As you all may know the current politic issue between China and Hong Kong on the protest about the future territory. Cantonese people accused China for seriously assaulting Hong Kong’s tradition of rule of law, disrupting Hong Kong’s social order, and affecting the lives of the Hong Kong public.”

This incident seems to be effecting the politics aspect between the two countries. However, this also effects on the economic aspects. Being at a deadlock between them will definitely affect on their relationships, hence, economic wise, their “partnership” (as an example) in GDP will be separated. According to CBC News, up to 2/3 of the international investment in China was from Hong Kong. This means that China’s GDP will be significantly effected if Hong Kong’s protest succeeded.

However, even though the downside for China will have a decrease in profit in the short-run, as the country is becoming a developed country, the economic in the long-term will keep on increasing even without Hong Kong’s support. In my opinion, Hong Kong may face a bigger problem of having a higher risk than China since China spreads their risks domestically and internationally. It is like a corporation who is already very strong internally and are still expanding externally, if one of the company fails, it won’t effect the company as severely comparing with a company that are not strong internally. Considering that most of the agricultural goods depends on China, Hong Kong may face some even bigger issues than what China might face in the future.

Sources:
http://www.businessweek.com/articles/2014-10-02/hong-kong-protests-peoples-daily-signals-hard-line-on-demonstrators

http://www.cbc.ca/news/business/why-china-might-be-willing-to-sacrifice-hong-kong-s-economy-don-pittis-1.2784555