Hong Kong leader says sudden removal of China's top official in the city was "normal"

+ Zheng's removal was partly due to anger over Hutchison port deal, source says

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

+ Zheng known for his hardline policies on national security

Hong Kong - 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 0001.HK proposed sale of its global port network to a consortium initially led by U.S. firm Blackrock 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 ports deal has been criticized 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.

(Reporting by James Pomfret and Clare Jim; Additional reporting by Jessie Pang; Editing by Edwina Gibbs)