Money doesn’t lie; it’s in the airline figures. Cathay is reducing its capacity, largely from loss of demand for flights in and out of China. Hong Kong Airlines is dropping long hauls to and from Australia, the US, and Canada. Clearly, both Chinese nationals and Pacific English speakers have lost confidence in Hong Kong. Hong Kong was special—for tourism, culture, lifestyle, trade, finance, and a slough of other things—all because both Chinese and the English-speaking West had easy and overlapping access. They could meet, they could do business, they could speak their own language, and they could enjoy Chinese culture without the oppression of a Confucian-Communist government. But, neither wants to play ball anymore.
In response to the US ending exports of riot-control weapons and defining autonomy as “being autonomous”, China banned the US Navy from making port stops in Hong Kong. The port stops had been an encouragement to international business, reassuring investors that everything was alright between the US and China. But, apparently China doesn’t want that illusion of reassurance to continue. And, more importantly, China obviously is less fearful of the US Navy making its R&R port calls in Taiwan instead.
Watch for many things to shift to Taiwan. While the first finance leaders in Hong Kong are exiting to Singapore, watch for a swath to relocate in Taipei once Singapore’s galore wears off and finance centers discover the difference in real estate prices and cost of living.
China will still be angry enough to blow a few gaskets when the US Navy does make more port calls in Taiwan, it’s just that they are less fearful of it for the time being. China’s leaders have been had, largely due to their thirst for respect, which blinds their judgement. But, they are incapable of learning, so they are only going to be had more and more.