Commentary on Political Economy

Sunday, 19 July 2020

U.K. Set to Halt Hong Kong Extradition Pact in Ugly China Fight

  • Suspension of extradition treaty with Hong Kong heavily hinted
  • Chinese ambassador: Don’t ‘dance to the tune of the Americans’
Dominic Raab, U.K. foreign secretary, arrives at number 10 Downing Street in London.
Dominic Raab, U.K. foreign secretary, arrives at number 10 Downing Street in London. Photographer: Simon Dawson/Bloomberg
The U.K. is about to test the risks of a wider confrontation with China that’s been a long time coming.
The next act is playing out Monday when Foreign Secretary Dominic Raab addresses Parliament. The top diplomat has dropped a heavy hint the U.K. will suspend its extradition treaty with Hong Kong, a former colony it handed back to China in 1997. The move would mark a further diplomatic escalation to a conflict that takes on the reach of Huawei Technologies Co. in post-Brexit Britain and the possibility of it sanctioning China over human rights abuses.
In a sign of growing tension, China’s ambassador to London threatened the U.K. with retaliation and accused it of bowing to U.S. pressure by banning Huawei from the U.K.’s 5G network. China also is irked by Prime Minister Boris Johnson inviting as many as 3 million Hong Kong residents to apply for U.K. citizenship.
China's Ambassador To The U.K. Liu Xiaoming Delivers A Speech
Liu Xiaoming Photographer: Chris Ratcliffe/Bloomberg
“You have seen what happened between China and the United States,” Liu Xiaoming said on BBC Television on Sunday. “They sanctioned Chinese officials; we sanctioned their senators, their officials. I do not want to see this tit-for-tat between China-U.S. happen in China-U.K. relations.
“I think the U.K. should have its own independent foreign policy rather than dance to the tune of the Americans, like what happened to Huawei.”
The stakes extend beyond Britain. The U.K. is part of the world’s most extensive intelligence-sharing network known as Five Eyes and after parting ways with the European Union it is vying for commercial opportunities to establish its “Global Britain” brand. In China’s eyes, an unresolved Brexit could make the U.K. vulnerable.
Can a 70-Year-Old Spy Alliance Endure in Era of 5G?: QuickTake
Canada’s experience, for example, offers a cautionary blueprint.
After Canadian authorities arrested Huawei Chief Financial Officer Meng Wanzhou in 2018 at Vancouver’s airport on a U.S. extradition request, China detained two Canadians.
The two were indicted on spying charges in June and Canada has also faced trade repercussions. China stopped buying Canadian soybeans and for a while banned its pork and beef. Beyond the boycott, there was the risk of targeted cyber attacks or that Canadians traveling to China risked arrests.
Potential British targets are emerging after the U.K. government reversed itself and excluded Huawei. China’s displeasure can take multiple forms, from boiler-plate rhetoric to actions behind the scene.
Bytedance Ltd.’s TikTok, the video app that President Donald Trump has said he’s considering banning, has suspended talks to build a global headquarters in the U.K., the Sunday Times reported. Bytedance is a private company, but it has found itself in the crosshairs of Beijing’s politics abroad, such as when a skirmish in a disputed area of the China-India border saw it banned in India.
Communist Party officials, meanwhile, have warned British companies doing business in China they’re set to face retaliation over the government’s decision to stop working with Huawei, according to the report.
What seems inevitable is that U.K.-Chinese relations are likely to chill further. In a Sky News interview, Raab was asked if the two countries still enjoy a “golden era” of diplomatic relations -- a term coined five years ago by then U.K. leader David Cameron.
“It’s not a phrase I would use,” responded Raab.
Meanwhile, the pressure from the U.S. is unrelenting. Secretary of State Michael Pompeo is due in London on Monday to meet Raab and U.K. lawmakers from all main parties on topics including “the fact that China now concerns everyone,” Conservative lawmaker Bob Seely said in an interview.
Canada, the U.S., Australia and New Zealand are the other Five Eyes members. The U.S., Canada and Australia suspended the extradition treaty and New Zealand is considering it. The U.S. is locked in a superpower trade war with China, while the others have economically vital relationships with the Asian titan.
“We’re going to follow U.K. national interests and we’re going to work with our partners — try and work with China on the things where we can really accentuate the positive, but be very clear-sighted and clear-eyed about the risks and we’re going to protect our vital interests and on Hong Kong,” Raab said on Sky News on Sunday.

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