The Wall Street Journal - 17.08.2019 - 18.08.2019

(Sean Pound) #1

A8| Saturday/Sunday, August 17 - 18, 2019 ** THE WALL STREET JOURNAL.**


commutes by keeping subway
trains in stations and blocking
roads. Protesters have shifted
tactics in recent weeks, some-
times gathering in large num-
bers rapidly or regrouping in
different parts of the city, con-
founding police and catching
uninvolved citizens off guard.
Julie Magno, a 36-year-old
mother of three who works at
a tech startup, said she has
been relying on co-workers to
keep her apprised of which ar-
eas to avoid. She said they of-
ten send her WhatsApp mes-
sages with information they
have translated from Chinese
social-media posts and articles
containing details about where
protests could take place.
Earlier this week, when Ms.
Magno learned about an air-
port sit-in, she contacted her
17-year-old daughter and
asked her to stay away from a
mall in Tung Chung, a neigh-
borhood near their home that
is also close to the airport.

Chester Chan, an invest-
ment banker at a Chinese
company, said he has been
leaving for work half an hour
early in case he encounters
delays during his 20-minute
commute. He monitors news
on television and his iPads,
sometimes watching live feeds
of protests from multiple
channels concurrently.
Mr. Chan said he used to
take his toddler to Hong
Kong’s Disneyland about once
a month, but has stopped do-
ing so even though the theme
park has been less crowded
since the protests began.
On Facebook, a Hong Kong
parents group has been
flooded with discussions. Indi-
viduals have shared advice for
what people should do if they
accidentally inhale tear gas,
such as rinsing their eyes and
faces with saline solutions and
turning off air conditioners.
Ms. Law, a 46-year-old who
lives with her husband and

three children in Hong Kong’s
New Territories, said she
keeps in close touch with her
teenage daughter when she
goes out at night.
“I’d message her every hour
and she just sends a quick
emoji back,” said Ms. Law. She
also monitors her daughter’s
whereabouts using a map on
the Snapchat app.
Charlotte Yu, a 19-year-old
college student, returned to
Hong Kong on Wednesday
from London, where she is
studying. She said her parents
told her not to go out in black
or white clothing. Most pro-
testers have been donning all-
black, while white has become
the color of choice for the pro-
establishment camp after men
in white T-shirts attacked peo-
ple clad in black in a subway
station last month.
Lavinia Kar and her 7-year-
old son took part in a few of
the earlier peaceful marches,
but she now goes alone to le-

gal protests. The 42-year-old
said she tempers what she
says in public about politics.
Hui Wan Fung, a 31-year-old
Singaporean who works in
public relations, said he and
his wife have cut back on date
nights. “We cook at home
more, and we catch up with
friends less now,” he said.
Mr. Papworth, the British
national whose wife and
daughter accidentally found
themselves at a protest site
last month, said his family has
tried to stick with their usual
routines, but they are vigilant
about their surroundings.
Last Sunday, he took his
daughter to meet “Grandma
Wong,” an elderly woman who
regularly shows up at protests
waving a Union Jack flag.
“She’s witnessing history in
the making,” he said of his
daughter, who is a Hong Kong
citizen, adding it is important
for her to remember this pe-
riod for years to come.

Cathay Pacific
Replaces Its CEO

Cathay Pacific Airways
Ltd.’s chief executive resigned
after the airline, Hong Kong’s
flagship carrier, came under fire
from Beijing over its employees
joining the antigovernment pro-
tests that have rocked the city.
Rupert Hogg, who had been

CEO since 2017, resigned “to
take responsibility as a leader
of the company in view of re-
cent events,” the carrier said
Friday. Paul Loo, Cathay’s chief
customer and commercial offi-
cer, also stepped down.
“There is no doubt that our
reputation and brand are under
immense pressure,” Mr. Hogg
said in an internal memo seen
by The Wall Street Journal.
The carrier said Mr. Hogg’s

successor is Augustus Tang Kin
Wing, who is a representative
of the Swire Group, the parent
company of Cathay’s largest
shareholder.
The airline has been em-
broiled in controversy after the
participation of some of its em-
ployees in the Hong Kong pro-
tests sparked a furor in main-
land China, one of Cathay’s
biggest markets, including calls
for a boycott of the carrier.

Early in the week, Cathay
shares touched their lowest
level in more than a decade as
protests at Hong Kong’s airport
led to the cancellation of flights.
In an email sent to staff
Monday, Mr. Hogg warned of dis-
ciplinary consequences for em-
ployees who supported or partic-
ipated in illegal protests. Just a
week earlier, the airline had
taken a more tolerant stance.
—Natasha Khan

WORLD NEWS


Claire Law tracks her
daughter’s location in Hong
Kong using a map on the
Snapchat app and messages
her hourly. Paige
Macgregor and her family
have stopped taking the sub-
way and buses. Hui Wan Fung
and his wife are going out less.
More than two months of
marches, demonstrations and
sit-ins in one of Asia’s most
densely populated cities are
forcing everyday people to
change their routines and de-
velop contingency plans to ac-
commodate new risks of vio-
lent protests and police action.
Hong Kong traditionally has
had a low crime rate, a highly
efficient public transportation
system and a vibrant night
scene. Since early June, it has
been racked by civil distur-
bances each weekend. What
began as large-scale marches
against a bill that would have
allowed extradition to main-
land China has mutated into
street battles and broader pro-
tester demands for democratic
reforms. Police have fired tear
gas liberally in residential
neighborhoods, shopping dis-
tricts and subway stations,
disrupting businesses and at
times injuring passersby.
On a Sunday evening last
month, Pierre Papworth was
waiting for his wife and
daughter to return from a trip
to mainland China when he re-
ceived a frantic text message.
The pair had emerged from a
subway station in Causeway
Bay, a busy shopping district
near their home, and found
themselves caught in a clash
between protesters and police.
“My wife was terrified,”
said Mr. Papworth, a 47-year-
old British citizen who works
in the toy industry and has
lived in Hong Kong for 17
years. He said the pair tried to
stay close to the police, and
his 10-year-old daughter
dodged a hair dryer inadver-
tently flung in her direction.
They reached home safely
after walking for 15 minutes.
But since the incident, Mr. Pap-
worth said he has mapped a
route home avoiding the main
thoroughfare where protesters
have previously gathered.
The weekend protests have
been peppered by weekday
demonstrations and sit-ins
that have delayed or disrupted

BYLUCYCRAYMER
ANDFRANCESYOON

Unrest Alters Life in Hong Kong


Families share tips on
handling tear gas and
transit disruptions as
clashes upset routines

ANTHONY KWAN/GETTY IMAGES
Residents are finding ways to adapt after more than two months of civil disturbances in the typically efficient, low-crime city.

Police shocked the city last
weekend with fierce baton
charges and new tactics, in-
cluding disguising officers as
demonstrators to make sur-
prise arrests.
Protesters then turned pub-
lic opinion against themselves
Tuesday night by beating and
tying up two men from main-
land China in a bout of mob
justice at the airport.
Meanwhile, Chinese para-
military police and armored
personnel carriers massed
across the border from Hong
Kong in what the Global
Times, a state-run tabloid,
called “a clear warning to the
Hong Kong rioters.”
The events left both sides
drained. Friday brought a
third day of relative calm be-
fore another mass rally
planned for Sunday.
On Friday evening, thou-
sandsofprotestersstageda
peaceful demonstration aimed
at getting attention in the U.S.
and U.K. “We have to draw the
attention of politicians like

[President] Trump and [House
Speaker Nancy] Pelosi,” said a
banker waving an American
flag. “It’s a moral imperative
to assert pressure against Xi
Jinping.”
A 26-year-old engineering
consultant noted that waving
the American flag could in-

spire support from U.S. Repub-
licans. He said, “We’re doing
things similar to the Founding
Fathers.”
China has suggested the
U.S. is pulling the strings in
the Hong Kong protests. But
the banker said: “If the U.S.
was behind our movement, it
would have succeeded a long
time ago.”

Teachers plan to rally Sat-
urday, and pro-democracy
group Demosisto is organizing
secondary schoolers to skip
classes on Mondays starting in
September.
Tycoons in Hong Kong are
under tremendous pressure
following the protests. Their
fortunes, rooted in property,
are at risk if the city’s status
as a financial and business
hub is eroded. They already
are suffering from stock-mar-
ket declines.
Beijing is leaning on these
corporate leaders to support
Hong Kong’s government and
push for a return to order. De-
murring could put their busi-
nesses at risk. China, for in-
stance, threatened to cut off
access to its airspace for Ca-
thay Pacific after Hong Kong’s
flag carrier condoned partici-
pation by its staff in the pro-
tests, and the airline’s chief
executive resigned Friday. But
complying could put them on
the wrong side of public opin-
ion in their hometown.

Hong Kong’s richest man
bought the full front pages of
many local newspapers Friday
morning to run a pair of ads
that cautioned protesters and
authorities against further vi-
olence.
One of the ads taken out by
Li Ka-shing—a 91-year-old ty-
coon with a net worth of $
billion, according to the
Bloomberg Billionaires Index—
was aimed at the Chinese gov-
ernment. It referenced a Tang
dynasty poem that calls on an
empress not to kill her own
children. The other, aimed at
protesters, called for an end to
violence and cautioned that
the best intentions can have
the worst outcomes.
The ads by a businessman
who made a fortune navigat-
ing the tricky politics of Hong
Kong and Beijing followed a
week of some of the worst in-
cidents of violence in more
than two months of demon-
strations.

BYELIBINDER Earlier this month, a senior
Chinese official in charge of
Hong Kong affairs warned a
gathering of the city’s elite in
Shenzhen that the central gov-
ernment wouldn’t hesitate to
intervene if the situation
worsened and leaned on them
to condemn the violence and
support the government.
Last weekend, the compa-
nies of property magnates Pe-
ter Woo; Li Ka-shing’s son and
heir to his empire, Victor Li;
Peter Lee; Raymond Kwok; and
Henry Cheng jointly called for
an end to the violence and a
restoration of order.
Theprotestsweresparked
by a bill that would allow ex-
traditions to China but have
swelled to embrace a broader
demand for more representa-
tive government.
If the violence doesn’t
abate, some business owners
say they are increasingly com-
ing to accept the idea that
some form of Chinese security
force may be dispatched to
Hong Kong to restore order.

Tycoon Warns Protesters, Beijing Over Violence


Lavinia Kar said she has stopped taking her young son to demonstrations. Pierre Papworth mapped a backup route home after he and his family encountered clashes.

NICOLE TUNG FOR THE WALL STREET JOURNAL


Li Ka-shing
made a
fortune
navigating the
tricky politics
of Hong Kong
and Beijing.

Thousands of pieces of Chi-
nese video-surveillance equip-
ment that have provoked na-
tional security concerns have
been listed for sale on an online
superstore catering to U.S. gov-
ernment agencies, despite a ban
that went into effect this week.
The listings are for cameras
and recording equipment
made by Hangzhou Hikvision
Digital Technology Co., 42%-
owned by the Chinese govern-
ment, and Dahua Technology
Co., a privately owned Chinese
surveillance-equipment maker,
The Wall Street Journal found.
Hikvision and Dahua don’t
directly sell their wares via the
online store, but their equip-
ment is available via indepen-
dent U.S. resellers that act as
middlemen. Listings of Chinese
equipment by these resellers
claim that the gear has been
made in the U.S. and Switzer-
land. Hikvision and Dahua say
they don’t manufacture equip-
ment in those countries.
The use of equipment made
by Hikvision on U.S. military
installations, police depart-
ments and embassies has
sparked concern about security
vulnerabilities in the equip-
ment that the Chinese govern-
ment might exploit.
Congress last year passed
legislation that prohibits fed-
eral government agencies from
buying equipment from Chi-
nese companies. The ban took
effect Tuesday. Even before
the explicit ban on purchases
from those companies, such
government buying wouldn’t
have been allowed because
China isn’t on a list of coun-
tries from which agencies are
allowed to buy items.

However, their equipment
finds its way onto the online
superstore through resellers
authorized to list goods there.
After agencies place orders,
distributors that work with
the resellers fulfill them.
Three days after the federal
ban took effect, about 1,
Dahua products remained for
sale on the portal, The Journal
found. However, a similar
number from Hikvision ap-
peared to have been taken
down Thursday. A few dozen
Dahua products disappeared
from the site between Tuesday
and Wednesday.
The General Services Admin-
istration, the federal agency
that oversees $66 billion of
government purchases, runs the
online marketplace, called GSA
Advantage, where the items re-
main for sale. “Chinese-made
items...should not be on GSA
Advantage, as there is no trade
act agreement with China,” a
GSA spokeswoman said.
She said the agency has an
automated process that re-
moves items that shouldn’t be
for sale. The GSA was working
to identify Hikvision and Da-
hua equipment listings after
the new ban took effect, she
said, and resellers had been
notified of items targeted for
review and removal.
Hikvision sends cease-and-
desist orders to resellers who
list their products on the GSA
site, a person close to the
company said. A Dahua
spokesman said the company
is investigating the issue.
The GSA spokeswoman said
the agency tries to prevent
Chinese equipment from ap-
pearing on the site, but said
the onus of making sure that
products listed for sale com-
plied with government rules
lay with resellers.
Jim Wrigglesworth, the vice
president of Wrigglesworth
Enterprises in Wilmington,
N.C., another company that of-
fered such Chinese equipment
for sale, said it lists more than
one million products on the
GSA site, so some errors were
possible. “We do our own spot
checks, but every so often one
gets up there,” he said.
The GSA spokeswoman said
no transactions involving
Hikvision or Dahua products
were made within the past
year.

BYASAFITCH

Chinese


Spy Gear


Offered for


Sale to U.S.


Equipment listed for
sale online has
sparked concerns
about security.
Free download pdf