'I Was Scared to Death'

Back in 1997, as Beijing regained sovereignty over Hong Kong, Jimmy Lai made everybody's short list of people who'd face trouble should Beijing decide to play tough. Lai, a vocal advocate of democracy, made millions starting trendy clothing retailer Giordano, then sold it after 1989, in the wake of China's pro-democracy demonstrations. His next venture, Next Media, is now Hong Kong's largest listed media company, and the flagship Chinese-language Apple Daily has remained unabashedly pro-democratic. Yet despite deep misgivings, Lai stayed in Hong Kong after the British departed, and 10 years on he is unabashedly bullish about the city's future. He recently discussed that decision, Hong Kong's various attributes and the state of China's media industry with NEWSWEEK's George Wehrfritz. Excerpts:

NEWSWEEK: People were concerned about media freedoms being upheld in Hong Kong after 1997. How have things gone since then?
Jimmy Lai: Beautifully. The press has been free. But a lot of the media has gone into self-censorship, either because they're so afraid or purely for economic considerations. They think that if they lean the Chinese government's way they will get [financial] benefits, or that by getting close to power they will become the voice of China. Still, there hasn't been any persecution or suppression.

What has been your strategy at Next Media?
We are the opposition media here, but we've never had a journalist arrested in Hong Kong. In China, some have been detained for a few days, then released. But [the foreign media] have had this happen, too. I have not been allowed in China for more than 10 years, and our reporters have to work there on tourist visas. But we've never been intimidated, persecuted or threatened. [Beijing] has tried very hard to keep the promise of one country, two systems.

Did you expect the Chinese government to act differently?
Ten years ago a lot of people told me: "They will have to arrest a few hundred people just to make sure Hong Kong doesn't revolt." And I thought that if they were to arrest just 10, maybe I'd be one of them. I was scared to death. Then the People's Liberation Army came in, and ever since we haven't seen them on the street. And nobody has been arrested.

So it's all good news?
Some subtle things have been eroded, like the legacy of Western values. Free markets, small government, things like that. Under [former chief executive] Tung Chee-hwa we had some very negative years. People lost their jobs and saw their houses go into negative asset value. Since China has allowed its tourists to come here, the economy has revived but we've become more dependent on China. In the old days we struggled through hard times using our own skills and resources. Now, whenever we encounter a problem we think that China may be able to help us. The more we are dependent on China, the more Beijing will be able to maneuver or even control our lives. This is a danger, but it's very subtle.

Do you know why you are blacklisted?
We've always rubbed [Beijing] the wrong way. But if we don't do that who else will? If we don't [create] a small space for different opinions, opposition opinions, there will be no competition of ideas and society will lean to one side. That would not be good for Hong Kong.