Hong Kong: Media Tycoon and Apple Daily Owner Jimmy Lai Arrested

Hong Kong police arrested media tycoon Jimmy Lai and raided the offices of his flagship newspaper, the highest-profile case yet against the city’s democracy activists under a national security law that has fueled U.S.-China tensions.

Lai was shown handcuffed as he was taken away by officers from his home on Monday morning. When a reporter asked Lai for his views on the arrest, he answered: “What views do I have? They want to arrest me.”

Apple Daily, which is under Lai’s media network Next Digital Ltd. and the biggest pro-democracy paper in Hong Kong, reported that nearly 200 officers were entering its offices. Police said on Facebook that they had obtained a court-issued search warrant to enter a building in Tseung Kwan O -- where Next Digital’s offices are located -- to investigate crimes endangering national security. They did not mention Apple Daily in the post.

Police said seven people ages 39 to 72 were arrested on suspicion of “breaches” of the security legislation, with offenses including collusion with a foreign country or external elements to endanger national security. An investigation is underway, they said, without naming any of the people.

Those arrested include Lai, his sons Ian and Timothy, Next Digital Chief Executive Cheung Kim Hung, Chief Operating Officer and Chief Financial Officer Royston Chow Tat Kuen and the Chief Executive of Next Animation Studio, Kith Ng, according to a police officer who asked not to be identified.

Research from the Chinese University of Hong Kong said last year that Apple Daily had the biggest market share in both print and online platforms among the city’s paid newspapers.

Police took away some 25 boxes of evidence for preliminary investigation, said Li Kwai-wah, senior superintendent of the police force’s national security department. He said the floor where the assignment and reporting desks are located was searched, as one of the people arrested had an office there.

Lai was shown being walked around the Apple Daily office in the Next Digital live feed, and said police had showed him the warrant.

Shares in Next Digital rose as much as 344% to HK$0.40 in afternoon trading on heavy volume, reversing a morning decline that saw them slide to the lowest level on record following reports of the arrests. The surge came after pro-democracy supporters took to social media and urged people to buy the company’s stock.

The security legislation, which bars subversion, secession, terrorism and collusion with foreign forces, has prompted fears among activists and foreign governments that it will be used to curtail basic freedoms.

“With the passage of the national security law, Beijing has launched a full-blown rectification of Hong Kong,” said Carl Minzner, a law professor at Fordham Law School and author of “End of an Era: How China’s Authoritarian Revival is Undermining Its Rise.” “The ultimate goal is the ‘mainland-ization‘ of Hong Kong -- welding it more tightly to China and neutering all political and social elements that Party authorities view as problematic.”

The U.S. has led foreign governments in expressing concern over the law, saying Hong Kong could no longer be considered sufficiently autonomous. It has revoked some special trading privileges, which help underpin the city’s reputation as a business hub, and sanctioned officials including Chief Executive Carrie Lam.

The U.S. reacted strongly after Hong Kong barred a dozen pro-democracy lawmakers from campaigning for office and then delayed by a year legislative elections scheduled for September. The Standing Committee of the National People’s Congress, China’s top legislative body, is meeting in Beijing and expected to discuss issues arising from the postponement this week.

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