"In the fifteen years since the handover, there have been a number of official initiatives aimed at improving Beijing`s control in a way that would undermine both autonomy and the rule of law," Michael C. Davis writes in his book Making Hong Kong China. Australia has a direct and general interest in the successful transfer of sovereignty to Hong Kong. Hong Kong`s importance to Australia`s trade and investment flows gives Australia a vested interest in maintaining healthy economic growth in the region. Australia cannot afford political turmoil during or after the handover or a loss of confidence in the local or international business community. The Hong Kong issue is, of course, closely linked to Australia`s relationship with China, one of the country`s largest but often difficult relations, which inevitably has implications for important regional ties such as the US and Japan. State media, which silenced protests for weeks, erupted. The People`s Daily, the Communist Party`s main newspaper, said the incident "shamelessly challenged the authority of the central government" and "crossed a red line," reflecting Xi`s warning two years earlier. "The things that China found irritating about Hong Kong became more important, and the things they found attractive about Hong Kong became less important, and frictions built up over time," he said. With a younger generation increasingly politicized, most observers expect an uphill political battle for the city`s future. On his first trip outside mainland China since the pandemic began, he vowed that "one country, two systems," a model of government under which Hong Kong was to retain its autonomy and freedoms for 50 years, would endure. For Beijing, the decisive moment seemed to arrive on the night of July 21, 2019.
Hundreds of protesters besieged the Central Liaison Office, China`s main branch in Hong Kong, and splattered the red and gold Chinese national emblem above the entrance with black ink. Although it appears that maintaining separate economic relations with the Hong Kong Special Administrative Region will not pose any problems to Australia`s relations with China, there is a risk of controversy over political and human rights issues that may well arise after 1997. This was already evident in the issue of China`s establishment of an appointed Provisional Legislative Council and Australia`s participation in its opening ceremony on 1 July 1997. The British government criticized China`s actions in establishing the new council as a violation of the Joint Declaration and the Basic Law, and the U.S. State Department called the move "unjustified and unnecessary." (34) However, Australia`s reaction was muted: Foreign Secretary Alexander Downer said it was "disappointing that China and the UK could not agree" on arrangements allowing the elected Legco to proceed during the handover period. (35) The United States and the United Kingdom also announced that they would not be officially represented at the ceremony until the Australian Government decided to attend. There is no sign that other countries in the region, such as Japan or ASEAN members, or any other European country will boycott the ceremony. Many Hong Kong leaders, including members of the elected Legco, fear that little stands in the way of a gradual erosion of civil liberties and access to remedies, both because of China`s intentions and the reluctance of Hong Kong`s powerful business interests to resist. China`s top leaders have expressed discomfort with an environment of free criticism, including Foreign Minister Qian Qichen, who said in October 1996 that the media could "bring criticism, but not rumors or lies. Nor can they personally attack China`s leaders.
(25) Given this attitude, many businessmen are reluctant to risk the investment climate in Hong Kong by angering China on human rights issues. The president of the Hong Kong General Chamber of Commerce, for example, reportedly observed that businesses are "concerned about the rule of law in foreign disputes, not student protests and demonstrations." (26) Some argue that signs of decline can already be seen in a slow infusion of self-censorship in the territory`s media, as major media owners appoint pro-Beijing advisers to advise on likely official responses to reports on sensitive issues, and China`s previously harsh criticism remains silent. (27) In a widely publicized case, a satirical comic strip published in the South China Morning Post, "The World of Lily Wong", commenting on China and its leaders, was removed from the newspaper in 1995. (28) The question arises as to whether these developments are only temporary uncertainty on both sides or whether they represent the beginning of a serious and lasting change.