Beijing can’t afford to trip up on HK balancing act

Two decades and three chief executives after its return to China, Hong Kong remains a leading financial centre and one of the world’s most competitive economies.

It is improbable that a realist like Chinese President Xi Jinping would risk throwing away this track record and global advantage with an over-exuberant power play (Can ‘one country, two systems’ continue to weather HK’s politics?; July 17).

Despite the political tensions and developmental obstacles it has caused, the merits of maintaining “one country, two systems” are too tempting for China’s leadership to ignore.

Hong Kong’s global standing rests on a combination of historical inertia and liberal politics. It remains a key gateway to the Chinese market for these reasons, despite the emergence of rival hubs on the mainland.

To scrap its indigenous laws and expunge its enterprising spirit would damage its appeal to foreign investors. No wonder Mr Xi reaffirmed his commitment to preserving Hong Kong’s unique political status during his visit.

Indeed, Hong Kong continues to figure in China’s long-term economic plans. The city, together with Shenzhen and Guangzhou, will underpin the Pearl River Delta megalopolis project that is due to take shape over the next 30 years.

That said, Mr Xi’s and his associates’ inability to win over the hearts and minds of Hongkongers is a challenge, which has manifested itself in the recent swell of pro-independence sentiment.

His warning about the “red line” in this respect may have been a poor choice of words, and much thought must be put into closing the communication gap.

Preserving Hong Kong’s autonomy while reinforcing its links with the mainland is a balancing act Beijing cannot afford to misjudge.