong Kong also has 55 local staff, and has been unable to obtain a visa for newly appointed chief.

A unilateral decision

MAC spokesman Chiu Chui-cheng told Taiwan's Legislative Yuan on May 10 that the office had applied, but has yet to receive a response from the immigration authorities.

Chiu told RFA on Tuesday: "The Hong Kong office in Taiwan ... has been in operation for many years. Today, the Hong Kong government unilaterally made this decision. We regret this."

"Regardless of the reason for the Hong Kong government's decision to temporarily suspend the operation of the Taiwan office, we respect it," he added.

Taiwan’s Central News Agency quoted Hong Kong sources as saying that the reason for the suspension of the Hong Kong office in Taiwan was that the head of the office had also been unable to get a work visa from the Taiwan authorities.

But another source said the office had never replaced its chief representative in Taiwan after their visa expired, nor had it applied for work permits for their replacement.

Meanwhile, Hong Kong has withheld a visa to TECO's new head, Lu Chang-shui, since 2018, amid heightened saber-rattling from China following the landslide election victory of Democratic Progressive Party (DPP) president Tsai Ing-wen.

TECO-Hong Kong, which is run by the MAC, was set up in July 2011 during a period of closer ties between Taiwan and Beijing.

Taiwan has never been ruled by the CCP, nor has it ever formed part of the People's Republic of China, but Beijing has refused to enter government-to-government talks with Taipei, while repeatedly threatening to use military force to annex the country.

Former TECO-Hong Kong chief Kao Ming-tsun and three other officials were forced to return to Taiwan in 2020 after Hong Kong refused to renew their visas.

They were reportedly denied visas after refusing to sign an affidavit recognizing Beijing's territorial ambitions in Taiwan.

Political commentator Sang Pu said the main question in everyone's mind is what will now be the fate of the Taiwan office in Hong Kong.

'Gone in no time'

"Everyone knows that the Taiwan offices in Hong Kong are basically waiting for their Taiwanese employees' visas to expire, after which point they will be gone in no time," Sang told RFA.

"There is no way for them to keep operating, because they won't acknowledge [Beijing's claim on Taiwan]," he said.

"Will that process now be accelerated? It seems that there is now a higher risk of that happening," he said.

Declining ties between the two economies prompt questions over future trading patterns.

Taiwan is currently Hong Kong's second largest trading partner, and Hong Kong is Taiwan's fourth largest trading partner.

Bilateral trade grew from more than H.K.$410 billion in 2019 to H.K.$500 billion in 2020, an increase of 20.4 percent.

Hong Kong is also an important mid-point for trade between Taiwan and mainland China, with entrepot trade topping H.K.$420 billion in 2020, 80 percent of which is electronic parts and appliances, including integrated circuits, diodes, transistors, and other semiconductor devices being exported from Taiwan for China.

Chiu Jyun-rong, economics professor at Taiwan's National Central University, said Chinese factories could experience some difficulty in obtaining parts and components in the face of worsening bilateral trade ties.

"When it comes to electronic components, Taiwan's supply chain won't be so badly affected," Chiu said. "But I expect the impact on China will be bigger."

Reported by Man Hoi Yan and Chung Yut-yiu for RFA's Cantonese and Mandarin Services. Translated and edited by Luisetta Mudie.

Source : Radio Free Asia More   

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Chinese Agriculture Mogul Sun Dawu Could Face 25 Years in Jail: Lawyers

The ruling Chinese Communist Party (CCP) is taking a harder line with powerful private corporations and their wealthy founders.

Chinese Agriculture Mogul Sun Dawu Could Face 25 Years in Jail: Lawyers

Authorities in China are pushing for a jail term of 25 years for outspoken billionaire Sun Dawu, who is currently detained on suspicion of a slew of charges including "picking quarrels and stirring up trouble," a charge often used to target peaceful critics of the ruling Chinese Communist Party (CCP).

Sun, who founded an agriculture business in the northern city of Baoding, once presided over a company of some 9,000 employees, who were housed in a purpose-built town and offered schools, free health care, and sports facilities.

He was detained in April 2021 alongside 20 Dawu Agricultural and Animal Husbandry Group employees, some of whom are members of his family. Company assets have been seized by local officials.

Sun, 67, currently faces eight criminal charges including "illegal mining" and "picking quarrels and stirring up trouble."

Sun's lawyers say the decision to crack down on Sun and the Dawu group was likely made by high-ranking government officials in the northern province of Hebei.

His defense team are currently in a pretrial meeting with prosecutors from the Gaobeidian People's Court in Hebei, who said they will be pushing for a 25-year jail term for Sun.

His eldest son and Dawu Group chairman Sun Meng has been advised to plead guilty in return for a 16-year sentence, or face a 20-year jail term.

Sun's brother Sun Zhihua was advised to plead guilty in return for an 11-year sentence, or face a 14-year jail term, lawyers told RFA.

"The plan is for the pretrial meeting to go on for five days, with every defendant involved," a member of the defense team who asked to remain anonymous said.

"The judiciary and the local government are very keen to expedite this case."

Threats of long prison terms

Dawu Group lawyer Zheng Chengyue said Sun's family members have been dragged in by the authorities in a bid to obtain a guilty plea from him.

"They will get lighter jail terms if they confess and plead guilty, and heavier sentences if they don't; that's the deal," Zheng said.

"Officials want to get the case to trial as soon as possible ... although they have yet to issue a trial date," he said. "Sun's two sons, their wives, and two younger brothers are all in detention."

A defense team attorney surnamed Chen said the crackdown on Sun's business empire had been ordered by a high-ranking provincial leader in Hebei, under the patronage of a high-ranking official in Beijing, meaning that heavier sentences are far more likely.

"During the investigation phase of this case, the third-level public prosecutors at provincial level in Hebei were already intervening," Chen said.

"We are not entirely sure if this was ordered in Beijing, but the speed with which posts about the case have been deleted and social media accounts shut down suggest some involvement from Beijing," he said.

Calls to the Gaobeidian People's Court and to the Hebei Provincial People's High Court rang unanswered during office hours on May 17.

Several Dawu Group employees contacted by RFA on the same day declined to comment, indicating strong official pressure not to talk to the media.

Outspoken political journalist Gao Yu, who is acquainted with Sun, said the case seemed to be related to a physical altercation, but that the authorities have ensured that the charges also settle some older accounts with Sun.

"This is mostly about a land dispute between the Dawu Group and this state-owned farm," Gao said. "This should be a regular police matter, but it looks as if the authorities are bringing up some issues from the past that they had previously let slide."

An FAQ released in April by Sun's legal team said his detention had come after a land dispute with Xushui State Farm in Hebei's Langwuzhuang village, during which some buildings belonging to the Dawu Group had been demolished.

Most of the charges against Sun and his fellow executives are linked to the clashes that ensued.

Pressure to sell

The CCP has stepped up pressure in recent months on Jack Ma's Alibaba group to sell off its media assets including the Hong Kong-based South China Morning Post (SCMP) newspaper, according to media reports in March 2021.

Officials have been in talks with the company since last year, amid an ongoing clampdown on Alibaba founder Jack Ma's power and influence that saw Beijing pull the plug on a planned U.S.$35 billion initial public offering (IPO) of shares in his financial affiliate Ant Group.

Central government investigators set up camp in Alibaba headquarters in November 2020, according to industry sources, and its operations are under review by multiple state agencies.

The Wall Street Journal has also reported that the government is asking Alibaba to offload a number of media assets, including online news sites, newspapers, television production companies, social media, and advertising businesses.

While Ma was initially lionized by state media as a loyal entrepreneur and billionaire, his huge wealth and power are increasingly being seen as a threat to CCP rule, analysts say.

His criticism of financial regulation in China and Alibaba's lightning-fast censorship of content referencing a scandal surrounding one of the company's executives are seen by many in Beijing as a threat to CCP authority.

CCP general secretary Xi Jinping unveiled plans in October 2020 to move China to a state-controlled, "circular" economy based on domestic demand, and away from the export-based model that has fueled rapid growth since 1979, when late supreme leader Deng Xiaoping ushered in four decades of market-based economic policy.

Analysts have said there is a widespread expectation that Xi will move to change the current system of property ownership.

Reported by Xiaoshan Huang, Chingman and Jia Ao for RFA's Mandarin and Cantonese Services. Translated and edited by Luisetta Mudie.

Source : Radio Free Asia More   

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