Hong Kong court finds pro-democracy activist Jimmy Lai guilty of sedition

Jimmy Lai, a prominent pro-democracy activist and media figure in Hong Kong, was convicted on Monday of sedition and colluding with foreign entities. The Hong Kong court's decision comes after Lai was charged under the national security law imposed by Beijing in 2020, following widespread pro-democracy protests in 2019.

The court determined that Lai engaged in a "conspiracy to commit collusion with a foreign country or with external elements to endanger national security." The ruling also stated that Lai and his publication, Apple Daily, solicited foreign countries or entities outside of China to impose sanctions, blockades, or engage in other hostile actions against Hong Kong and China.

In its 850-page judgment, the court asserted that Lai harbored "resentment and hatred" towards the People's Republic of China for many years. Lai, a vocal critic of the Chinese Communist Party, had pleaded not guilty to charges of colluding with foreign forces and conspiring to publish seditious materials. He has been detained since 2020, and his trial commenced in December 2023. Sentencing is scheduled for January 12.

Following the verdict, Andrew Collier, a senior fellow at the Harvard Kennedy School, expressed concern about the impact on foreign investor confidence. He stated that investors seek an independent court system that protects the rights of citizens and the financial community. Collier acknowledged that the verdict was anticipated but emphasized the importance of investor confidence for Hong Kong's future. While Hong Kong has experienced growth in IPOs in 2025, Collier warned that a lack of comfort with the court system, as exemplified by the Lai case, could negatively affect the city's prospects.

Lai, who founded the Asian clothing brand Giordano, Apple Daily newspaper, and Next Digital media company, was also a topic of discussion between former U.S. President Donald Trump and Chinese President Xi Jinping during a meeting in South Korea. According to Reuters, Trump urged Xi to release Lai during that meeting.

The court stated that Lai's "only intent" was to undermine the Chinese Communist Party, even if it meant sacrificing the interests of the people of China and Hong Kong. The court described this as the "ultimate aim" of Lai's conspiracies and publications.

Prior to the verdict, veteran investor David Roche suggested to CNBC that a lenient approach in Lai's case could benefit Hong Kong's business climate. He believed that such an approach would reassure the financial community that Hong Kong had returned to its normal, business-driven state.

Lai obtained British citizenship before Hong Kong's handover to China in 1997.

The trial verdict represents the latest development in Hong Kong's evolving political landscape, marked by a decline in democratic opposition since the implementation of the national security law. Electoral system changes in 2021 have significantly reduced the number of directly elected members in the legislature, with only individuals deemed "patriots" by an election committee allowed to participate in elections.