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Hong Kong’s tycoons face new scrutiny as protests underline yawning inequality Hong Kong’s tycoons face new scrutiny as protests underline yawning inequality
(about 1 hour later)
HONG KONG — As Hong Kong students gatheredto kick off a boycott of classes last month, setting the stage for a wave of protests, a very different meeting was taking place behind closed doors in Beijing. HONG KONG — As Hong Kong students gathered to kick off a boycott of classes last month, setting the stage for a wave of protests, a very different meeting was taking place behind closed doors in Beijing.
There, Chinese President Xi Jinping assembled nearly 70 of Hong Kong’s wealthiest tycoons in the plush expanses of the Great Hall of the People, reportedly to drum home Beijing’s opposition to the “illegal” pro-democracy movement and rally the business community behind its version of carefully choreographed “democracy.”There, Chinese President Xi Jinping assembled nearly 70 of Hong Kong’s wealthiest tycoons in the plush expanses of the Great Hall of the People, reportedly to drum home Beijing’s opposition to the “illegal” pro-democracy movement and rally the business community behind its version of carefully choreographed “democracy.”
It was, critics observed, the perfect illustration of how the Chinese government has ruled Hong Kong since the 1997 handover from British rule, attempting to impose its will by proxy through the territory’s business and political elite.It was, critics observed, the perfect illustration of how the Chinese government has ruled Hong Kong since the 1997 handover from British rule, attempting to impose its will by proxy through the territory’s business and political elite.
But it is a cozy model that is looking increasingly hard to maintain in the face of what many people see as Hong Kong’s political awakening. Further complicating matters are a series of economic factors behind the current protests — record income inequality, declining opportunities and a rise in property prices to stratospheric levels.But it is a cozy model that is looking increasingly hard to maintain in the face of what many people see as Hong Kong’s political awakening. Further complicating matters are a series of economic factors behind the current protests — record income inequality, declining opportunities and a rise in property prices to stratospheric levels.
“The reason so many people are still assembling here is because in the past 30 years, these rich people, these people in power, have controlled our lives,” student leader Lester Shum told a crowd of thousands of pro-democracy protesters in central Hong Kong on Friday. “They stopped the progress of the Hong Kong people. Do you want to be stopped by them for the next 30 years? We are here to fight and to take back our future.”“The reason so many people are still assembling here is because in the past 30 years, these rich people, these people in power, have controlled our lives,” student leader Lester Shum told a crowd of thousands of pro-democracy protesters in central Hong Kong on Friday. “They stopped the progress of the Hong Kong people. Do you want to be stopped by them for the next 30 years? We are here to fight and to take back our future.”
Although Hong Kong has a reputation of a bastion of free trade, enterprise and opportunity, in reality its domestic economy is dominated by cartels, monopolies and oligopolies, which control everything from supermarkets to drugstores, electricity supply to ports and buses, pushing up prices and holding down quality and environmental standards, says author and economist Joe Studwell.Although Hong Kong has a reputation of a bastion of free trade, enterprise and opportunity, in reality its domestic economy is dominated by cartels, monopolies and oligopolies, which control everything from supermarkets to drugstores, electricity supply to ports and buses, pushing up prices and holding down quality and environmental standards, says author and economist Joe Studwell.
The biggest and perhaps most damaging cartel of all, Studwell says, is in the construction industry, leading to fat profit margins and poor standards that have put decent homes out of the reach of the majority.The biggest and perhaps most damaging cartel of all, Studwell says, is in the construction industry, leading to fat profit margins and poor standards that have put decent homes out of the reach of the majority.
Integration with China has only reinforced the inequalities, pushing prices still higher, and leaving students here struggling to compete for the best jobs with their mainland compatriots. Official corruption seems to be rising, while Chinese Communist plutocrats make the territory their playground. While the Communist Party has not entirely forgotten the rural poor on the mainland, the Hong Kong government has done almost nothing to dismantle an unequal economic system that dates back to colonial times.Integration with China has only reinforced the inequalities, pushing prices still higher, and leaving students here struggling to compete for the best jobs with their mainland compatriots. Official corruption seems to be rising, while Chinese Communist plutocrats make the territory their playground. While the Communist Party has not entirely forgotten the rural poor on the mainland, the Hong Kong government has done almost nothing to dismantle an unequal economic system that dates back to colonial times.
But as the people of Hong Kong become ever more politically aware, they are becoming less willing to tolerate the status quo — and more willing to ask uncomfortable questions of the elite. The protests have been identified with citizens’ lack of voting rights, but they have also tapped into a deep sense of dissatisfaction and unease over living standards.But as the people of Hong Kong become ever more politically aware, they are becoming less willing to tolerate the status quo — and more willing to ask uncomfortable questions of the elite. The protests have been identified with citizens’ lack of voting rights, but they have also tapped into a deep sense of dissatisfaction and unease over living standards.
Studwell says the business elite are more nervous now than at any time since the Second World War, citing recent moves by the wealthiest of them all, Li Ka-shing, to divest some of his holdings in Hong Kong. “If he’s taking some chips off the table, you know things are blowing in a different direction,” he said.Studwell says the business elite are more nervous now than at any time since the Second World War, citing recent moves by the wealthiest of them all, Li Ka-shing, to divest some of his holdings in Hong Kong. “If he’s taking some chips off the table, you know things are blowing in a different direction,” he said.
On Thursday, the Hong Kong government turned its back on talks with the student leaders. While protesters continue to occupy downtown streets, Hong Kong’s two most senior officials, Chief Executive Leung Chun-ying and Chief Secretary Carrie Lam, left for China to mix with more officials and tycoons at a development forum in the southern city of Guangzhou.On Thursday, the Hong Kong government turned its back on talks with the student leaders. While protesters continue to occupy downtown streets, Hong Kong’s two most senior officials, Chief Executive Leung Chun-ying and Chief Secretary Carrie Lam, left for China to mix with more officials and tycoons at a development forum in the southern city of Guangzhou.
At home in Hong Kong, the business elite has remained largely silent throughout the protests, unwilling to put its head above the parapet and apparently unable to influence events. But their seeming indifference to the demands of the protesters may mask a deeper vulnerability.At home in Hong Kong, the business elite has remained largely silent throughout the protests, unwilling to put its head above the parapet and apparently unable to influence events. But their seeming indifference to the demands of the protesters may mask a deeper vulnerability.
Observers say the relationship between Beijing and the plutocrats has cooled in recent years: Beijing still needs Hong Kong’s tycoons on its side, but may be starting to realize the limits of relying on them.Observers say the relationship between Beijing and the plutocrats has cooled in recent years: Beijing still needs Hong Kong’s tycoons on its side, but may be starting to realize the limits of relying on them.
“These guys are not only unable to guarantee the peace and stability of the territory, they are a liability,” said Francesco Sisci, a senior fellow at the Gatestone Institute based in Beijing. “They are perhaps the root of the problem.”“These guys are not only unable to guarantee the peace and stability of the territory, they are a liability,” said Francesco Sisci, a senior fellow at the Gatestone Institute based in Beijing. “They are perhaps the root of the problem.”
Pro-democracy lawmaker Charles Mok accuses the business elite of more than silence: He says they are misadvising Beijing and grossly underestimating popular resentment of the status quo.Pro-democracy lawmaker Charles Mok accuses the business elite of more than silence: He says they are misadvising Beijing and grossly underestimating popular resentment of the status quo.
“These people of power and influence are telling Beijing what it wants to hear, in order to protect their vested interests under the political system,” he said. “The opinions being given to Beijing are consistently very, very conservative. Collectively they are missing the big picture.”“These people of power and influence are telling Beijing what it wants to hear, in order to protect their vested interests under the political system,” he said. “The opinions being given to Beijing are consistently very, very conservative. Collectively they are missing the big picture.”
That is certainly the view of many people on the barricades, such as 31-year-old Brendan Lee. “The chief executive, the cabinet and the legislature are all controlled by vested interests,” he said. “The political and economic problems are all the same here.”That is certainly the view of many people on the barricades, such as 31-year-old Brendan Lee. “The chief executive, the cabinet and the legislature are all controlled by vested interests,” he said. “The political and economic problems are all the same here.”
Fifteen years after finishing university, advertising executive Louisa Leung says she still can’t afford to buy a home of her own, while students graduating today face even worse prospects. “In the past 17 years [since the handover from British to Chinese rule], we have seen many unfair things, like high-ranking government officials taking bribes and political favors being granted to the rich and powerful,” she said. “That is why they are silent.”Fifteen years after finishing university, advertising executive Louisa Leung says she still can’t afford to buy a home of her own, while students graduating today face even worse prospects. “In the past 17 years [since the handover from British to Chinese rule], we have seen many unfair things, like high-ranking government officials taking bribes and political favors being granted to the rich and powerful,” she said. “That is why they are silent.”
However the protests end, Leung says Hong Kong will never be the same again, and that the tycoons cannot expect such an easy ride in the future.However the protests end, Leung says Hong Kong will never be the same again, and that the tycoons cannot expect such an easy ride in the future.
“Hong Kong people used to ignore what they were capable of politically, but a whole generation of young people will never go back to that state of mind,” she said. “It’s a collective enlightenment. The young are more aware of their rights and responsibilities. It’s a permanent change, a sea change.”“Hong Kong people used to ignore what they were capable of politically, but a whole generation of young people will never go back to that state of mind,” she said. “It’s a collective enlightenment. The young are more aware of their rights and responsibilities. It’s a permanent change, a sea change.”