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Hong Kong cannot afford faddish approaches to China. Hong Kong has to
deal with China as it is, day in and day out. Hong Kong must view China
realistically. And, realistically speaking, what do these economic
developments amount to?
Without doubt, they mean that Hong Kong is of immense value to China, and
vice versa. China is unlikely to want to kill the goose that lays the
golden egg.
And the people of China, especially of southern China, who
are experiencing a rapidly rising standard of living, are unlikely to want
to see a reversal of the open door policy. It is unlikely, therefore,
that China will retreat into isolationism.
But economic prosperity in itself does not guarantee a liberal political
regime. It is possible for the Communist leadership to move towards a
more free market economy without moving towards a more liberal system of
government. That, in fact, is what is happening right now. By raising
the standard of living of the people, the Chinese leadership is lowering
the level of discontent and relieving pressure for change. The Chinese
Government's goal is to consolidate its power by bringing about major
economic reforms without having to institute fundamental political
changes.
This pattern is already evident. The Chinese Government is allowing stock
markets to develop in Shanghai and Shenzhen. Public flotations and the
issue of "B" shares have been a great success. Even horse racing is being
revived with horses being supplied by the Royal Hong Kong Jockey Club.