Hong Kong Remains Important to China: Economist

Protests have paralyzed Hong Kong throughout the summer, putting China’s system of governance for the island into question. While the protesters’ numbers have fallen, the movement has expanded its demands and methods, including disruptions that have forced the Hong Kong airport to close. The protests may have dashed China’s vision for Hong Kong as an “‘economic’ city in which politics plays a minor role, and only then among an enlightened, disinterested elite,” reports the Economist. The article points out that China’s economy does not depend on Hong Kong and that the city’s economy went from being equivalent to 20 percent of China’s in 1997 to 3 percent today. Still, attitudes in Hong Kong serve as a barometer on Chinese governance and environment for conducting business – and the city has status in terms of international law, credit rankings and seamless access to Western markets. Most Chinese foreign direct investment passes through Hong Kong and China wants to protect Hong Kong as an economic powerhouse, but will not allow the protests to threaten communist control. China’s military stands ready to respond, and observers hope the protests subside with the start of school, and. – YaleGlobal