Business

Hong Kong Protests Create Ripple Effect Across The Global Economy

(shutterstock_PaulWong)

Paulina Likos Contributor

The enduring protests and strikes in Hong Kong are making it increasingly difficult to do business with companies regionally and internationally.

As a result of these ongoing protests, there have been a number of sectors that have been negatively impacted in domestic China and abroad. Demonstrations have closed stores down and rattled China’s financial and transportation systems, leading to the cancellation of more than 150 airline flights, further impeding financial growth on a global scale. Airlines are reportedly understaffed with workers going on strike.

Retail stores selling Disney products and luxury brands have seen a decline in sales and one of Hong Kong’s largest banks, HSBC, has closed several of its branches. Chief Financial Officer of HSBC, Edward Stevenson cautioned that companies can suffer deeper effects if the protests continue.

Multiple countries have warned their citizens planning to travel to Hong Kong. Hong Kong’s International Airport closed, which has affected tourist travel. They released a statement saying, strikes have “seriously disrupted” airport operations.

Hong Kong executives from some of the largest companies there have expressed concern about future earnings and predict losses in revenue. 

“The broader economic stability of Hong Kong” could have dire ramifications, CEO of Hongkong and Shanghai hotels, Clement Kwok King-man, reportedly said. (RELATED: China’s Central Bank Reportedly Will Be Ready To Release Its Own Digital Currency Soon)

Business leaders have spoken out against the rise in protests.

“We strongly condemn the escalating violence which has affected Hong Kong over the last few weeks. It has not only affected Hong Kong’s reputation as an international financial center, but also the small and medium size enterprises and most importantly undermined the safety and livelihood of ordinary Hong Kong people,” reads a press release from Hong Kong’s General Chamber Of Commerce last week. (RELATED: China Trying To Stem Economic Slowdown, Failing)

The proposal to allow extradition of people from Hong Kong to mainland China gave rise to protests and as people kept amassing, the purpose of the demonstrations broadened to fighting for greater democracy in the country. On top of the protests, trade disputes between China and the U.S. have also negatively influenced their economy, according to Nikkei Asia Review.

A store owner in Hong Kong reacted to the violent demonstrations.

“The trade war was bad enough, but the protests are even worse, the government should urgently open a dialogue with protesters to resolve the conflicts, whereas society should listen more and judge less.” Wong, the business owner, reportedly said.