http://money.cnn.com/2014/10/03/news/economy/hong-kong-matters-china/index.html?iid=SF_BN_Lead
"One country, two systems" is the motto that Hong Kong has believed in but that philosophy has been compromised. After China stated that they will be selecting the candidates for the people to vote on for their city leader, riots broke out in extreme proportions.
The Hong Kong economy is 3.1 Trillion and it plays an important role in main land China because it raises cash from foreign investors (45.3 Billion last year from investors to mainland Chinese companies). 2/3's of foreign investment to China runs through Hong Kong and the protests have took a large hit to the economy, shutting down schools, businesses, and even the Financial District of the city,
Hong Kong officials are said to meet with protest leaders in the next coming week and it should be very interesting to see what is done to end the protests.
I'm not sure how quickly of an end this issue is going to have. China wants to control Hong Kong's government badly. Therefore, I don't think China will be releasing its influence on Hong Kong anytime soon, which means that riots will continue. China is only hurting the Hong Kong economy at this point, and I believe it should rethink its strategy to better off the entire situation
ReplyDeleteIt's going to be real interesting how the Chinese government responds. The last time the Chinese people protested the government was in 1989 in Tiananmen square and that ended with bloodshed. Hopefully that doesn't happen this time around. The fact Hong Kong's economy is so strong should really help their case and the fact they have so much foreign investment. It will also be interesting to see how the protesters affect the global economy.
ReplyDeleteAn election...In which only a chosen few can participate. This whole thing seems like a farce from an outside perspective, though it is probably very real for the residents of Hong Kong.
ReplyDeleteAs far as it goes, though: Hong Kong's economy is only as massive as it is due it's being the second of "two systems." It was left this way for a reason. I wonder whether or not, if this new vote passes (as it likely will, based on who's participating) how many foreign investors will back out and also whether or not China is prepared to deal with this.