Hongkong protests may signal more problems for Chin

China does not seem to understand.

When big multinational and even local companies are already in sympathy with the people of Hongkong, the Chinese Communist Party should try to listen. While the extradition law which the Hongkong legislature and the Central Committee tries to implement seemed rational, and consistent with China's core strategic policies of inclusion, China must recognize that Hongkong and other territories like Taiwan and Macau are peopled with individuals who were born outside the mainland, and therefore, are expectedly resistant of China's laws and policies. The recognition of "one country, two systems" is the only bond that has worked for Hongkong-West and China.

Hongkong serves nothing more than a financial hub. It is not a major industrial manufacturing hub. It is a port which bridges the West to the East. Western capitalists are not necessarily keen on operating under China's socialism, for reasons as old as the Cold War.

The peoples of Hongkong realizes this and placing them into the legal jurisdiction of China violates the earlier agreed "one country, two systems," principle. Hongkongers know that if such a law is implemented, it will discourage Western firms from having headquarters in the island. That would further affect the economy which has maintained a steady yet dismal 2% growth since the nineties. Lesser investments mean less income for Hongkongers who depend on foreigners and tourists for their survival.

In a way, what is happening in China is a struggle against a principle which violates another well established principle. China wants nothing more than make Hongkong a part of a bigger and larger economy like China yet doing so also means sacrificing the inflow of foreign investments into the island and eventually, to China.

And the timing is really not ideal. China's economic growth has slowed and I think economists within the Party thinks that by controlling Hongkong, it would at least stem the slow growth. This is a wrong assumption. China's productive capacity is slowing because of decreasing demand orders.

China's acts may impinged on Hongkong's economy, and it may even affect China's overall economic growth.