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China Vision: China’s Crusade to Create a World in its Own Image

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In the wake of Chinese leader Xi Xinping’s moves to make himself ruler for life, everyone is wondering about his government’s ambitions for its role in the world.  Daniel Wagner has written about what the trends indicate in China Vision: China’s Crusade to Create A World in its Own Image.

The book notes the paradox that China is in regards to investment.  The world’s 2nd largest economy continues to accept billions of dollars in development loans from banks like the World Bank and Asian Development Bank.  Meanwhile, Chinese state banks are loaning trillions of dollars to countries around the world.  Chinese entrepreneurs are feverishly setting up businesses abroad and purchasing foreign companies and real estate. If a foreigner wants to invest in China though, they must accept ownership stake limitations and obey rules that explicitly make them less competitive.  In regards to domestic investment, Wagner argues that China invests way too much on grand public projects, like apartment blocs that remain largely vacant, and not enough on small-midsized businesses.  One of these days (the next global recession?), the chickens will come home to roost and China will have to re-evaluate its blank-check policy.

Much of the book focuses on China’s role in foreign diplomacy and commerce.  The fledgling superpower is in the process of spending trillions of dollars on loans to the developing world, particularly through its Asia-oriented Belt and Road Initiative.  These no-strings attached loans give China enormous power over many of the poorest countries in the world.  Many people, like former Maldivian PM Mohamed Nasheed, have outright accused China of imperialist behavior.  The author writes that, “Kenya was to be forced to relinquish control of its largest and most lucrative port in Mombasa to Chinese control as a result of Nairobi’s inability to repay its debts to Beijing.”  China also owns ports in locales as diverse as Djibouti City and Zeebrugge, Belgium.  Chinese firms are likewise emulating some neo-colonial tendencies.  For instance, Wagner writes that, “Fewer than half of these [African-based Chinese] firms sourced inputs or had African management.”  Controversial Chinese real estate projects like Forest City, Malaysia are arguably examples of literal colonialism.

Through this strategy of buying friends and building a global network of ports, China is strengthening its impunity as a Top 3 naval power.  Increasingly, China is treating the South China Sea as its private fiefdom by ignoring credible territorial claims of the Spratly Islands and Scarborough Shoal by the Philippines, Indonesia, Japan, Brunei, Malaysia and Vietnam.  Most disturbing of all is Xi’s recent verbal aggression towards Taiwan.  By buying friends, China can mute criticisms of this military aggression in the UN and isolate foes like Taiwan (only 19 countries have diplomatic relations with it).  With a rapidly expanding fleet of sea craft, the People’s Liberation Army Navy is better equipped than ever to project hard power via all of China’s ports, from off the coast of the Philippines to Belgium…. On this dire note, I wish Wagner had written more about the budding conflict between China and the other 1B-person country in the world, India.  I predict that the dichotomy between democratic India and totalitarian China will determine the future of humanity.  Seeing as India & China (and China’s close ally Pakistan) all possess thermonuclear weapons and have recent military skirmishes with each other, one can only hope that the Tiger and Dragon don’t initiate WWIII squabbling over a sleepy locale like Kashmir or Nepal.

In the final section of the book, Wagner writes about China’s dominance in the virtual sphere.  Chinese tech companies like Baidu, Alibaba and Tencent are rapidly catching up and even beating Silicon Valley in terms of traffic, profitability and innovation (most importantly, AI).  China has also become the de facto global leader in green technology.  China’s blank-check philosophy funds these rapid advancements.  A lot of this apparent innovation, however, is fuelled by corporate espionage.  For the past few decades, Chinese firms (often with official backing) have been using spies and hacking to steal blueprints and thus reverse engineer inventions.  Ironically, these knock-offs are oftentimes sold to the US government, which creates a huge security risk.  In many cases, Western companies willingly share confidential data with China in order to be granted access to the Chinese market.

China’s running racket of stealing IP and personal user data from US companies that choose to operate in China demonstrates the importance of government regulation… In this case regarding national security and user privacy protection.  Ironically, China enforces data encryption and other cybersecurity measures through regulations like the 2017 Cybersecurity Law.  The willingness of Western companies to literally sell themselves out to China in the frenzied hope of making a quick buck in the world’s largest market is textbook junkie-mentality.  These free market free-basers expose their fundamental flaw in the face of China’s system of state capitalism.  By ceding responsibility of investment from the government to the private sector solely, countries like the US are being vastly outspent by China in everything from space travel to quantum computing research.  As economists like Michel Aglietta and upstart politicians like Alexandria Ocasio-Cortez point out, the state must be responsible for picking up the slack when the free market fails to focus on important long term projects, like a Green New Deal (China already has its own publically funded version of the GND).

China Vision is a good account of the Chinese Communist Party’s domestic heavy-handedness and foreign diplomacy-via-blank-check.  The two are interconnected, as China’s crackdown on internal dissidents informs how it treats foreign countries and human rights activists who dare to oppose it.  Through China’s Belt and Road Initiative of loaning billions of infrastructure dollars to developing nations, it can control them through a carrot-and-stick approach.  China’s spy state apparatus is also being used to sabotage foreign humanitarian organizations, religious groups, governments and companies.  The CCP may soon export its surveillance state blueprint to other interested authoritarian states, setting the stage for a cold war between China and its client dictatorships & the Western democracies.  The People’s Liberation Army is preparing for this possibility with a huge naval buildup in the contested South China Sea, aided by all of the “civilian” ports that it’s building there under the auspices of the BRI.  Daniel Wagner’s book does a good job of explaining these geopolitical trends in a concise and even-handed way.  He explains how colonialism and the Cold War helped to shape China’s cynical outlook on the world and doesn’t exaggerate China’s capabilities.  Anyone in politics, tech, economics or the NGO sphere will learn a lot from this book.

Russell Whitehouse is Executive Editor at IntPolicyDigest. He’s also a freelance social media manager/producer, 2016 Iowa Caucus volunteer and a policy essayist.

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East Asia

Quad Infrastructure Diplomacy: An Attempt to Resist the Belt and Road Initiative

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Over the years, the competition between the great powers in the dual space of the Indian and Pacific Oceans has been rapidly increasing. In the face of the aggravation of relations between the PRC and the United States, the defence dimension of the rivalry between the two contenders for global leadership traditionally comes to the forefront. However, in today’s context, the parties will most likely not engage in military action for the strengthening of their dominance in the region, but they will try to achieve the goals by expanding of economic influence. In this context, along with the well-known trade wars, there is an infrastructure rivalry in the region, which is enforced on Beijing by Washington and the Quadrilateral Security Dialogue (Quad).

The role of Infrastructure in Indian and Pacific Oceans’ countries

The countries of Asia traditionally drawing the attention of the world community due to the high rates of economic, technological, and social development. In less than three decades, their per capita income has increased by 74%, millions of people have been lifted out of poverty, as well as a growing middle class has emerged in the region. All this became possible due to the multilateral cooperation institutionalization and the integration of the economies of the Indo-Pacific. However, the strengthening of trade and economic ties and the future prosperity of Asia largely depends on the infrastructure (ports, highways and railways, airports, pipelines, etc.), which contributes to a more active movement of goods on a regional and global scale. Moreover, back in 2009, the Asian Development Bank (ADB) published a report according to which collective investments in infrastructure in the amount of US$8 trillion will be required to maintain rapid economic growth in Asian countries.

The most prominent infrastructure initiative in recent years is the «Belt and Road Initiative» (BRI), which was launched by China’s leader Xi Jinping in 2013. The BRI helped to fill numerous infrastructure gaps, but the United States and its partners increasingly paid attention to the geostrategic aspect of China’s actions. It’s no secret that the Belt and Road plays an important role in the development and integration of China’s provinces with neighboring countries. However, with the growing number of countries participating in the BRI, as well as the strengthening of China’s influence on a regional and global scale, criticism of the strategic tools for expanding Beijing’s economic influence gradually increased. The Belt and Road has faced a number of critical remarks, including those related to accusations of purposely involving the regional countries in the so-called «debt traps». Regardless of the degree of truthfulness or study of the issue, from year to year, media reports have contributed to the building of a contradictory attitude to China’s BRI among the residents, experts, and political elites all over the world.

Moreover, as soon as Donald Trump became the U.S. President in early 2017, Washington modified the nature of its policy towards China to greater confrontation. This trend has become a direct expression of the intensified great powers’ rivalry and their struggle for hegemony in the Indo-Pacific, as well as a motivation for the revival of the Quadrilateral Security Dialogue (Quad), which includes the United States, Australia, India and Japan. However, the interaction of the Quad has long been built on the basis of defence.

This trend continues nowadays, as evidenced by the frequent exercises and the growing Quad naval presence in the Indo-Pacific but in 2021 the Quad countries expanded their range of issues on a multilateral basis. Now the agenda includes vaccine diplomacy (providing 1 billion COVID-19 vaccines to Indo-Pacific countries, climate change, technological cooperation, maritime security, cybersecurity, and external development assistance. According to Kurt Campbell, Indo-Pacific policy coordinator at the National Security Council, Washington is looking to convene an in-person fall summit of leaders of the Quad countries with a focus on infrastructure in the face of the challenge from China.

Quadrilateral infrastructure diplomacy as the continuing vector of the Trump’s administration

The infrastructure agenda also became an important part of the last summit of the G7 countries’ leaders, during which the parties expressed their willingness to establish a BRI counterpart called Build Back Better World (B3W). In total, there are 22 mentions of infrastructure in the final G7 Summit Communiqué. Even despite the traditionally restrained position of India, which took the time to «study the specifics of the proposal», infrastructure diplomacy of Quad is becoming a new area of geostrategic competition in the Indo-Pacific.

There’s one exception: the activities on the infrastructure track are not a new trend of U.S. President Joe Biden’s administration, but a continuation of the foreign policy vector set during the presidency of Donald Trump. It was he who turned Sino-U.S. rivalry into a geo-economic level. Back in 2017, the Foreign Ministers of the Quad countries stated the need for high-quality infrastructure development in order to ensure freedom and openness of sea routes, as well as improve intra-regional ties. In 2018, MoU was signed between the US Overseas Private Investment Corporation (OPIC), the Japan Bank for International Cooperation (JBIC) and the Ministry of Foreign Affairs and Trade of Australia, aimed at implementing major infrastructure projects in the Indo-Pacific. Moreover, the Quad countries raised the question of the BRI countries’ growing debt during their official meeting in Singapore.

It was clear that the Belt and Road Initiative is perceived by the Quad countries as the main factor in expanding the economic and political influence of the People’s Republic of China, as well as China’s influence of the domestic political processes in the countries of Indo-Pacific. At the same time, the combination of economic and defence rivalry enforced on Beijing by Washington, as well as Quad’s efforts to build a balance of power in the region actually indicates the explicit anti-​China nature of the Quad.

In this case, it’s important to note that each of the Quad countries has its own levers of influence, which they can combine in infrastructure competition with Beijing. For example, in 2015, in response to the implementation of the Belt and Road Initiative and the establishment of the Asian Infrastructure Investment Bank (AIIB) by China, Japan made the Partnership for Quality Infrastructure (PQI). The United States, in turn, announced the infrastructure project Blue Dot Network (BDN), as well as the Ministry of Foreign Affairs and Trade of Australia established a new Partnerships for Infrastructure (P4I). All these initiatives are united by a commitment to inclusive economic growth, «quality infrastructure», climate change, disaster response, and social development. The capitalization of the Japanese, American and Australian initiatives is US $110 billion (US$50 billion from Japan and over US$50 from the Asian Development Bank), US$30-60 million, and US$383 thousand (including access to US$4 billion of foreign aid and $US2 billion from the Australian Infrastructure Financing Facility for the Pacific), respectively. Given the ongoing discussions about debt traps, the emphasis on «high-quality infrastructure» may give special features to the initiatives of the Quad but even the total amount of funding will not be able to compete with the US$770 billion investments already made in 138 countries of the world and announced by China.

Anyway, Quad is stepping up its infrastructure diplomacy in at least three areas, including Southeast Asia, Oceania, and the Indian Ocean. For example, Australia, Germany and Switzerland have already allocated US$13 million to the Mekong River Commission For Sustainable Development (MRC) to assist Cambodia, Laos, Thailand and, Vietnam «to respond to pressing challenges while safeguarding the ecological function of the Mekong River and improving people’s livelihoods».At the same time, Australia signed US$300 million MoU with Papua New Guinea, aimed at the ports reconstruction in the major state of Oceania (the ports of Vanimo, Kimbe, Motukea, Lorengau, Oro Bay, Daru, Lae, etc.). It is important to highlight that the increasing economic and infrastructural presence of China in the countries of Oceania, energize Australia’s policy in the South Pacific, which is a traditional zone of influence of Canberra. At the same time, the expansion of Australia’s aid and investment to the broader Indo-Pacific is due to the commitment of the current Australian government to the U.S. foreign policy.

In turn, the reaction of the Southeast Asian countries to the intensification of Quad infrastructure diplomacy will be more restrained. According to the latest Pew Research Center survey, the most unfavourable view of China is in the United States (76%), Canada (73%), Germany (71%), Japan (88%), Australia (78%), and South Korea (77%), while in Singapore — the only country representing ASEAN in the survey — the percentage of unfavourable views on China is at a low level (34%). Moreover, considering the aspects of infrastructure diplomacy in the region, we should definitely refer to the survey of the Center for Strategic and International Studies (CSIS) of the political elites of the region «Powers, Norms, and Institutions: The Future of the Indo-Pacific from a Southeast Asia Perspective», published in 2020. Despite the intentional exclusion of Russia from the survey, it approximately reflects the trends in the Indo-Pacific countries at the present stage. Thus, as a result of the survey, American experts revealed that the political elites of Southeast Asia positively assess China’s activities in the field of infrastructure development, which has brought tangible benefits to most Southeast Asian countries.

Beijing’s Response

China is actively reacting to verbal attacks from the United States and Quad. The infrastructure agenda was no exception, but China responded by modernizing its global Belt and Road Initiative. In response to criticism about the involvement of the countries in debt traps, Beijing has developed a new Foreign Policy White Paper «China’s International Development Cooperation in the New Era». The document was published in early 2021. According to the provisions of the new White Paper, China will pay closer attention to the process of implementing projects within the aid framework, take an active part in evaluating projects in order to monitor their quality, maintain an appropriate level of confidence in its projects to China, as well as conduct bilateral consultations to identify difficulties with debt repayment and make sure that partners do not fall into a debt trap. It’s possible that the new vision of the PRC will appear especially quickly in countries where the Quad will primarily try to implement their infrastructure projects.

China is the first country in the region, which pays significant attention to the issues of large-scale infrastructure development. Moreover, Beijing has a number of advantages over its opponent — Quad. First, the Belt and Road initiative is more structured and aimed at intensifying trade, economic, cultural and humanitarian cooperation with neighboring countries, while the emerging Quad infrastructure agenda is «dispersed» among numerous individual initiatives, doesn’t have the same level of stability as the BRI, and even after 3.5 years of building the agenda is considered through the prism of expectations.

Second, China’s initiative is aimed at a single infrastructure connection between the PRC and the rest of the world and acts as a potential basis for the intensification of global trade in the future. At the same time, today’s projects of the Quad are of a “sporadic» nature and can’t contribute to the infrastructure linkage between Europe, Africa, South and Southeast Asia on a global scale.

Third, China can already offer the Belt and Road members not only logistics infrastructure but also the opportunities in the field of green energy. At the end of 2019, China produced about a third of the world’s solar energy and retained a leading position in the number of wind turbines. Within the foreseeable future, the Quad countries, and especially the United States, will have to compete with China even in the field of the climate agenda, which is so close to the new administration of the U.S. President Joe Biden.

Finally, during his recent speech on the occasion of the 100th anniversary of the Chinese Communist Party (​CCP), PRC’s Leader Xi Jinping confidently declared the great revival of the Chinese nation, its contribution to the progress of human civilization, and its readiness to build a new world, which undoubtedly indicates China’s decisiveness to respond to challenges to its address, including from the Quad.

Conclusion

The ongoing transformation of the regional architecture in the Indo-Pacific, both in the defence and economic areas, will be an important aspect in the post-pandemic era. China has repeatedly stated about the «covered» Quad activities to deterrence Chinese policy in the region, but the expansion of the Quad’s agenda by infrastructure diplomacy allows us to speak about the evident vector of the Quad strategy against the PRC.

However, nowadays the Quad countries had been left behind. China already has the world’s most numerous land forces, the largest navy, as well as an ambitious global Belt and Road initiative that includes almost 140 countries and a capitalization approaching US$1 trillion. Of course, Quad is moving towards the institutionalization of its infrastructure cooperation and the potential expansion of the number of participating countries to the Quad Plus format. However, to reach China’s achievements for the period 2013-2021, the new alliance will need at least a decade.

At the same time, the rivalry of the Belt and Road with the Quad’s infrastructure initiative will help the countries of the region to diversify their infrastructure ties but will make their choice even more difficult, since it will primarily be regarded as support for the foreign policy vision of one of the parties, and not a pragmatic estimate of economic benefits. All this makes the regional environment in the Indo-Pacific increasingly complex and forces middle powers and smaller countries to adapt to new geostrategic realities.

From our partner International Affairs

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Bushido Spirit Resurrected? Japan publicly bared its swords against China

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Recently, Japan’s Deputy Prime Minister Taro Aso declared that Japan will join forces with the US to “protect Taiwan.” There has been a lot of turmoil, but even though the US directly announced that it will follow the “One China policy,” Japan has not given up its secret intentions. Japan’s new “Defense White Paper,” which was just approved, not only continued to link the US, but also displayed greater animosity toward China.

The Japanese government just finished the 2021 version of the “Defense White Paper,” according to the Global Times, but both the cover and the substance of the white paper are full of “provocative” meaning. The first is the front cover. According to the image released by Japanese media, the cover of Japan’s new “Defense White Paper” is an ink drawing of a warrior on horseback. According to a spokesperson for Japan’s Ministry of Defense, the horse samurai on the cover represents the Japanese Self-Defense Force’s commitment to defend Japan. However, after seeing it, some Japanese netizens said that it was “extremely powerful in fighting spirit.”

From a content standpoint, the white paper keeps the substance of advocating “China menace,” talking about China’s military might, aircraft carriers, Diaoyu Islands, and so on, and also includes the significance of “Taiwan stability” for the first time. A new chapter on Sino-US ties is also included in the white paper. According to the Associated Press, the United States is expanding its assistance for the Taiwan region, while China is increasing its military actions in the region. This necessitates Japan paying attention to it with a “crisis mindset.”

Japan has recently grown more daring and rampant, thanks to a warlike cover and material that provokes China and is linked to the US. Japan has recently bared its swords against China on several occasions.

Not only did Japanese Prime Minister Yoshihide Suga take the lead in referring to the Taiwan region as a “country,” but after meeting US President Biden, he issued a joint statement referring to the Taiwan region, and tried his best to exaggerate maritime issues such as the East China Sea and the South China Sea, and Japanese Deputy Prime Minister Taro Aso, Defense Minister Nobuo Kishi, Deputy Defense Mizuho, and Deputy Defense Mizuho. It has all made inappropriate statements on Taiwan and publicly attacked the “One China Principle.”

After China clearly voiced its disapproval, Japan not only refused to be constrained, but actively increased its antagonism toward China. Do they truly believe China is simple to provoke? The tensions between China and Japan will undoubtedly worsen as a result of Japan’s publishing of this white paper. Although Japan has the bravery to provoke, it lacks the guts to initiate an armed war with China. After all, even the United States, on which they have traditionally counted, would not dare.

It is simple to employ force against China, and if the Japanese Self-Defense Force want to fight the People’s Liberation Army, it is preferable for them to be prepared for any catastrophic outcomes. Furthermore, China has long been Japan’s most important commercial partner. Even with Japan’s sluggish economy, they should be wary of challenging China. If they refuse to examine this, China may let them face the consequences of economics and trade.

Furthermore, the US has declared unequivocally that it will pursue the “One China Policy” and has intimated that it will not “protect Taiwan” with Japan. The stance of the United States demonstrates that, despite Japan’s determination to constrain China on the Taiwan problem and invitation to the United States to join in “safeguarding Taiwan and defending Japan,” the United States is hesitant to offer such refuge to Japan. As a result, Japan should be clear about its own place in the heart of the United States and attach itself to the United States, although it may be beaten by the United States again in the end.

In reaction to this event, the Hong Kong media stated that Japan should focus on making friends and generating money rather than intervening in Taiwan’s affairs, saying that “provoking Beijing is a fool’s errand.” As a result, if Japan continues to challenge China, they will be exposed as a total fool. And how good will a fool do in a game between countries?

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Hong Kong Issues & the Impact on China’s Domestic Politics

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Hong Kong after years under British colony was handed over to China after the leash period was over and China being the governing state swore that it will protect the uniqueness of Hong Kong and let it function under its established capitalist system under “one state, two system” policy for the period of 50 years. These 50 years ensure Hong Kong to enjoy the freedom under the China security Umbrella. In contrast to China, the Hong Kong political system consist of multiple parties. Some of these political parties fall under the Pro-democratic camp as they supports the positive reforms in democracy. The other camp is of Pro-establishment, they are known for their support for the mainland China as they consist of basically people from the business sector. In the Hong Kong the Pro-Business supporter or pro establishment are known to be more of the dominant group because of their relation with the China but they have less support of the voter in contrast to the Pro-democratic camp.

Though in the wake of the recent Issues and the conflict with the mainland China it seems that the promises that were made at the time of handover are just fading away. Recently China decided to take some bold steps as it decided to intrude and intervene in the political system practiced In the Hong Kong which seems to a crackdown by Mainland China against its opposition. These audacious step of China triggered the massive protest in the Hong Kong driving international attention and Condemnation. What prompted and highlighted the situation more was when China in 2020 passed a national security bill and implemented an extremely comprehensive definitions for crimes such as terrorism, subversion, secession, and collusion with external powers. This bill was said to be controversial as it was a strain for the Hong Kong to establish itself as a full democracy. China also further accelerated the situation by arresting many pro-democracy activist and lawmakers which were protesting against the bill. What factors lead China take such steps was when the political groups in Hong Kong became more radical and formed Anti-Beijing parties threating the China Position and its control over the Hong Kong?  Student and youngster took the street to protest for the establishment of the political system that is more democratic in nature, starting to call themselves Hong Kong Nationals rather than identifying themselves as Chinese National.  Several of these groups separated in 2020, as Beijing cracked down on political opposition. This all threaten the Chinese position and control over the Hong Kong and its political setup. These steps by Mainland China have hushed many Hong Kong citizens who was fighting for democracy and encouraged others to abandon their lifestyle and escape the city.

If we see the motivation of the China Communist Party after consolidating power was to ensure and invest on the stability, CCP does everything and take every measure they have to in order to preserve the Stability of the Country so for this purpose most of the spending by the party was for the stability that is on the police system, training centers and national defense system that ensure the preservance of stability internally. If we study the CCP history, the power tenure of Xi Jinxing was clearly marked with the same preservance of stability as well as consolidation of power. He did it by benefitting those who were loyal to his leadership for example the pro-business man group in Hong Kong or Pro establishment camp. He sidelined those who were in the opposition as he did with the Pro-democratic wing that were protesting in the Hong Kong. China while introducing the National Security bill right after the massive protest did fuel the situation but it is also clear that China was somehow successful in inflaming the nationalism among people and pitting it against those who ever criticizing in and out of the country. China used the coincidental and the inflamed nationalism for its own benefit. Xi Jinxing handling of situation by doing massive arrest and crack downs on the opposition clearly reflects that regardless CCP and the XI jinxing knowing that such move will prove to be disastrous either seen from the diplomatic, geopolitical of economic lenses still go for it. It shows that the leaders only cared about the political requirements and reinforce inner control ignoring the damages it can have on the geopolitical or the economic situation of the country. All over in the history it had been debated that one day Chinese leadership might implement an aggressive foreign policy or even go for a war just for the sake to distract the public and international attention from their domestic issues. Hong Kong offered that very opportunity that could benefit the Chinese leadership, but without the risks and costs of a war. So I must say the situation handled by the Xi Jinxing was merely motivation but the thirst for consolidating power over Hong Kong rather than benefitting either of the mainland China or Hong Kong.

This situation had also impacted the internal politics of the China both diplomatically as well as economically. Diplomatic in a sense that the world had witnessed the massive protest in Hong Kong and a little later China decided to implement the National security Bill just gathered the Attention of the supranational actors and countries. Due to the Pandemic and its origination from China, it was exposed to the world and all the things happening in China was keenly observed. In such a scenario taking such rigid steps brought the world Attention not in the favor of the Country. Admits the Pandemic as well as the crackdown many countries including USA start to reinvent their policies for China. It was a great chance for the Rivals of China to hit it where it hurts. As Hong Kong served as a great technological hub for the China, deteriorating situation and implementation of such broad definition of terrorism compel many business to close down or relocate themselves thus negatively impacting the already crumbling economy due to pandemic. For example the head office of New York Times announced its relocation to Seoul amidst the deteriorating situation in the Hong Kong. Other than that many technological firms relocated themselves as there were facing restriction and censorship in their activities from China.  This happened due to the constant threat of arrest if they did not comply with the demands and the instruction given by the authorities. So Hong Kong issue and the handling of it by the Chinese Government did have many repercussion for the domestic politics of the China. If China keep following on this step and keep seeing Hong through thorough the Nationalist perspective it will Sabotage China Fight for freedom at the larger scale and Hong Kong will time to time rise up again to mold the domestic narrative build by the China and to break its monopoly, which will be a constant threat to China.

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