Shanghai | Hong Kong police have raided the newsroom of one of the city's most popular media outlets and arrested its high-profile founder Jimmy Lai for breaching the city's new national security laws, as Australia accused China of undermining civil rights in the territory.

Mr Lai, the founder of the Next Media group – which owns the Apple Daily newspaper – and an outspoken critic of China, was arrested early on Monday for allegedly colluding with foreign forces. The newspaper said two of Mr Lai's sons, who are senior executives at the company, and other senior managers were also arrested.