A new security law for Hong Kong proposed by Beijing threatens to launch a new wave of deadly protests. That poses a grave threat to Cathay Pacific.
New Beijing Law Stirs Resentment In Hong Kong
On Friday, the National People’s Congress (NPC) in Beijing announced draft legislation that would ban secession, sedition, and subversion in the Special Administration Region. Hong Kong’s legislature would be bypassed.
An NPC spokesperson defended the law:
“National security is the bedrock underpinning a country’s stability. Safeguarding national security serves the fundamental interests of all Chinese people, including our HK compatriots.”
Christopher Patten, the last British Governor of Hong Kong, said the proposed law is a “comprehensive assault on the city’s autonomy, rule of law and fundamental freedoms” and represents a “flagrant breach” of the Sino-British Joint Declaration that accompanied the return of Hong Kong to China in 1997. Over 200 political leaders from around the world signed onto his letter, which also asserted:
“If the international community cannot trust Beijing to keep its word when it comes to Hong Kong, people will be reluctant to take its word on other matters.”
Hong Kong is ruled under a “one country, two systems” approach in which Hong Kong maintains a degree of autonomy over economic and political matters from the Mainland until 2047. Under Hong Kong’s Basic Law, Article 23 required Hong Kong to prohibit against secession and foreign interference:
“The Hong Kong Special Administrative Region shall enact laws on its own to prohibit any act of treason, secession, sedition, subversion against the Central People’s Government, or theft of state secrets, to prohibit foreign political organisations or bodies from conducting political activities in the Region, and to prohibit political organisations or bodies of the Region from establishing ties with foreign political organisations or bodies.”
Such laws were never enacted. The last major attempt was in 2003, which resulted in mass protests and was subsequently dropped.
Beijing’s latest action has already mobilized protestors in Hong Kong, who took to the streets yesterday to protest the proposed regulation. Police deployed tear gas and many arrests were made, but protestors vow that civil unrest will only intensify. Protestors and advocates assert that the people of Hong Kong must be granted self-determination, allowing them to decide the proper course for their region.
With tensions growing between the USA and China over coronavirus, China has warned of a new Cold War emerging. The bold move to clamp down on Hong Kong will only further strain tensions between China and other powers sympathetic to Hong Kong.
Cathay Pacific Will Suffer
Flag carrier Cathay Pacific of Hong Kong finds itself in the unenviable position of being collateral damage in the war over Hong Kong.
Long before COVID-19, civil unrest in Hong Kong led to fewer tourists, fewer business trips, and consequently stagnant revenue for Cathay Pacific. COVID-19 exacerbated the issue, but at least created a common problem for all airlines in the region.
But with travel starting to resume again, Cathay Pacific will be left behind if civil unrest scares away people from visiting or doing business in Hong Kong.
If you were hoping to visit Hong Kong anytime soon (noting it has done a tremendous job in its COVID-19 fight), be mindful that carriers will be reluctant to re-introduce service if there are daily or even weekly protests.
CONCLUSION
Last autumn, weekly protests were over a law that did not go nearly as far as what is now under consideration. I would expect protests will only escalate in frequency. In this precarious time for the region, Cathay Pacific must walk a fine line so as not to annoy either side all while it fights for survival in a new COVID-19 world.
image: Cathay Pacific
http://www.truth-hk.com
HK people are suffering enough from local terrorist.
Found the PRC agent.
Here’s a clue:. Any website or person that labels themselves the “truth” about something is full of propaganda.
I was there in November (everyone said, omg, scary!) and it was lovely.
I wasn’t planning a trip back this year until Spring 2021. But, I don’t understand why someone would stay away from a city because of protests.
It’s not like the entire city is a mob of millions of people roaming the streets all day..
It’s a non event if you just stay a few blocks away.
This certainly wouldn’t alter a trip if I was going to HKG. It’s still one of the best cities in the world, no matter what is going on.
Expect lots of comments about how Beijing is right and freedom is wrong from mysterious sources. Personally, I’m really saddened that Cathay may very well go under through no fault of their own.
You are correct. Trump is terrible but Xi is great leader. Xi backs Biden against Trump hegemony and being lap dog of Putin.
Remember, there is but one China and Taiwan and Massachusetts are part of China. No compromises.
Poor Hong Kong. Britain owned Hong Kong in perpetuity from Boundary Street, Kowloon, south to the island, which is most of the heavily built-up commercial areas. There was no lease from China in those areas; the only leased area was in Kowloon and the New Territories north of Boundary Street. Great Britain had a lot more to work with than it utilized in the agreement with China, and it could have held out for a better deal. Instead, Britain gave up easily and made a deal what was surely to be bad for Hong Kong at some point, and that point is becoming a lot closer than the anticipated fifty year mark. It is simply a matter of time until Hong Kong is lost for good. Britain should be ashamed.
Nowhere near as ashamed as the current Chinese government should be.
Very true but China (not to be confused with the Republic of China) threatened to cut off water. It could have been raised the price to be the same as the price of whiskey.
I wish Beijing would just give it a rest. What are they trying to achieve?
They are trying to achieve no dissension or rebellion anywhere else in China, including in Tibet and elsewhere. If Hong Kong citizens can protest what the central Chinese government is doing, then so can any other region in China. The central Chinese government wants total control of the entire country.
This is precisely the concern, especially in Taiwan and Tibet. I’m not a China expert, but the question is whether this is actually a viable threat. Thoughts? If Tiananmen-like events begin happening regularly, how would the world respond?
“If Tiananmen-like events begin happening regularly, how would the world respond?”
First time? Outrage. After that, increased resignation. It’s not like China is following other treaties that it swore to uphold. Those islands China built in the ocean as a natural resources grab? By China’s own agreement they are in international waters and not subject to Chinese sovereignty. That was agreed upon after the Communists took over.
For now, Hong Kong is still closed to the world, so Cathay Pacific is really no longer affected by these protests. For the past week, most protests remain fairly focused on certain areas. If you follow certain apps, you can pretty much find out which area you should avoid for that particular day. I expect most of the fierce protests will take place in June and July, which will not affect the tourism because there will be no tourists in short term. This time, Cathay Pacific is not going to be affected because there is just no one coming and leaving. I expect some Asian countries like Thailand, Vietnam and Malaysia will reopen its border to certain Asian countries especially places like Hong Kong, Taiwan, China, and South Korea with Covid-19 under control, but that won’t happen till later in the summer. From what I gather talking to various family and friends here in HK, most people have little desire to travel because they are still unsure about being on an airplane or they don’t trust the Covid-19 numbers in these SE Asian countries. Most people just want to go to Taiwan or Japan or South Korea, but Taiwan has already said that it won’t open the border till October the earliest. Japan and South Korea will definitely proceed more slowly too.
This new wave of protests will not affect CX that much becasue there is no business travel, conventions and tourism.
About politics, I think everyone here has already made up his or her mind, and it is just not worth the effort to argue anymore. However from CX’s point of view, protests for now will not affect them as much as last year because they don’t really have any traffic in and out of Hong Kong for now. China remains closed to the world, as it does not want Covid-19 to return to the country again. CX’s problem is beyond the protests for now. However, if there are sanctions against Hong Kong and other repercussions, it will be another story, but for now, COVID-19 will remain CX’s largest obstacle.