A Hong Kong court has convicted the publisher of the Wall Street Journal of deterring a reporter from taking up a trade union role, in a case that raised concerns about press freedom in the city.

Principal magistrate David Cheung ruled that Dow Jones Publishing, the parent company of the Wall Street Journal, was guilty of "preventing or deterring an employee from exercising trade union rights." The company was acquitted of a second charge of "dismissing or discriminating against an employee because she exercised those rights."

The case centres on Selina Cheng, a WSJ reporter who covered China's automobile and energy sectors. She was dismissed weeks after being appointed chair of the Hong Kong Journalist Association (HKJA) in 2024. At the time, the company told her the termination was due to restructuring.

Cheng alleged her employer had attempted to prevent her from taking up the union role. She said her editor had told her that employees should not be seen as advocating for press freedom in "places like Hong Kong," as it could be perceived as a conflict of interest. She also said the company required her to seek prior approval for outside activities and asked her to leave her then-board position at the association.

Cheng launched a private prosecution against Dow Jones Publishing after losing her job in July 2024.

Outside court on Thursday, Cheng said: "If reporters' employment rights are not sufficiently safeguarded, or when their rights are violated and not enforced in law, then we can no longer work safely as reporters."

During the trial, the defence argued that Cheng was terminated due to redundancy and that the prosecution had not sufficiently proved that the firm's management had instructed her supervisor. The defence also accused Cheng of acting in bad faith in a previous hearing.

Magistrate Cheung rejected those arguments. He said Cheng's termination "was motivated by wrongful and unjustified application of their code of conduct" when the company insisted she needed to seek prior approval to stand as chair of the HKJA. He described Cheng as "honest and reliable" and said she was clearly motivated by "the wish to see justice."

The two charges each carry a maximum fine of HK$100,000, equivalent to approximately $12,750. Sentencing is expected at a later date.

The WSJ maintained there was no link between Cheng's union role and her dismissal. At the time of her termination, the company issued a statement saying: "The Wall Street Journal has been and continues to be a fierce and vocal advocate for press freedom in Hong Kong and around the world."

Eric Lai, a senior fellow at the Georgetown Center for Asian Law, said: "The WSJ set a very bad precedent by punishing an employee who was exercising her constitutionally protected rights in Hong Kong."

The case has drawn attention to the media environment in Hong Kong, where journalists are operating under increasing restrictions. The HKJA, established in 1968, is the oldest journalist union in the city and has faced growing pressure since the introduction of a Beijing-imposed national security law in 2020.

Hong Kong has fallen sharply in global press freedom rankings since the law's introduction. In 2019, the city ranked 73rd in the world according to Reporters Without Borders. By 2026, it had dropped 67 places to 140th out of 180 countries and territories.