Hong Kong has not been good in the past few years. Long celebrated to be a cultural symbol of East Meets West, the tension between its mostly West-leaning population, and its gigantic sovereign destined to achieve national unity, had grown over the years. The cultural fault line finally culminated into massive anti-China protests and riots in 2019. Of course, it’s China we are talking about, so the pendulum swung back in full force. When the dust settled, Hong Kong has become much more aligned with China than in the past, with many symbolic anti-China organizations and news outlets rooted out, its political process “optimized”, and the red flags of China flying all over the city.
This is just part of the challenge. The well-documented “dynamic covid zero” policy of China, and its weaker-but-still-annoying version in Hong Kong, has effectively isolated the city from the rest of the world including Mainland China itself. An international financial and business hub simply cannot function without free movements of people, and Hong Kong’s economy has been in the doldrums since Covid.
As a result, a record number of people are heading for the exit, including:
- Hot-headed Hongkongers scared-shitless about the encroachment of China into Hong Kong, and would uproot their families to pursue a new life and “democratic values” in a Western country (notably the UK)
- Cool-headed Hongkongers who take advantage of easier immigration policies of certain Western countries (notably the UK, which has recently discovered its conscience to shelter the scared-shitless Hongkongers) to get a second passport, because why not?
- Professionals and businesspeople who increasingly view Hong Kong’s Covid-zero-ish policy a hindrance to their business pursuits, hence would move to an alternative city (notably Singapore)
- Young people seeking to explore the world, or people simply wanting a change of scene, amid everything that’s happening in life and in the world, so why not?
The brain drain is real. To many, Hong Kong is not what it used to be, and the city has lost its luster, too much a hostage taken by its gigantic sovereign. So is that it — are the glorious days of Hong Kong already a thing of the past?
Why Hong Kong?
Before we jump to the future of Hong Kong, it is helpful to revisit its past. In the post-war period, Hong Kong’s population exploded, as many people — with or without money — moved from a war-torn and revolutionary China to the former British colony to seek reprieve. With increased labor supply, capital and know-how, Hong Kong was rapidly industrialized and started its decades-long ascend to become one of the most important cities in the world.
At the same time, China underwent seismic political, societal and economic changes under Communist rule since 1949, and was essentially cut off from the Western world. As the United Nations, led by the US, imposed a wide-ranging embargo on China in 1949–1971, Hong Kong became the discreet middleman between China and the West. Hong Kong’s access to global capital, ideas and goods, and its far-reaching transportation links, helped cement its role as China’s “window to the world”.
Fast forward to the 1970s, China’s relationship with the US improved, and in 1978 China embarked on the “reform and opening-up” policy which gave rise to decades of phenomenal economic growth as well as integration with the US-led global economy. Again, Hong Kong played an indispensable role to facilitate China’s economic rise in the subsequent decades. From being a trading and shipping hub of manufactured goods, to a template for modern business and financial management, then to the offshore financial center of China, Hong Kong became the modern, capitalist, trader-broker-agent between China and the West.
Undoubtedly, the relationship between Hong Kong and the Mainland was also symbiotic. Many Hong Kong companies and people made ton loads of money riding on the tailwind of China’s economic growth. China also provided strong backing to Hong Kong amid various crises, notably the 1997–98 Asian Financial Crisis.
Where We Are
Over four decades have passed since China embarked on its reform and opening-up policy, and China already trades and engages with the West directly, without Hong Kong in the middle, except perhaps being an occasional stop-over.
Is that true though?
For Hong Kong to remain important and relevant as the international city of China, it has to:
- Serve a unique purpose for China that no other Chinese city can replace
- Serve a unique purpose for the rest of the world that no other international city can replace
- Be a great city of and in itself, able to carry its own weight as a vibrant place to live, work and play
I will explore each of these aspects in Part 2 of this article.
Make Hong Kong Great Again (Part 2) | by Jason Chan | Jul, 2022 | Medium
