The true cost of China’s Hong Kong crackdown

Economically, the unrest in Hong Kong doesn’t have much effect on China’s bottom line. But internationally, it’s a different story

Pro-democracy protesters have had a dramatic impact on the economy in Hong Kong, China . Picture: Chris McGrath/Getty Images

Events in Hong Kong have taken a dramatic turn in recent weeks. Last weekend’s municipal elections, which are normally a dull affair, became a lightning rod for anti-Beijing sentiment.

The elections resulted in a huge turnout and vote share for pro-democracy groups. The protests have had a severe effect on Hong Kong’s economy, but China’s next steps could have far-reaching consequences for the mainland itself.

Hong Kong’s GDP dropped by around 3 per cent on ...