GOOD MORNING FROM LONDON #159
The FT reports the worries of the HK business community about what the National Security Law means for future commercial prospects. They can do no better than look at China and the increasing number of Billionaires welcomed into the fast-developing economy of China. That is their answer.
But what is the question? – the new law imposed by Beijing on a territory with a degree of autonomy. Will it stifle business initiative? Will it lead to the seizure of business assets, imposition of business taxes, a raid on business assets? In a phrase – will HK prosper or founder?
At the heart of Deng Xiaoping’s Reform were two features. Greater decentralisation of business decisions, away from the State towards the business owners AND greater political centralisation. And the effect? – China is stable and prosperous.
It will be the same in HK. Don’t mess with street protests and Molotov cocktails – detention will happen. Instead focus on profits, growth and asset development.
It worked in China. It will work in HK