Hong Kong Magnifies China’s Bigger Challenge—Taiwan

In light of Hong Kong protests and other complex and “provocative” events, China warns US to “be prudent” about Taiwan

Protesters display placards during a demonstration in support of the continuing protests taking place in Hong Kong against a controversial extradition law proposal in Taipei, on June 16, 2019. Sam Yeh/AFP/Getty Images

The Hong Kong protests are raising already elevated tensions between the United States and China. But China’s biggest concern isn’t actually Hong Kong. It’s not the painful U.S. tariffs, the costly ban on Huawei network equipment, or even the United States’ diplomatic support for the protesters.

All of these policies have certainly added considerable friction to Sino–U.S. relations, but the deepening U.S. relationship with Taiwan is their biggest worry. The Hong Kong situation and Taiwan aren’t directly related, but each definitely affects the other.

China Needs Hong Kong as Financial Gateway

On the one hand, Chinese leader Xi Jinping can’t afford to damage the critical financial and diplomatic benefits that Hong Kong provides Beijing and the Chinese economy. Hong Kong remains China’s primary gateway to global financial and trade relationships.