Xu Jiatun became the CCP’s “special envoy” in Hong Kong during the crucial period of Sino‑British negotiations over the territory’s future. Operating through the Xinhua News Agency — which served as Beijing’s de facto embassy — Xu Jiatun was effectively the “Shadow Governor,” building a parallel power structure beneath the British administration. After arriving in Hong Kong, he carried out extensive united front work under the banner of making friends and winning favor among political and business circles.
Martin Lee, founder of Hong Kong’s Democratic Party, recalled meeting Xu Jiatun several times, saying: “Once, at lunch, he told me not to worry too much. Beijing had already sent about 50,000 people to Hong Kong, working in various sectors — government departments and professional fields. If the British withdrew before the handover, these people would step in.” This “parallel civil service” was meant to take over if the British exited abruptly, so the CCP’s grip on the city’s infrastructure would be instantaneous.
The British, before leaving, made arrangements to safeguard their interests. Xu Jiatun recalled: “We countered them point for point. At the time, I controlled hundreds of millions in special funds — wasn’t that exactly what they were for?” He admitted he gave HK$100,000 to veteran journalist Luk Keng, who refused to accept it and returned it. When asked by reporters who else he had funded, Xu Jiatun replied mysteriously: “I can’t say. If I did, it would cause chaos. Some things I can never reveal, not even until death.”
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