The difficulties faced by media tycoon Jimmy Lai Chee-ying in his planned flotation of Next Media (Holdings) is a reminder that freedom of expression, particularly the freedom to criticise Chinese leaders, will not be tolerated.
Last week Next Media threatened to take legal action against Sun Hung Kai International for deciding not to sponsor its plans for a stock exchange listing. Next said the financial services group cited 'understood pressure' as the reason for pulling out.
Mr Lai's business has paid a hefty price for his outspoken criticisms of Chinese leaders, including premier Li Peng whom he denounced in 1994 as a 'turtle egg'. Although Mr Lai's latest travail is no surprise, it is a sign that free speech could soon be a thing of the past.
Next Media's trouble was revealed on the day Chief Executive-designate Tung Chee-hwa told CNN it might be unlawful for Hong Kong people to make 'slanderous, derogative remarks and attacks' against Chinese leaders after the handover. Mr Tung's comment was a repetition of a similar threat made by Chinese Foreign Minister Qian Qichen last year.
Most news media dutifully reported what Mr Tung said but did not present opposing views. The local media's tendency for self-censorship was highlighted by United States Consul General Richard Boucher in his recent speech in Washington, in which he expressed reservations about the future of press freedom.
Mr Boucher said he was told by media people that China would retaliate for unfavourable reporting or editorials by swinging advertising dollars away to more compliant competitors. Besides journalists, fund managers and analysts are also coming under increasing pressure to exercise self-censorship. Some have been sacked while others have been asked by senior management to tone down criticism of mainland firms.