Hong Kong has witnessed violent demonstrations and social turmoil since last year, following proposed ordinance amendments. Some protesters resorted to violence, some colluded with external forces and others even advocated separation from China, exposing Hong Kong to increasing risks to national security.
Since the handover 23 years ago, Hong Kong was required to pass a national security law on its own but had not done so. The central government, therefore, moved to plug loopholes to ensure that hostile external forces can never disruptthe public order and jeopardize social and economicdevelopment in Hong Kong.
With the national security law for Hong Kong adopted and taking effect on June 30, the main work for the Hong Kong government is to assume the primary responsibility for national security in the city by building relevant agencies and taking proper measures.
There's a paramount necessity to do so. Hong Kong's economy shrank 3.2 percent in the third quarter last year from the previous quarter. For the whole of 2019, real gross domestic product contracted by 1.2 percent, the first annual decline since 2009.
The social turmoil effectively shut down shops and restaurants. Tourism was hit hard because few dared to visit the city. The Hong Kong Tourist Association said that visitors to Hong Kong in the second half last year decreased by 39.1 percent.
Also, 4 billion U.S. dollars in deposits flew out of Hong Kong last October alone to Singapore as investors sought stability, according to Goldman Sachs, and many started to lose their confidence in the city's business environment.
Hong Kong has at least temporarily lost its position as the most prominent financial hub in Asia: the city had dropped from third to sixth place from September 2019 to March 2020 in Z/Yen Group's newly released rankings of global financial centers, having been overtaken by Tokyo, Shanghai and Singapore.
Security and stability are always good for business and these will be bolstered by the national security law. As Mark Dong, Hong Kong-based co-founder of Chinese asset manager Minority Asset Management, said, from a long-term perspective, the release of the National Security Law increases the predictability of Hong Kong's stability. That's why business leaders welcome the introduction of the law.
When the legislation is in place, the Hong Kong government can get down to solving the deep-seated economic problems, such as the skyrocketing house prices, the lack of upward mobility and the widening gap between the rich and the poor.
People from all walks of life attend a campaign in support of the national security legislation for the Hong Kong Special Administrative Region in Hong Kong, south China, May 24, 2020. /Xinhua
People from all walks of life attend a campaign in support of the national security legislation for the Hong Kong Special Administrative Region in Hong Kong, south China, May 24, 2020. /Xinhua
For the 10th year in a row, Hong Kong has been listed as having the world's least affordable housing market, with an average price of 1.25 million U.S. dollars, according to the RBC Economics Housing Affordability Report. Per capita housing in Hong Kong is only 16 square meters, far below the 34 square meters per person in the neighboring province of Guangzhou and 39 square meters per person in the country as a whole.
Is there no land available in Hong Kong? In fact, less than a quarter has been developed, of which only seven percent is residential land and 41 percent is country parks. Since first Chief Executive Tung Chee-hwa proposed a plan in 1997 to provide 85,000 houses every year, the plan has not been implemented and the housing problems have not been solved due to various reasons.
About a fifth of Hong Kong residents are poor, according to the Hong Kong Poverty Situation Report. The latest taxation report announced by the Hong Kong government shows that the richest 10 percent of the population pay nearly 80 percent of taxes. The monthly income gap between the richest and the poorest has also grown over the past decade. Grassroots Hong Kong residents are frustrated by the lack of upward mobility and social equality.
What's worse, Hong Kong's unemployment rate has hit 5.9 percent, a record high over the past 15 years. The latest statistics show that 230,000 Hong Kong residents are out of work. The unemployment rate of people aged 15 to 25 who completed their studies last year in Hong Kong was as high as 18.2 percent from March to May this year – a year-on-year increase of 10.1 percent.
Those who are lucky enough to find a job were not satisfied with the starting salaries, which, when adjusted for inflation, were almost ten percent lower than 25 years ago, according to local think tank New Century Forum.
All these problems have long existed in Hong Kong society and can only be solved in a stable social environment.
At present, Hong Kong needs to focus on the enforcement of the national security law to decrease the risk of becoming a land of instability and insecurity. Then, its government can identify the deep-rooted economic problems and implement drastic reforms to achieve economic and social prosperity as well as to safeguard the city's long-term peace.
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