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Zheng's removal was partly due to anger over Hutchison

port

deal, source says

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Zheng's removal was sudden, his tenure shorter than some

others

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Zheng known for his hardline policies on national security

By James Pomfret and Clare Jim

HONG KONG, June 3 (Reuters) - Hong Kong's leader said on

Tuesday that China's recent removal of its top representative in

the city, known for his hardline policies on national security,

had been a "normal" personnel change.

In a surprise development, China announced late on Friday

that Zheng Yanxiong, the director of China's Liaison Office in

Hong Kong - Beijing's main representative office in the city

with powerful oversight over local affairs - had been "removed"

from his post.

He was replaced by Zhou Ji, a senior official with the Hong

Kong and Macau Affairs Office on the State Council.

Zheng, who played a key role in the crackdown on Hong Kong's

democratic movement in recent years, was also stripped of his

role as China's national security adviser on a committee

overseeing national security in Hong Kong.

No explanation by Beijing or Chinese state media was given

for the change.

According to a person with knowledge of the matter, Hong

Kong-based conglomerate CK Hutchison's ( CKHUF ) proposed sale

of its global port network to a consortium initially led by U.S.

firm Blackrock ( BLK ) had caught senior Chinese leaders "by surprise"

as they had not been informed beforehand and Zheng was partly

blamed for that.

The person, who has spoken with the liaison office, declined

to be identified as the discussions were confidential.

The Liaison Office gave no immediate response to faxed

questions from Reuters.

Zheng had served in the post since January 2023 and while

the position has no fixed term, his tenure was shorter than

predecessors including Luo Huining and Zhang Xiaoming.

"The change of the Liaison office director is I believe,

as with all changes of officials, very normal," Lee told

reporters during a weekly briefing, without being drawn on

reasons for the reshuffle.

"Director Zheng has spent around 5 years (in Hong Kong).

Hong Kong was going through a transition period of chaos to

order," Lee said, referring to the months-long pro-democracy

protests that erupted across Hong Kong in 2019 while adding that

he looked forward to working with Zhou.

CK Hutchison's ( CKHUF ) ports deal has been criticised in Chinese

state media as "betraying" China's interests and bowing to U.S.

political pressure.

The conglomerate, controlled by tycoon Li Ka-shing, agreed

in March to sell the majority of its $22.8 billion global ports

business, including assets along the strategically significant

Panama Canal, to the consortium. The consortium is now being led

by another member - Terminal Investment Limited, which is

majority-owned by Italian billionaire Gianluigi Aponte's

family-run MSC Mediterranean Shipping Company.

The deal is still being negotiated.

Asked whether Zheng's removal reflected a pivot by Beijing

towards economic development from national security, Lee said

Hong Kong still needed to pursue both.

"Hong Kong faces a stage where development and safety must

be addressed at the same time because any development must have

a safe environment."

China promulgated a powerful national security law in 2020,

arresting scores of opposition democrats and activists,

shuttering liberal media outlets and civil society groups and

punishing free speech with sedition - moves that have drawn

international criticism.