Hong Kong’s lingering turmoil suggests that its economic future is not assured. Recently, the Chinese People’s Daily accused Washington for colluding with Occupy Central protest organizers to try and foment a “color revolution.” In the West, the charge has been downplayed. Today, Hong Kong must cope with political, economic and external risks.
For years, Beijing has feared colour revolutions. Now, it has one on Chinese soil. The Occupy Central movement has morphed into the Umbrella Revolution. Tens of thousands of Hong Kong citizens, including students as young as 13, have taken to the streets to protest against the Chinese central government’s electoral reform package.
Just before midnight on 2 October, CY Leung, Chief Executive of Hong Kong, agreed to negotiations with student protest leaders on the issue of political reform. The protesters, as well as the people of Hong Kong, can be very proud of what they have achieved so far.
They have occupied not only the Admiralty area, but also several districts and ensured that the police cannot charge for another crackdown. The attempt on 28 September backfired; the use of tear gas against peaceful student protesters provoked an enthusiastic response. Many more people have taken part in the protests.
On 31 August, when Beijing’s offer of universal suffrage to Hong Kong came with an extremely restrictive framework allowing for only two to three establishment candidates, it was just another sign of the Chinese government taking greater control over its special administrative region.
The Chinese government this week said it would oppose any Hong Kong Chief Executive who “plot to overthrow the rule of the Chinese Communist Party,” even though Beijing earlier promised universal suffrage for the special administrative region by 2017, reported Bloomberg.
Hong Kong Chief Executive Leung Chun-ying has announced up to HK$10 billion ($1.3 billion) in subsidies to replace and limit diesel-powered vehicles in the former British colony, reported the Financial Times on Wednesday, following growing concerns that the air quality in the Chinese territory was now mirroring those of the mainland.
Hong Kong comes under the other high-income group economies as to the classification made by the World Bank on the basis of income for the year 2006.
The country follows a free market economy system. The services sector of the country largely contributes to the economy. As to statistics, about 90% of the Gross Domestic Products in the country comes from the services sector followed by the industrial sector.
Han Dongfang is founder of the China Labour Bulletin, a Hong Kong-based organization that defends the rights of workers across China.
After 30 years of reform and spectacular economic growth, the cracks are beginning to show.
The workers who have created China’s economic miracle are tiring of being treated like cogs in a machine, working long hours in dangerous conditions for derisory pay.
Hong Kong Economic Forecast Hong Kong has a free market economy, one that depends heavily on international imports and exports, as well as finance. Because of this, the country has been exposed to economic struggles that other countries face. For instance, during the recent global financial crisis, Hong Kong was affected right along with all other countries. However, prior to this crisis period, Hong Kong has a large share of re-exports, which pushed the Gross Domestic Product or GDP to 404% in 2007.
