Big Lychee, Various Sectors

Transit Jam goes to the Ombudsman’s Office HQ to view a document that would until recently have been available online. Everything is as difficult as you would expect – from booking ahead to negotiating the Shun Tak Centre to reading documents while staff linger outside the room. Almost as if they don’t want anyone to see their archives.

Asia Times on Apple’s boss and China…

…Cook sold Apple’s soul to China.

He deepened the company’s dependency on a regime that censors dissent, surveils its citizens, and threatens global security—all because the margins looked good.

He didn’t just outsource production. He outsourced principle. While Musk battled regulators and Zuckerberg sparred with Congress, Cook was quietly bending the knee to Beijing, deleting apps, filtering maps and making sure nothing upset the Politburo.

His legacy isn’t one of innovation or bravery—it’s of appeasement in pursuit of profit…

From Chinadiction, reviews of two books on Taiwan. One tries to clear up Formosa’s often-misunderstood past…

…the tribal histories that preceded and coexisted with the Dutch, the Spanish, the Ming refugees, the ascendant Qing Dynasty Manchus who semi-managed western coastal Taiwan until the arrival of the Japanese in 1895 – and after them the en-masse arrival of the defeated Chinese Nationalists (Kuomintang, or KMT) in 1949.

The other looks at the possibility of a war…

…despite all the rehearsals and incessant training, taking Taiwan is a toweringly tall order for an untested military such as China’s especially as modern warfare changes before our eyes. Hopefully, the best deterrence of all – as Xi continues to purge PLA generals, reportedly for corruption and “violating political discipline” – is China itself.

In Japan today, manufacturers sell more adult than baby diapers. As the population ages, some market segments will grow while others shrink; at best, the overall economic effect will likely be neutral. But, under orders to Do Something, desperate Hong Kong bureaucrats latch on to the possibility that an aging population could serve to boost the local economy. They were given a buzzword, and they are going to make sure their bosses hear it back…

The Working Group has proposed 30 measures in five areas, namely: boosting “silver consumption”, developing “silver industry”, promoting “quality assurance of silver products”, enhancing “silver financial and security arrangements”, and unleashing “silver productivity”. 

Among the detailed list of measures: ‘The exhibition industry will enhance silver economy elements in exhibitions’, plus a range of initiatives involving public-sector bodies facilitating things. Meanwhile, private-sector providers will – as in Japan – adapt to change and grab opportunities wherever they can without any government guidance. 

In fairness, the Deputy Chief Secretary more or less admits that there’s no point in the government expecting these ideas to generate additional GDP growth. The main hope is in getting more people in their 60s to continue working in a tightening labour market.

Joel Chan notes that the labour participation rate in Hong Kong was around 61% until 2019, since when it has declined to 56.8% – ‘the lowest since records began in 1985’.

HKFP reports that Hong Kong Chief Executive John Lee, answering questions from the press, implies that journalists ‘break the law and evade taxes’ and refers to the HK Journalists Association as some sort of enemy…

“Journalists or any other profession have no privilege to evade taxes,” Lee [said].

He also said a “real professional group” should improve the profession it belongs to instead of pressuring the government.

“Tolerating members who break the law and evade taxes while pressuring the government will only expose the group’s own maliciousness,” the chief executive said.

The tax authorities haven’t even concluded their audit process yet. And what sort of pressure is the HKJA applying?

Hong Kong’s tax department insists it ‘definitely does not’ audit for tax returns based on specific industry or background, even as it launches simultaneous investigations of independent news media outlets and their staff and their family members. HKFP points out that at least six such organizations  – ie most of them – have been audited, though…

In 2023–24, 1,802 audits were “processed” by the Inland Revenue Department whilst, as of 2024, there were over 1.46 million registered companies.

Some 3.2 million people are expected to pass through Hong Kong borders over the Tuen Ng May 31-June 2 period. (RTHK style? The line with Shenzhen is a ‘boundary’, but if you include air and sea movements, you can call them ‘borders’.) The majority of these will presumably be people making two crossings over the weekend. Even so, it seems around a tenth of the Hong Kong population will get out of town while a similar number will flood in. 

As a witty commenter put it recently, Hongkongers will leave town to spend their money elsewhere in order to avoid all the Mainlanders who come here and don’t spend any money.

From the Standard…

A private housing estate in North Point has sparked controversy after issuing a notice prohibiting residents from walking bare-chested in common corridors, warning that such behavior could violate Hong Kong’s criminal laws.

The estate management posted the notice following complaints about shirtless residents in shared spaces while taking out trash or handling personal items. While acknowledging the hot weather, the notice reminded residents that corridors are public areas and urged them to “wear shirts when passing through.”

It cited Section 148 of the Crimes Ordinance (Cap. 200), which criminalizes “indecent exposure” in public places without lawful authority, punishable by up to HK$2,000 in fines or six months’ imprisonment.

Well at least they didn’t mention national security.

The FT reports on Singaporeans falling for ‘job scams, romance scams, government official impersonation scams’ and other fraud. Known victims (many do not go to the police) lost over $1 billion last year… 

This is a small part of a global criminal enterprise worth an estimated $1tn, but Singaporeans, affluent, digitally advanced and compliant, are particularly vulnerable to these scams. As one person involved in the recovery of assets put it: “They are rich and naive”.

All of which sounds familiar to those of us in Hong Kong, where cross-border movements of cash leave many people in possible violation of Mainland laws, and thus susceptible to being conned by fraudsters posing as law enforcement. But there is a unique twist in the Lion City…

…Scams have become so widespread that Singapore’s government has even discussed corporal punishment for offenders. “We believe in caning as a strong deterrent,” said Loretta Yuen, chair of the fraud committee at the Association of Banks in Singapore. “It’s a deterrent, but there is also a sense of revenge to it.”

Hordes of visitors swamp an area to take photos, causing serious inconvenience to local residents. Do the authorities take action, or do they welcome the influx as good for the economy?

If you are a family of brown barn owls at Kadoorie Farm, the answer is the former. The management of the wildlife facility announce…

Our role is to protect the bird and manage the visitors, and check for visitors that might be using laser pointers or playing owl sounds, all to take a great picture, but at the same time causing great disturbance to the birds. 

To protect the birds, unfortunately, we have decided to temporarily close the road and prevent this disturbance to the young Brown Wood Owl and his parents. While we understand that this may cause dissatisfaction to some photographers, we hope that everyone understands that the well-being of the birds comes first, and we appreciate your cooperation.

If you are a human trying to negotiate the streets through your overcrowded Hong Kong tourism hotspot neighbourhood – tough luck. Your well-being is not a consideration.

The Hong Kong tax authorities’ mass audits of independent media organizations and journalists get attention in the international press – as you would expect. From the Guardian…

Hong Kong authorities have targeted journalists and media outlets with what are supposed to be “random” tax audits, in a move the industry union says adds pressure to waning press freedoms.

The head of the Hong Kong Journalists Association, Selina Cheng, detailed what she said were “strange” and “unreasonable” accusations by Hong Kong’s inland revenue department. Requests or audits were made against the association, at least eight independent media outlets, and at least 20 journalists and their family members, including Cheng and her parents, she said at a press conference on Wednesday.

Cheng said the tax department had told one journalist that they had to pay a profit tax for a company they did not run, and had cited a registration number that did not exist. Another company was told it was being audited for profits made during the year before it was even founded. One journalist had their income “assessed” as double the amount they had actually earned, and was issued a demand for prepayment of tax on the “under-reported” income.

…Citing IRD figures, [HKFP founder Tom] Grundy said the chance of being “randomly” selected for an IRD audit was about 0.123%. “The probability drops much further when considering almost all independent media outlets were coincidentally, simultaneously selected.”

From RFA…

The association expressed concern that this could further reduce the operating space for small-scale and independent news outlets in a city once known for its freewheeling media. It called for the revenue department to stop audits without clear justification and to publicly explain the rationale for what it sees as a potentially coordinated crackdown on independent journalism.

“For small outlets like ours, this is a serious reputational attack. Being accused of tax evasion is defamation. The authorities’ frequent scrutiny of journalists and media organizations creates anxiety and casts a shadow over press freedom in Hong Kong,” Selina Cheng, the association’s chair, told a news conference.

And NYT…

Thomas Kellogg, the executive director of the Georgetown Center for Asian Law, said that administrative harassment can be an effective way to control the remaining outlets that have managed not to cross red lines that could put them at risk for prosecution under national security or sedition laws. Such reviews “serve as a reminder to media outlets that they have to watch what they say, and that the government has ways to hit back at them over reporting it doesn’t like,” he said

….Last year, the authorities investigated what [HKFP] described as “false complaints,” including claims that a hot sauce it sold as a fund-raiser had come from an unlicensed food factory and that Mr. Grundy’s pet dog lacked a license and rabies shot. Both cases were closed after he submitted evidence to the contrary, Mr. Grundy said.

If you think journalists’ salaries are hardly high enough to warrant tax audits, wait until you find out how much artists make. The Standard reports…

Patriotism must be at the core of artistic practice in the new era to solidify Hongkongers’ national identity and promote the preservation of Chinese culture, Zheng Yanxiong, director of the central government’s liaison office in Hong Kong, said.

Speaking at the opening of the Guangdong Art Centennial Exhibition Hong Kong at the Hong Kong Convention and Exhibition Centre on Thursday, Zheng emphasized that art should serve as a vehicle for fostering patriotism and a sense of belonging to both the nation and Hong Kong. 

He called for greater innovation in artistic creation and cultural production to advance Chinese culture while maintaining its traditional essence.

Hong Kong is becoming Asia’s ‘mansions firesales’ hub. Bloomberg reports that billionaires in the city are selling their luxury homes…

This week, a sea-view villa previously owned by wealthy businessman Chan Ping Che was listed by receivers for HK$430 million ($55 million). Meanwhile investment firm Gale Well Group Ltd.’s Chief Executive Officer Jacinto Tong sold his penthouse apartment for HK$138 million last month, according to land registry filings.

Chan, known as Hong Kong’s “King of Cassettes” for the source of his fortune, defaulted on a loan worth about HK$350 million in principal and interest from Fubon Bank Hong Kong Ltd. earlier this year, he said in a phone interview on Wednesday. Last month, receivers took over the mansion he and his family were living in since the 1980s.

So have they moved into a 450 sq ft place in City One Shatin? Sadly, the story omits this tantalizing detail. But it seems the billionaires assumed property prices would go up and up forever, and borrowed more than even they could manage…

“People often use leverage to purchase additional properties, amplifying returns when prices rise, but also magnifying losses when prices drop,” said Christopher So, a partner at PricewaterhouseCoopers LLP in Hong Kong. “As the market weakens, rental demand and yields also decrease, impacting cash flow for servicing debt and leading to rising rate of default.”

Or in plain English: they were greedy assholes.

Luxury home transactions have been improving since the last quarter of 2024, but prices aren’t reflecting the sentiment due to a surplus of distressed assets, according to a Savills report in March.

Presumably, by ‘improving’ the author means ‘rising’. When you have a ‘surplus of distressed assets’ the prices are probably reflecting the sentiment all too well.

Independent (ie non-pro-government) media in Hong Kong face tax audits and demands. From HKFP – which is among them…

Head of the HK Journalists Association Selina Cheng said at a press conference that at least six news outlets … had been receiving government tax demands since November 2023 as part of Inland Revenue Department (IRD) inspections.

Meanwhile, a total of 20 individuals linked to the independent media industry are also facing similar probes and tax demands, Cheng said: “Journalists in Hong Kong do not have a very high income. Other than having to pay these claims of taxes, they also need to spend money, time and energy to prove in reverse that they were innocent.”

…Cheng faces an IRD probe into her salary tax dating back to 2017-18 when she was a reporter with local outlet HK01. The IRD also inspected Cheng’s parents’ salary taxes, profit taxes and rates.

“I was earning a monthly salary of HK$18,000 at that time and IRD assessed my taxable income [to be] HK$231,000. But recently, IRD said my taxable income was HK$631,000, and requested to tax me for the ‘underreported’ HK$400,000,” Cheng said, adding that the IRD did not provide evidence as to why it suspected there had been more taxable income.

The SCMP adds…

Last June, Secretary for Security Chris Tang Ping-keung called the [HKJA] an organisation “with no recognition” and accused it of standing with the “black-clad violent mob” during the 2019 anti-government unrest.

Speaking of HK01, the outlet carries an op-ed pointing out what most of us know from our own travels – that a city that’s nice for its own residents to live in is by definition attractive to tourists. 

…The success of [Tokyo, Bangkok, London, Istanbul, etc] is not only due to their “tourist hotspots”, but because their urban planning, living culture and core stories together create an atmosphere that makes tourists feel that they can not only sightsee and check in, but also “live” in them.

…tourists are eager to experience real daily life, taking trams and eating in tea restaurants. Therefore, a city must be livable in order to retain tourists. The “Hong Kong flavor” cannot be represented by one or two tourist hotspots, but rather the city’s lifestyle culture, operating model, and a temperament from the inside out.

The ‘Working Group on Developing Tourist Hotspots’ unveils its list of ‘new experiences that are more in-depth and fascinating’ for visitors to Hong Kong. They include: tours of Lee Kum Kee and Yakult factories; the already-crowded area around Central’s Escalator; ‘exciting themed activities’ (crafts stalls) at Victoria Park; the already-popular Yau Ma Tei police station; ‘green tourism’ around four trails and mountains (inspired by the Four Trails movie); the already-crowded Kowloon City; and Disciplined Services’ museums. Plus the desperate-sounding Hung Hom railway freight yard and a pink trumpet tree garden. (The pink trumpet tree is native to South America and popular as a Japanese cherry blossom wannabe in cities around the world from California to India.)

Deputy Chief Secretary Cheuk Wing-hing says…

“The … hotspots span across the territory, underlining the concept of ‘tourism is everywhere in Hong Kong’. There are indoor and outdoor hotspots, locales for visits and explorations, as well as places for enjoying the ecology and scenery. They cater for travellers’ individual preferences, which can easily fit in different travelling routes for creating pleasant journeys. Hong Kong will gain in popularity and prosperity as the hotspots will bring economic benefits, boost consumption sentiment and stimulate the economy.”

As various commentators, even former Financial Secretary John Tsang, have pointed out, tourism does not account for a large part of Hong Kong’s GDP and is probably not worth trying to expand. This is especially so given that the costs in terms of overcrowding and inconvenience to residents seem to outweigh the possible benefits. So why this obsession with pushing up the numbers? Several reasons…

One clue here is in the phrase ‘tourism is everywhere in Hong Kong’. This was pushed by Mainland officials, so our local bureaucrats can’t not follow through – hence the formation of a dedicated Working Group..

Tourism essentially means more Mainlanders in town, which (as with talent visas) seems to be an unofficial policy aim.

It also offers the prospect of higher rents for retail and commercial property, key to the high land valuations Hong Kong bureaucrats yearn for.

More generally, Hong Kong has never recovered from Covid restrictions and the National Security clampdown, both of which reflect Beijing’s tightening control over the city. And now we also have Trump’s trade wars. The (unelected) government is under pressure to Do Something about the economy. And announcing measures to boost tourism is easy: you just pick some locations, and put up some signage – mission accomplished. Launching a new bio-tech industry is really difficult.

More on online archives removal…

Hong Kong’s ombudsman has defended the removal of years’ worth of records from its shelves, saying it may improve its website’s user experience…

…“I dare not comment as I am not an IT expert. But my colleagues mentioned that saving too much information will slow computers. The most important thing is that we have kept all information, and none of it will be deleted,” [Ombudsman Jack] Chan said.

Were they storing it all on 5.25-inch floppy disks?

An HKFP op-ed protests the deletion of Ombudsman’s Office online archives…

…the reports point out how departments have passed the buck, not taken responsibility, and how officials and citizens both exploit legislative loopholes. The issues not only annoy residents but also cause frustration, dissatisfaction, and disputes both among citizens and between citizens and government departments.  

From these reports, we can judge the extent to which government departments learn, improve, and become sensitive to problems previously ignored. Insofar as they do, these are good stories for Hong Kong. 

With only reports from 2023-24 onwards available, neither the public nor LegCo may be aware that some recent problems have long histories.

HKFP story quotes former secretary for the civil service Patrick Nip…

“Reports and surveys published by government bureaux and departments, public organisations, and independent commissions are important references,” he said in a Facebook comment replying to veteran journalist Lam Miu-yan’s post on the Ombudsman’s decision.

“Unless there are special reasons, they must be properly preserved and made easily accessible to the public,” Nip added.

RTHK (no stranger to wiping reminders of its former editorial independence) puts the official case…

The Office of The Ombudsman said on Monday that it has removed investigation reports that are “no longer up to date” from its website, saying that old reports could contain information that misleads the public.

In the statement, the Ombudsman said it reviews content on its website from time to time to ensure its accuracy and relevance, noting “only [reports] from the past three years” are being retained on its website following the latest update.

But also adds that several legislators are voicing disquiet over the move.

The Ombudsman issues a statement saying you can fax or email them to retrieve deleted material. (The Wayback Machine should also have copies of older material, if you can find them.)

What no-one is asking is what exactly the department might be trying to hide. As mentioned yesterday, the Transport Dept has also been reported as deleting embarrassing online records. 

One to watch: the Audit Commission, which also highlights government failures, still has all its reports since 1999 online. 

During my five-day absence, the Hong Kong government announced, passed and implemented new local national security/Article 23 laws. Blink and you would’ve missed it. The key part seems to be enabling Mainland NatSec authorities to directly take control of cases under ‘special’ circumstances. Much of the attention focused on the declaration of those authorities’ premises in Hong Kong – including four hotels – as ‘prohibited’ areas. Which again raises the question of how many of these officials there are here, and what they do all day.

Also while I was away: a proposal for something called the ‘Victoria Cove Area’. By ‘area’ we mean ‘hub-zone’, I presume. Sounds better than ‘the Kowloon Bay armpit’. As usual, it’s driven by the obsession with tourists. But a few of the ideas, like canoeing, are verging dangerously on being imaginative and, in theory, even fun. And then – uh-oh – you read that the project would be under the Urban Renewal Authority.

The CFHK on the introduction of the Hong Kong Judicial Sanctions Act in the US Senate…

The bill … would initiate a mandatory review of 45 individuals for targeted sanctions under existing U.S. laws … These individuals — officials, judges, and prosecutors at all levels — have weaponized the city’s legal system to punish pro-democracy activists, civil society leaders, journalists, and everyday citizens under the National Security Law and other repressive statutes.

Among the individuals named are the three judges who recently sentenced 45 pro-democracy leaders to prison terms ranging from three to 10 years: Johnny Chan Jong-herng, Andrew Chan Hing-wai, and Alex Lee Wan-tang. Also named is Anthony Chau Tin-hang, the lead prosecutor in many political cases related to the 2019 pro-democracy protests and a frequent denier of defendants’ bail requests, keeping dozens detained for over 1,000 days before conviction.

The HK government ‘strongly condemns US senators’ despicable attempt to intimidate HKSAR personnel safeguarding national security’…

“It is clear that safeguarding national security falls within the internal affairs of a sovereign jurisdiction, so the implementation of the Hong Kong National Security Law (HKNSL) is free from any intervention. However, those US politicians insist on turning a blind eye to all these facts, and even clamour for so-called ‘sanctions’ against the HKSAR personnel and judges who dutifully safeguard national security. The HKSAR despises any so-called ‘sanctions’ and shall never be intimidated…”

Transit Jam on the deletion of online archives by the Ombudsman’s Office and the Transport Dept.

A couple of BBC items… A story about an Australian’s five years in the Chinese prison system. And – well over a week old, but in case you missed it – a video on the rise of informants in today’s Hong Kong, including a pro-Beijing commentator who fears the emphasis on ‘patriots’ could lead to a sort of Cultural Revolution climate.

Speaking of which – a CMP interview with the Guardian’s Tania Branigan on how China still remembers the Cultural Revolution, and comparisons with the US under Trump…

A venomous mindset was, in a sense, key to the Cultural Revolution, it was all about the weaponization of division and hatred. When I was writing the book one thing that struck me was that Mao had to say, “Who are our enemies? Who are our friends?”

Inspection tour report… For Japan’s most boring city, Nagoya is well worth a visit. Probably several. It might not quite have a distinctive vibe like Kyoto or even Fukuoka, and it’s more low-rise and less intense than, say, Tokyo or Osaka (is it just me or are the Family Mart staff especially friendly?)

But it has its share of architecture (the City Archive stairs appear in TV series Tiger With Wings), bird-watching (wetlands/estuary viewing facilities), clusters of second-hand retro clothes stores and tasteless themed cafes, creepy religious groups’ HQs, covered shopping streets, wacky subway announcements, and all the other fun Japanese things. Including, of course, food: sushi, yakitori, eel, gyoza, takoyaki stands, etc, etc – at maybe a third to half the price you would pay in Hong Kong. Not too many tourists (OK, other tourists) either. Give or take (braver-than-average) Hongkongers. Trying horse sashimi for the first time (it’s good), I noticed the guy sitting just next to me at the counter was watching the racing at Happy Valley on his phone.

The 68-year-old father of ‘absconder’ Anna Kwok is denied bail on national security grounds. He was arrested last week for attempting to obtain funds form an insurance policy of his daughter’s…

[Chief Magistrate Victor] So said on Thursday that after hearing arguments from the prosecution and the defence and reviewing all documents, there were insufficient grounds to believe that Kwok Yin-sang would not continue to engage in activities endangering national security if he was granted bail.

Links to two statements from NGOs here. The (paywalled) Economist says…

The move marks a serious escalation by the Hong Kong authorities, under pressure from Beijing, to enforce complete political control over the territory. Last year they jailed a group of 45 prominent activists who stayed in the city, for between four and ten years. But this is the first time a family member of an exiled activist has been prosecuted. In 2023 the Hong Kong government placed a bounty on several campaigners abroad, including Ms Kwok, who now leads the Hong Kong Democracy Council in Washington, accusing them of colluding with foreign forces. That can carry a sentence of life in prison. There are now 19 “wanted” activists living in exile, who have a bounty on their head. The authorities have revoked the passports of Ms Kwok and 12 others.

Their family members have faced increasing harassment. Since January police have interrogated the families of at least five of the exiled activists, says Human Rights Watch (hrw), an ngo in New York. They raided the office of the Hong Kong Public Opinion Research Institute, an institution associated with Chung Kim-wah, a scholar now based in Britain, and confiscated HK$800,000 ($103,000) from the family of Ted Hui, a former lawmaker who lives in Australia, both for allegedly contravening national security.

And a cousin and cousin’s wife of activist Joe Tay – also overseas with a HK$1 million reward on him – are taken in for questioning…

Tay ran in the Canadian legislative elections last month as a member of the country’s Conservative Party. He emerged second in his district out of six candidates.

Victor So is busy these days. He sends a man to prison for a year for ‘knowingly publishing publications that had a seditious intention’ on Facebook posts…

Li was said to have shared news articles and photos on his Facebook account along with his commentary. His posts could be viewed publicly, but received very few responses, the court heard.

The former Citybus employee attacked the police in most of his posts, saying that the force had made “arbitrary arrests” and “used violence” to crack down on protesters during the 2019 anti-extradition bill unrest.

The defendant called the police “black cops” and said the Independent Police Complaints Council, which cleared the police force of any misconduct during the 2019 protests, had “condoned” what he described as “police brutality.”

Li criticised court rulings in protest-related cases, calling some judges “stupid” and accusing them of “framing” defendants on rioting charges. He said Hong Kong’s judicial system was “fucking broken,” adding that the city’s rule of law was “dead.”

Some questions… How many Hong Kong people agree with any/most/all of Li’s comments? Would he be in the clear if he had prefaced each post with the phrase ‘in my opinion’? Does it make a difference if a defendant challenges the prosecution to provide evidence of the (little-read) posts successfully inciting any hatred? Or is it a crime to utter such thoughts even in private where no-one hears or reads them?

If this doesn’t reduce the influx of Mainland tourists, nothing will: foreigners peering out of the deathly gloom of Central in the early hours.

Spending the coming week in Japan’s most boring city.