Why this Hong Kong court case could reshape US–China diplomacy Closing arguments in media mogul Jimmy Lai trial

The ongoing criminal trial of Hong Kong billionaire Jimmy Lai might have remained mostly within Mandarin- and Cantonese-language media had it not been for its potential to escalate into a volatile issue between two of the world’s most powerful nations, China and the United States. His prosecution has attracted coverage from international outlets and has even been raised by Donald Trump's administration during trade negotiations with China, with reporters repeatedly pressing the president on what steps he intends to take to support Lai. What is the broader significance of this case in global politics?

In order to understand why this court case impacts the broader political climate between the two superpowers, one needs to understand the origins of Lai and the legal persecution against him. As an article published by CNN in light of his court case's latest developments recalls, the 77-year-old media tycoon was arrested for his role in the 2019 pro-democracy protests and later charged with multiple offences, including collusion with foreign forces and sedition under colonial-era laws. Lai’s fortunes—personal and financial—have long been tied to Hong Kong’s evolution. His case returned to international headlines as closing arguments began on August 15, a stage expected to last several days.

Born in mainland China, Lai moved to Hong Kong at 12 and began working in a garment factory before building his fortune through the fashion brand Giordano. He became active in democracy advocacy following the 1989 Tiananmen Square crackdown, when Beijing deployed lethal force against student-led demonstrations. In 1995, he founded the newspaper Apple Daily, which became a leading voice for Hong Kong’s pro-democracy movement ahead of the city’s 1997 handover. A year earlier, he became a full British citizen, never holding a Hong Kong or Chinese passport—though local authorities still consider him Chinese.

According to the article, Lai’s outspoken stance made him a central figure in the 2019 mass protests triggered by Beijing’s attempt to introduce an extradition bill. Apple Daily supported the demonstrations, which expanded into broader demands for democratic reform after the legislation was suspended.

A staunch Trump supporter and devout Catholic, Lai is said to have visited Washington during the height of the protests, meeting Vice President Mike Pence and other officials. He long believed the US should defend Hong Kong’s civil liberties, vital to its role as a global financial hub.

“Mr. President, you’re the only one who can save us,” Lai told CNN in 2020, just weeks before his arrest that August, when police raided Apple Daily’s parent company, Next Digital.

Chinese prosecutors allege Lai’s lobbying amounted to calling for sanctions on Beijing and Hong Kong, a violation of the sweeping national security law imposed after the protests. His lawyers argue he ceased such activities once the law took effect on June 30, 2020.

How Trump found himself at the centre of Lai's case

In 2024, shortly before securing his second presidential term, Trump pledged to seek Lai’s release if he returned to the White House. When asked about Lai in a Fox News radio interview on August 14, he tempered those expectations.

“I didn’t say 100% I’ll save him. I said 100% I’m going to be bringing it up, and I’ve already brought it up, and I’m going to do everything I can to save him.”

“You can also understand, President Xi would not be exactly thrilled by doing it,” Trump added. “With all of that being said, his name (has) already entered the circle of things that we’re talking about, and we’ll see what we can do.”

Two close associates of Lai confirmed US officials raised his case informally with Chinese counterparts during May 2025 trade talks in Geneva.

“We understand it was informally brought up at trade talks, but we don’t know the context of it,” said Lai’s aide Mark Simon.

Mark Clifford, president of the Committee for Freedom in Hong Kong Foundation, said US Treasury Secretary Scott Bessent “had it as a mission” from Trump before June negotiations in London.

“I’m told that Bessent was tasked by the President and made it as part of his mission,” Clifford said. “Going into those talks, like immediately before those talks, Bessent told people that he was tasked by Trump with getting Jimmy out.”

US Secretary of State Marco Rubio also underscored the administration’s commitment earlier this year.

“We’ve raised it in every possible form and they know that it’s important to us,” Rubio told reporters in March. “It remains a priority, and I think other countries around the world are making the same point as well to the Chinese.”

British officials have echoed US pressure. Prime Minister Keir Starmer raised Lai’s case, who holds full British citizenship, with China's Xi Jinping during their first meeting at the 2024 G20 summit in Brazil. Foreign Secretary David Lammy has called his imprisonment “cruel and unusual punishment” and a “priority for the UK government”—remarks that drew strong condemnation from Beijing.

Beijing’s opposition to external influences

Chinese officials have largely avoided direct comment on Lai’s trial or the US’s involvement. But after the Geneva talks, a Chinese spokesperson at the Washington Embassy, Liu Pengyu, offered a rare response: “We strongly oppose external forces using judicial cases as a pretext to interfere in China’s internal affairs or to smear and undermine Hong Kong’s rule of law.”

Hong Kong authorities struck a similar tone, warning “any external forces” not to interfere in the city’s judicial process.

“Any attempt by any country, organization, or individual to interfere with the judicial proceedings in the Hong Kong Special Administrative Region by means of political power, thereby resulting in a defendant not being able to have a fair trial that one should receive, is a reprehensible act undermining the rule of law of Hong Kong and should be condemned,” the Security Bureau said, as cited by CNN.

The timing of Lai’s latest hearing coincides with Trump’s decision to extend a trade truce with China, granting both sides another 90 days to resolve disputes. The former president has recently softened his rhetoric toward Beijing and even expressed eagerness to visit China at Xi’s invitation “in the not too distant future” if a deal is struck.

“Jimmy Lai is British, not American. Given the high profile of his case, I doubt that China will be willing to make a deal,” said Yun Sun of the Stimson Centre.

“But the trade talks are a higher priority for Beijing. If Trump prioritises Jimmy Lai’s release, Beijing will be able to negotiate, although it all depends on the terms.”

By Nazrin Sadigova