Zhou Bajun argues that the SAR needs to adjust its economic relationship with the mainland and the West, while also addressing the divisive political climate in the city

On April 29, the State Council announced it would cut tariffs on some popular imported goods as part of plans to "boost domestic consumption, sustain growth and restructure the economy". The plan includes opening more duty-free stores near the border and lifting purchasing restrictions on individual tourists. This will boost the mainland's domestic spending, but it might also have a negative impact on Hong Kong's struggling retail sector.

Hong Kong, as a zero-tariff region, is the "best shopping city" for many mainland buyers. Over the past decade mainlanders have purchased everything from foreign toiletries to cosmetics and handbags and accounted for a large part of the city's retail sales. Yet mainland visitor numbers began falling earlier this year. According to official entry figures, March showed a 10 percent decline compared with a year ago. As a result, Hong Kong's retail sector is struggling.

One of the main causes for the sharp decline in mainland visitors to the SAR is, of course, the hostility they have been shown by certain Hong Kong people. Since late 2014 the opposition camp has launched an anti-parallel trading campaign which sent the wrong signals to mainlanders: They are no longer welcome in Hong Kong.

But people need to realize that the SAR economy is already integrated with the mainland to such an extent that there can be no turning back. Soon, not only mainland policy adjustments, such as tariff cuts, but also Hong Kong people's attitudes to mainlanders will have an ever greater impact on the local economy. Some Hong Kong people clearly still have problems interacting with mainlanders. This is mainly because they don't know much about the nation. They are overexposed to Western culture; some really believe the West is superior to the East.

Hong Kong's humble beginnings as a small entrept resulted in successive generations of locals becoming dependent on parallel trading as their main source of income. It has become such an integral part of people's lives that the majority of Hong Kong people take it for granted. This explains the lack of protests of any kind against parallel trading prior to 1997. In the past decade or so, some mainlanders have become parallel traders by taking advantage of multi-entry permits. The opposition camp exploited this to its advantage and managed to sow the seeds of hatred in the hearts of some local people. They organized the illegal harassment of innocent people and used opposition to parallel trading as an excuse. By targeting mainland tourists, the organizers of these illegal acts appear to be attempting to reverse economic integration. These tactics certainly did not help their demands for "genuine universal suffrage".

Why is it so hard for Hong Kong to achieve universal suffrage according to its own laws as a special administrative region of the People's Republic of China? One reason is Western political concepts remain dominant in Hong Kong.

However, since entering the 21st century the world has been experiencing a comprehensive restructuring it has not seen since the end of the "Middle Ages".

The global focal point is shifting from the West to the East. At the recent Asian-African Summit held in Indonesia, Indonesian President Joko Widodo said those who still insisted that only the World Bank, the International Monetary Fund and Asian Development Bank could solve global economic problems had outdated views. It is imperative to reshape the international economic and political order and align it more with the emerging economies - particularly with China's. That is why the Asian Infrastructure Investment Bank has received so much support from around the world. That is also why outdated Western ideology needs to be revised. Hong Kong, amid such a profound historical transformation, has to reposition itself between the West and East both economically and politically.

In Hong Kong, the fight for universal suffrage is a part of the global political game between some Western countries and China. The US government has commenced a strategic campaign named "pivot to Asia". It aims to counter the rise of China. Introducing Western democracy into Hong Kong is one of the political tactics of this campaign.

What should Hong Kong do? Even in economic exchanges between the mainland and the outside world Hong Kong is no longer the "super connecter" it once was. Other cities like Shanghai, Beijing, Tianjin and Guangzhou all have established deep economic connections with foreign countries. Second, having gone so far in the economic integration with the mainland over the past three decades or so, Hong Kong is no longer an independent economic entity between the East and West. Third, global funds and skilled people have been flocking to the mainland, so much so Hong Kong has to act as a conduit channeling more capital and expertise to the mainland.

While the SAR should adjust its economic relationship with the mainland and the West, the political climate in the city also needs to change. Hong Kong is now stuck somewhere in the middle of this. The city's economic and political links to the mainland are not in harmony. Hong Kong society is torn over the government's proposals for constitutional reform. Many Hong Kong people have yet to realize the SAR's constitutional development should strictly adhere to the Basic Law and relevant decisions of the Standing Committee of the National People's Congress.

(HK Edition 05/07/2015 page10)