As protests in Hong Kong have continued to escalate between protesters and China’s ruling Communist Party, each side appears to become increasingly distant from the other. The term One China is not new, but what is new is the number of protests that have occurred and the amount of support that it is receiving from citizens. The protests in Hong Kong began to occur in April 2019 following an extradition bill that would have allowed the extradition of the citizens of Hong Kong to the mainland. Here is how China’s protests affect its poverty and economy.
Tourism and the Economy
In Hong Kong’s top tourist area Tsim Sha Tsui, many shop workers tend empty shops waiting for consumers. This district holds an assortment of luxury hotels, restaurants and boutiques that attract tourists. In recent months, however, it has seen an inverse of traffic as shoppers occupy it less and protesters occupy it more. At the beginning of 2019, businesses started to struggle from the strained U.S. and Beijing trade war. In the months following, the economic state worsened and the protesting has lasted for months to date.
Similar to the tourism business, other industries across the region have felt comparable effects from the protests as well. A large number of startup companies are beginning to consider other areas like Singapore for future operations. Some economists believe that China may be one step closer to a recession as GDP has decreased. Select industries are seeing a decline rate in the double-digits from previous years.
As the economy of China has been on the decline for months, immigrants from the mainland have moved to Hong Kong at high rates for the past 10 years. Estimates determine that between 60 to 70 percent of China’s population came from the mainland. In 2017, approximately 40 percent of immigrants from the mainland to Hong Kong were living under the poverty line.
Success So Far
Chinese leaders have held a goal to eliminate national poverty for several years now. Even with the protest and political tension that the region is facing, it still seeks to eradicate poverty. In the last seven years, nearly a billion citizens have risen from their impoverished status. In 2018, official counts determined that there were only 16 million people living below the poverty line. If the country continues at the rate it has been going, there will be just a few million people still in poverty by the end of 2019.
Distractions or Support
People have made numerous cases against the middle class, the largest class in the country. Some believe that this initiative has drowned out other issues that impact the nation. Topics such as extreme poverty and class status are beyond the realm of politics and legislation that people typically see. Another claim is that the economic frustrations of China’s citizens are pushing the protest to expand. What initially was about an extradition bill also serves as an opportunity for protesters to speak out about their concerns.
In the last decade, China has reduced the number of people living in poverty substantially, however, it has been occurring at a decreasing rate. In recent months, the discussion of China relates to the increasing rate of protests in Hong Kong. Many people have taken notice of how China’s protests affect its poverty and economy. The nation’s finances have been a point of interest as numbers fail to match those of previous years.
– Kimberly Debnam