Sara Hsu reports on the Chinese government’s plans for how Hong Kong’s chief executive will be elected:
Hong Kong is at a political crossroads, as the National People’s Congress (NPC) in Mainland China has proposed to allow universal suffrage in final selection of the Chief Executive, as long as a nominating committee chooses candidates approved by the Communist Party. The proposal is to be voted upon by the Legislative Council; if rejected, the 2017 will be by committee, as in the last election (of Chun-ying Leung). Mainland China’s involvement in Hong Kong’s elections has reduced the ability of Hong Kong residents to freely run for and elect a candidate of their choice for the most powerful government position of this Special Administrative Region. Does this constraint negatively or positively impact the economy?
Hong Kong’s market economy is to be maintained at least through 2047 according to the Basic Law. China and Hong Kong have strong interests in upholding their mutual economies, as Hong Kong is the largest source of inward investment for Mainland China, and also the largest recipient of foreign direct investment from the Mainland. The economies are intricately intertwined through trade and investment, so in these respects, interests are intertwined.
Nor has the movement against Beijing political involvement gained widespread popularity from an economic perspective. Hong Kong’s pro-democracy movement, Occupy Central with Love and Peace, has in fact been accused by some of putting Hong Kong’s economy at risk. Even though the movement has had little direct impact on the economy thus far, pro-Beijing groups worry that the pro-democracy movement will give rise to political instability and jeopardize the economic well-being of Hong Kong residents.
