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This issue only happens on Windows 2008 R2 SP. We deployed the same application on Windows 2003 SP2 and Presentation Server and it works as expected (Users in London see time stamps in GMT and Hong Kong users in HKT).
Sounds like a Windows issue then don't you think? If the only difference is the OS and that difference gives you a different result then . . .
Since you didn't bother to provide ANY information about what your Java app does or how the users even access or use timezone-related information we have no way of knowing where Java might be getting its information.