NEWS & EVENTS

On November 13, 2019, the Edwin O. Reischauer Center for East Asian Studies hosted a presentation by Dr. Ho-Fung Hung, the Henry M. and Elizabeth P. Wiesenfeld Professor of Political Economy in the Johns Hopkins School of Advanced International Studies | SAIS.

Dr. Hung’s talk, entitled “Chinese State Capitalism and Its Discontents in Hong Kong,” examined Hong Kong’s importance as a financial center in China, as well as the growing pushback to Beijing’s political influence in the semi-autonomous territory. Pointing to Hong Kong’s roles as an intermediary for inward and outward Foreign Direct Investment in China, safe haven for private assets, starting point for RMB internationalization, and gateway for sensitive foreign technology, Dr. Hung argued that the territory is still vital to China’s economic well-being, and cannot easily be superseded by other Chinese financial hubs. This unique importance, Dr. Hung asserted, has led to rapidly rising housing prices in Hong Kong, as well as an expanding presence of mainland Chinese state-owned enterprises that is squeezing out local companies. These problems have sparked discontent amongst a wide range of socioeconomic classes in Hong Kong, creating considerable repercussions both within China and in the international community. Tensions will likely continue as Beijing approaches the termination of its “one country, two systems” policy in 2047, which will bring an official end to Hong Kong’s political separation from mainland China.