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antielabmovementanditsimpactonhongkongse

ANTI-ELAB MOVEMENT IN HONG KONG

Harshita Kukreja and Sneha Mathur

A Brief Background
An agreement was reached in 1984 between Britain and China over the question of Hong
Kong, which was a result of deliberations that had begun early in the 1980s - a period
approaching the end of the 99-year-lease over its control. While China was in favour of
bringing the territory under its communist government, Hong Kong was returned to the
nation with the implementation of ‘one country, two systems’ under the Basic Law, providing
the region with great autonomy in multiple spheres barring defence and foreign affairs for
half a century.
This agreement is set to expire in 2047, post which the political and economic position of
Hong Kong is ambiguous.
Although the liberties and freedom exercised by Hong Kong are visible when compared with
the rest of China, allegations were made regarding Chinese interference in its internal
politics, including the election of the Chief Executive of Hong Kong, among the most
important issues discussed.
Popular dissatisfaction is also presently reflected in the way people identify themselves;
according to recent statistics, only 11% of the citizens of Hong Kong call themselves
‘Chinese’ - most prefer to identify themselves as ‘Hong Kongers’ despite being of Chinese
ethnicity. Mostly prevalent in the youth, nearly 71% of the population claims to not feel
proud of being Chinese citizens.


Current State of Affairs
In the ongoing pro-democracy protests in the city, people have taken to the streets in large
numbers to express their concerns over the extradition bill, later indefinitely suspended by the
city leader, Carrie Lam. Hong Kong underwent utter chaos and violence in the past few
months due to brutal clashes between the police and the protestors. Globally, numerous
rallies in Canada, Australia, UK, and the US, among others, supporting Hong Kong have also
been held.
A large number of protestors are also against Carrie Lam and demand a complete withdrawal
of the extradition bill. Meanwhile, Chinese President Xi Jinping has warned Hong Kong of
taking any action against the nation. The people perceive Chinese interference in Hong
Kong’s legislative and legal system as a major concern, anticipating that China might be
looking forward to having greater control over their territory.


Impact of the Protests
Hong Kong’s economy has seen a sharp fall in growth since the protests began. Tourism is
the major industry of the city, and the political condition has further worsened the financial
situation of Hong Kong. With the airport itself becoming the hub of protests, flights were
cancelled, and thousands of demonstrators along with the airline staff held sit-ins to spread
awareness about their demands among visitors. Significant declines in the number of tourists
and flight bookings to Hong Kong have occurred due to safety concerns. Retail sales and
exports have also decreased this year in Hong Kong.

However, the financial sector of Hong Kong seems to have been less adversely affected when
compared to its economy. Foreign exchange reserves of the city, along with strong fiscal
reserves, can potentially defend the currency-peg system, according to studies by market
analysts, despite the massive outflows pushing up the value of HK $7.85.

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References:
https://www.asiatimes.com/2019/10/article/as-protests-boom-hong-kongs-economy-busts/

https://www.nytimes.com/2019/10/13/world/asia/hong-kong-protest-economy.html
https://www.theguardian.com/world/2019/oct/16/hong-kong-carrie-lam-address-video-
democracy-
protest

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Image Courtesy : Bloomberg

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