You can tell yourself stories all day about Hong Kong staying “neutral” in the brawl between China and America. Wishful thinking. The US never lets anyone sit on the fence for long, and PCCW’s showdown proves it.
When Uncle Sam wants answers, he gets them—FCC style. On October 15, the US Federal Communications Commission lit the fuse on PCCW’s Hong Kong Telecommunications, hinting it’s about to yank their American license. They fired off a letter, demanding Hong Kong Telecommunications justify why it shouldn’t be shut down. The big hang-up? Alleged connections to China Unicom, a company branded by Washington as “Chinese Communist Party–controlled,” with national security risk stamped all over it.
No middle ground: The FCC in its letter claims that “Hong Kong Telecommunications belongs to a Chinese Communist Party entity.” China Unicom Americas made the security risk list in 2022 and got the boot from the US for the exact same reason.
PCCW’s American dream faces the chopping block: Right now, Hong Kong Telecommunications makes international calls and connects networks in the US. It’s a subsidiary of PCCW, controlled by Richard Li, son of Hong Kong heavyweight Li Ka-shing. China Unicom owns just 18% of PCCW—and PCCW holds 52% of Hong Kong Telecommunications. Here’s the kicker: the FCC says Hong Kong Telecommunications is “owned by” China Unicom Americas, even though 18% barely counts as an associated company (the US bar is at least 20%). America simply calls affiliation when it wants.
Rules Rewrite the Game
Washington’s latest trick springs from a fresh rule dropped by the US Department of Commerce’s Bureau of Industry and Security (BIS) on September 29. Dubbed the “penetrating rule,” it’s tailor-made for tightening screws on China.
The basics are brutal:
50% Ownership Rule: If a sanctioned outfit holds 50% or more of another company, it drags that company onto the blacklist too—whether or not it’s named.
Red Flag Warning: If you’re exporting and suspect the other side is a controlled affiliate, but don’t know the shareholding, you have to dig deep—run checks, apply for BIS approval, or confirm any license exceptions.
Beijing knows a sledgehammer when it sees one. The new US rule lets sanctions ripple down to cover stacks of subsidiaries and “affiliates.” In no time, the Dutch government swipes Wingtech’s Nexperia assets, freezing its chips and IP for a year. That’s a straight up block and grab of Chinese property.
The Financial Times calls the Dutch move a direct “Washington follow”—the Wall Street Journal quotes Wingtech execs: The Dutch used the American rule as their fig leaf for asset seizure.
America’s Penetrating Push Spreads
Frozen assets in the Netherlands, licenses yanked in the US—it’s all part of the same September 29 playbook. The rules keep stretching. Forget the 50% threshold. China Unicom only owns 18% of PCCW, yet suddenly, PCCW is deemed a Chinese affiliate. Washington’s logic? Whatever suits their moment.
The burden’s on everyone else now. The US wants foreign companies to do the detective work before partnering with any Chinese entity. Fail to ID a sanctioned Chinese controller, and you’re in the crosshairs too. Nobody wants to touch business with China for fear of Washington’s penalties.
Double Standards Laid Bare
Two lessons jump out.
First: America’s double standards are shameful and as sharp as ever.
China responded to the US “penetrating rule” by setting its own export controls on rare earths. Any product sold abroad containing Chinese rare earths—report it to Beijing, keep it away from military buyers the government forbids.
Trump claimed he was “shocked” at China’s “hostile moves”—CNN and the New York Times had a field day. America has long choked exports of semiconductors to China, then escalated with September’s rule. China’s just treating Washington with its own medicine.
The second lesson: Hong Kong people need a wake-up call.
Some still believe they’re “international citizens,” not bound to China. But in Washington’s game, every Hong Kong company—whether owned by the Chan, Lee, Cheung, or Wong families—is Chinese.
When America goes after China, Hong Kong gets caught in the crossfire. This PCCW case makes it clear: In this fierce fight, there’s no “neutral zone” for Hong Kong people. Stand up. Stand with your country.
Lo Wing-hung
Bastille Commentary
** The blog article is the sole responsibility of the author and does not represent the position of our company. **
In a series of blistering statements,The Hong Kong Office for Safeguarding National Security (OSNS) has drawn a red line in the sand for anyone trying to weaponize the city’s recent misfortunes. The message is crystal clear and ominous: If you use disaster to sow chaos in Hong Kong, they will hunt you down—no matter where on Earth you try to hide.
On December 3, an OSNS spokesperson doubled down. While the HKSAR government and local citizens were racing to save lives following the tragedy at Wang Fuk Court in Tai Po, a shadow game was already in play. The office accuses a "small group of external hostile forces" of looting a burning house. Under the guise of petitioning for the people, these actors are dusting off the old playbooks from the "extradition bill protests". They are activating agents, sabotaging relief efforts, and desperately trying to reignite the "Black Riots" memories. The verdict? Their actions are despicable enough to be universally condemned.
To drive the point home, the OSNS fired off three consecutive warning shots to overseas antagonists and anti-China disruptors:
First, we solemnly warn hostile foreign forces and anti-China disrupters that their actions of creating chaos and disorder in Hong Kong are intolerable.
Second, we solemnly warn hostile foreign forces and anti-China disrupters that their actions of adding fuel to the fire will inevitably bring disastrous consequences to themselves.
Third, we solemnly warn hostile foreign forces and anti-China disrupters that the long arm of the law will catch up with them.
The OSNS is keeping receipts. Every word and every action used to disrupt Hong Kong goes on the permanent record, and culprits will be pursued for life. "Anyone who breaks the law," the office warns, there is no sanctuary. Whether you are hiding across the ocean or taking refuge in Taiwan, severe legal punishment is inevitable.
Why is the OSNS speaking up now? Read between the lines, and you see three strategic pivots.
First, this isn’t hypothetical; they believe the foreign interference is already happening. Second, the crosshairs are locked on external forces, with a pointed finger specifically at those hiding in Taiwan. And third, it’s a preemptive strike against anyone overseas dreaming of stirring up another color revolution. The warning is blunt: Distance is not a defense.
Opportunists, Grifters, and Organized Lies
Take a look at the chatter exploding across the internet, and the opposing voices generally fall into distinct camps.
First, you have the fair critics. There is plenty of commentary that, while critical of the SAR government, remains objective. These observers stick to the facts disclosed by official investigations rather than drifting into malicious fantasy. This is a natural, human reaction to a "disaster of the century." And the smart money says the SAR government will take this advice to heart and improve.
Then come the fame vampires. When disaster struck, the opportunists came out of the woodwork. Look at "internet celebrity" Kenny, arrested on December 3 after cursing the Tai Po fire victims online for having "heavy sins." It was a blatant, tasteless grab for traffic, and it landed him in handcuffs for sedition. Then there are the exiled influencers abroad, wantonly bashing the SAR government while coincidentally begging people to subscribe to their Patreon accounts. The hustle is obvious: They are monetizing misery to please their financiers.
Finally, there is the organized sedition. Beyond the grifters, we are seeing waves of calculated propaganda. These aren't just complaints; they are fabrications designed to smear the SAR government and attack the Central system. Rumor mills are churning out wild stories linking material suppliers to the families of Central leaders—plots that are total fiction. It’s as if they believe overthrowing the Central government provides immunity from fire physics. Do massive fires not happen in Western democracies? The logic is broken, but in the heat of a disaster, it’s a potent recipe for inciting public rage.
Sniper Attacks From The Shadows
The temperature on these seditious campaigns was rising fast until the Police National Security Department stepped in. Once they acted, the local noise quieted down—but the overseas attacks only intensified. It raises a suspicious question: Is there a coordinated machine working behind the scenes to sustain sniper attacks against the SAR government? The narrative is set in stone: Whatever the government does is wrong. Before a single investigator has arrived on the scene, the instigators are already screaming for heads to roll.
Here is the bottom line. The OSNS isn’t pointing fingers at external forces for sport; they are firing warning shots because they see the smoke rising. We need to be sharper than ever. Don't let external opposing forces play you for a fool, twisting a tragic fire into a tool for subverting the local government—or even the Central government itself.
Lo Wing-hung
