Exaggeration of HK economic woes not working

By Hu Weijia Source:Global Times Published: 2019/10/29 22:27:12

Photo taken on Oct. 24, 2019 shows a view of the east artificial island on the Hong Kong-Zhuhai-Macao Bridge in south China. Launched on Oct. 23 last year, the 55-km bridge, known as the longest bridge-and-tunnel sea crossing in the world, links China's Hong Kong Special Administrative Region (SAR), the city of Zhuhai of southern Guangdong Province and Macao SAR, making it more convenient for ordinary people to travel the three places in a single day. (Xinhua/Cheong Kam Ka)

 "Hong Kong's economy may enter a technical recession," Chief Executive of China's Hong Kong Special Administrative Region (HKSAR) Carrie Lam said on Tuesday. We have seen an intentional attack against the Hong Kong economy by some in the West and protesters bewitched by some Western countries. 

The ongoing riots are part of deliberate actions to destroy Hong Kong's economy and its future. We must spare no effort to stop such actions.

The turmoil has inflicted serious damage on Hong Kong's economy, which will be badly hit by the protesters and the power behind them. 

Hong Kong society should stand up against the riots, which have seriously damaged Hong Kong's well-being and future.

Knowing the deep-seated reasons for the "technical recession" facing Hong Kong's economy will be of practical significance in grasping the future development trends. 

Hong Kong isn't the only economy facing a possible recession. South Korea's economy slowed in the third quarter, growing only 0.4 percent from the previous quarter. 

Many Asian economies are expanding at their slowest pace since the financial crisis of 2008. The IMF has warned that the global economy is experiencing a "synchronized slowdown," in which 90 percent of the world is likely to have slower growth this year. It is understandable that Hong Kong, as a highly developed free port, has fallen into the same economic cycle as the outside world. 

Also importantly, the China-US trade war is hurting the economy in Hong Kong due to its negative effect on entrepot trade. 

Even if there hadn't been any riots, the HKSAR might have faced economic problems.

Hong Kong's economy is facing enormous challenges. However, it is undeniable that its foundations are still solid. After months of social unrest, Hong Kong remains the world's freest economy. 

The city has unique advantages under the "one country, two systems" principle, serving as a gateway for foreign direct investment into the Chinese mainland. 

Hong Kong is irreplaceable as the region's financial center, and it will retain its unique status even though more and more mainland cities overtake Hong Kong in terms of GDP. 

Some people have deliberately exaggerated the situation in Hong Kong. 

Why are they purposely ignoring facts in order to mislead the public? Because they want a large-scale collapse of the city's economy. Hedge fund manager Kyle Bass, a longtime China critic, in May urged investors who have assets invested in Hong Kong to immediately move them into US-dollar-denominated assets before it was too late. 

This is just a new variation of the "China collapse" theory, which has long been used by some Western analysts to contain China. 

Now, Hong Kong is their new target to hit the nation's economy. Their goal is to beat down China and its economy, but their wish will never come true.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn


blog comments powered by Disqus