HONG KONG – Monday marked the beginning of a significant legal proceeding as former Wall Street Journal reporter Selina Cheng took the stand, accusing the newspaper of unjustly terminating her employment due to her involvement in union activities. This high-profile case has stirred concerns about the state of press freedom in Hong Kong.

Cheng, who also serves as the chairperson of the Hong Kong Journalists Association, initiated this legal battle against Dow Jones Publishing Co. (Asia) Inc., the parent company of the Wall Street Journal. Her dismissal in July 2024 prompted her to file a private lawsuit, claiming her union role was the real reason behind her job loss, contrary to the company’s explanation of restructuring.

She contends that her refusal to heed her supervisor’s request to withdraw from the union election, rather than company restructuring, led to her termination. Cheng’s defiance highlighted her belief that her dismissal was retaliatory, not organizational.

Dow Jones is currently facing two charges under Hong Kong’s Employment Ordinance. The company has denied all allegations, with each charge carrying a potential penalty of up to 100,000 Hong Kong dollars, approximately $12,850.

The charges laid against Dow Jones include accusations of obstructing or deterring an employee from participating in union activities and unfairly penalizing or discriminating against an employee for exercising those rights.

The first charge alleges the company had prevented or deterred an employee from exercising union participation rights. The second alleges the company had terminated employment, penalized, or discriminated against an employee for exercising those rights.

Before Cheng’s testimony, Dow Jones representative Benson Tsoi last week accused her of abusing the criminal process and acting in bad faith when seeking to get the court to admit certain email exchanges. Tsoi highlighted emails showing Cheng had demanded 3 million Hong Kong dollars ($385,500) as settlement or reinstatement with a formal apology.

Tsoi said while Cheng had told the Labor Tribunal she didn’t intend to settle out of court, the emails showed she had pressed for mediation with the company.

Hong Kong, which returned to Chinese rule in 1997 after some 150 years under British control, was once considered a bastion of press freedom in Asia. Yet despite the Basic Law, the city’s mini-constitution which guarantees its Western-style civil liberties to be kept intact under a “one country, two systems” approach, the ability of the media to operate there has seen drastic changes.

Media environment in Hong Kong has faltered

After Beijing imposed a national security law in 2020, two local news outlets known for critical coverage of the government, Apple Daily and Stand News, were forced to shut down following the arrest of their senior management, including Apple Daily publisher Jimmy Lai.

Lai was convicted under the security law last Monday, facing up to life in prison. While the government insists his case has nothing to do with press freedom, rights groups expressed concerns. Amnesty International said the conviction “feels like the death knell for press freedom in Hong Kong.”

Two former editors at Stand News were also convicted in August 2024, the first journalists found guilty of sedition under a separate law since the former British colony returned to Chinese rule.

Cheng’s termination alarmed many journalists who are already operating in an increasingly restricted media environment in the city, where foreign outlets have traditionally faced less pressure than local news outlets.

Hong Kong ranked 140th out of 180 countries and territories in Reporters Without Borders’ latest World Press Freedom Index, down from 80 in 2021.