Angry China threatens Hong Kong and Australia

And anyone else within earshot. Via the New Daily:

China has threatened unspecified “countermeasures” if the United States goes ahead with plans to deploy ground-based missiles in the Asia-Pacific region, with a specific warning for Australia.

“China will not stand idly by and will be forced to take countermeasures should the US deploy intermediate-range ground-based missiles in this part of the world,” the Chinese foreign ministry’s director of arms control, Fu Cong, said.

“We also call on our neighbours, our neighbouring countries, to exercise prudence and not to allow a US deployment of its intermediate-range missiles on [their] territory,” Mr Fu was quoted as saying by AFP, naming Australia, Japan and South Korea.

“That would not serve the national security interest of these countries,” he said.

The warning comes a day after Defence Minister Linda Reynolds ruled out the possibility of the missiles being deployed in Australia.

Those reprisals will be cutting off tourism and students, which is what Angry China did to South Korea when it added US missiles. I think that those trades are likely to fade away anyway as China goes ex-growth, CNY collapses and the capital account shuts.

But it was Hong Kong that took the brunt of Angry China, at the ABC:

Chinese officials have urged protesters across Hong Kong not to mistake Beijing’s “restraint” for weakness, as violent anti-government protests enter their third month and show no sign of abating.

On Tuesday, China’s State Council Hong Kong and Macau Affairs Office held its second press conference on the protests in just over a week, with spokesman Yang Guang and spokeswoman Xu Luying saying it was “only a matter of time” before those who were behind the protest movement faced punishment.

“I would like to warn all of the criminals: don’t ever misjudge the situation and mistake our restraint for weakness,” their statement said.

A small group of violent radicals were at the forefront of the protests, with “some kind-hearted citizens who have been misguided and coerced to join” in the middle, they said, adding that anti-China forces were the “behind-the-scenes masterminds” who had “openly and brazenly emboldened” the protesters.

Mr Yang singled out “brazen, violent and criminal actors” and the “meddling hands behind the scenes” as the focus of law enforcement efforts, which indicates Beijing will take a hard line against the protests and has no plans to open a dialogue on activists’ demands for political reforms.

He also called on Hong Kong citizens to turn on the protesters by refusing to accept their promotional materials and opposing disruptions to public transport.

The council is struggling to contain the ongoing protests, which were sparked in March over the now-withdrawn extradition bill with China, which many feared would have allowed Beijing to silence dissidents.

The anti-government protests have continued and now encompass broader demands around democracy and government accountability.

Police on Monday fired tear gas at protesters after a general strike hit transport and the city’s Beijing-backed leader warned its prosperity was at risk.

The amount of violence and property damage has increased in recent protests, with 10 people injured last week when fireworks were shot from a moving car into a crowd of pro-democracy activists.

More than 40 people faced a Hong Kong court last week, charged with rioting for their role in a recent protest that turned violent when thousands of activists clashed with police near Beijing’s main representative office in the city.

Fears over military intervention

Like the other press conference in the past week, Chinese officials condemned protesters and voiced their support for pro-Beijing Hong Kong leader Carrie Lam, who protesters want to step down.

“We call on people from all walks of life in Hong Kong to unequivocally oppose and resist violence,” Mr Yang said on July 29, when he also labelled protesters “evil’ and “criminals”.

“No civilised sociality under the rule of law would ever allow acts of violence to take place.”

There has been growing speculation that the Chinese Government will send in the People’s Liberation Army (PLA) to combat the protesters.

When asked during the first press conference under what circumstances PLA could intervene, Mr Yang referred to Hong Kong’s mini constitution, known as the Basic Law, which states that the Hong Kong government can ask the PLA garrison in the city to help maintain order.

Legal scholars have described that as a high threshold.

On August 1, the PLA’s Hong Kong garrison released a video demonstrating anti-riot drills which included troops firing guns and rockets, and of light tanks, attack helicopters and missile launchers.

Protesters hold own press conference

Just before the council spoke to reporters, a group of anonymous protesters — who wore masks to protect their identities — held their own press conference, in which they condemned what they said was the Government’s “empty rhetoric”.

Many protesters have chosen to hide their identities because they fear official retribution.

In what they called the inaugural People’s Press Conference, they accused police of showing a “total lack of self-discipline”, adding some tear gas was fired on residential buildings during clashes across several districts on Monday.

The protesters apologised for inconvenience caused by Monday’s general strike which paralysed regular workday operations in the city. Major roads and public transit lines were blocked, while at least 77 flights out of the airport were cancelled.

Bill Bishop is on the money at Sinocism:

The central government’s Hong Kong and Macau Affairs Office held a press conference Tuesday. The warnings from Beijing are growing stronger but they are still holding back direct threats of PLA/People’s Armed Police intervention while continuing to affirm confidence in Carrie Lam and the Hong Kong police. Beijing may have decided the best way to diffuse the current situation is to demonstrate to most Hong Kong citizens the economic costs of continued protests, while aggressively following the CCP playbook and arresting a “small group of radicals” they blame for fomenting the protests, and hoping things will calm down in the next few weeks as students return to school. Do not be surprised to see cancellations of mainland tour travel to Hong Kong.

Will such an approach work? I do not know, it certainly will not address the underlying causes of the protests and may even inflame them further, but Beijing I believe/hope understands that sending in the PLA or the PAP would be a disaster on so many levels and therefore will try many things before resorting to that awful option, especially between now and the October 1 celebration of the 70th anniversary of the founding of the PRC.

It will be the end China’s globalisation phase and accelerate its decline. It is mad if it does not sack the provincial government.

But who knows as a highly defensive Angry China lashes all.

David Llewellyn-Smith

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

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Comments

  1. Getting desperate, watching their power slip away, their influence wilting, I’m loving every minute of it.

    All those billions invested in poor countries for OBOR, why would they pay them back, you going to invade Africa, the middle east? Might as well write them off as bad debt. So broken, good riddance.

    • haha, whatevs u smoke it is potent mate…

      US ended INF with Ruskies which kept arms race at bay to allow militarisation of the front door of China (Cuban crisis in reverse?) and chances of you and your children being obliterated in a nuke retaliation are raising exponentially by a minute… only a jester will cheer.
      Lemme join u:
      yeeeeee…. (in muted frightened sound)

  2. The interview on The World last night with Daniel Russel was excellent.
    Watch it. It’s still on the abc 24 website.

  3. Complex Carbon Unit

    Chinese when they don’t get their way are like angry Bull Ants, the only way to stop them is to crush them and get out the super strong killer, even then some might get back up and start attacking again !!!

  4. Xi is losing it.
    The down side to building a cult of sycophantic yes-men is that they resonate your echo-chamber madness without ever daring shut it down.

    Tick tick tick…

  5. SoMPLSBoyMEMBER

    “Oh, East is East, and West is West, and never the twain shall meet,
    Till Earth and Sky stand presently at God’s great Judgment Seat;
    But there is neither East nor West, Border, nor Breed, nor Birth,
    When two strong men stand face to face,
    tho’ they come from the ends of the earth!”
    R Kipling

  6. “Those reprisals will be cutting off tourism and students, which is what Angry China did to South Korea …”
    Can we point our US missles at India, Pakistan, Nepal and Ireland too in the hope they reduce their numbers?

  7. Get ready for nuts…
    https://www.bbc.com/news/business-49230568
    From https://twitter.com/BaldingsWorld/status/1158730683725967360- The CEO of HSBC was fired yesterday and the rumor is this: the BOE found out that they were lending to the PBOC to prop up the currency.
    1. Rumored number is $400b USD
    2. Secondary source inside HSBC says “don’t think that number is right”
    3. Other source thinks other European banks involved
    4. Timeline matches growing discrepancy between official and and estimated adjusted FX reserves according to another source
    5. One wouldn’t confirm details but acknowledged “big secret deal” with China

    If even partly true it confirms that China has been borrowing in HK to back fill its reserves and indicates that China is closer to a forced Yuan deval than thought.

    Implications for the Australian economy are huge. Big Yuan deval = no more tourists and students and AUD collapse.

  8. “China reprisals to Australia ” = less Chinese foreign student & tourist?

    Good ✔️
    A massive economic & social burden to Australia removed.

    The illegally working criminal & vice ‘foreign students’ and the ‘tourists‘ trafficked in thru our broken borders and massive visa rackets.

    1.361 million Chinese mainland born communists onshore in Australia.
    1.213 million as non Australian Chinese Nationals on Chinese passports.

    -/-

    ▫️238,000 Chinese mainland born communists as citizen grants/ Australia passports / their old, sick, useless & the hard core communists as the first wave of the ‘South Guangzhou’ colonisation of Australia. Many here a decade or more, no assimilation, no English, Chinese only enclaves.
    A social, healthcare & welfare burden.

    ▫️483,000 as Chinese Nationals on Chinese passports but granted PR – the old, sick, useless misfit Hukuo underclass exported from the Chinese tier 1 cities to be our welfare & Medicare burden. No English no assimilation, no pretence of a contribution, only here to steal as China First communist colonists.
    A massive social, healthcare & welfare burden.

    ▫️340,000 TR (of the 1.8 million TR) Chinese mainland born communists on Chinese passports as fake students or partners, fake skilled, fake regional, fake whatever visas – also the Hukou underclass trafficked in to work illegally or in vice. A massive social and economic burden.

    ▫️130,000 Chinese mainland born communists as NZ SCV (of 696,000) trafficked in via the NZ SCV passport stamp loophole, NZ being one of the ‘stepping stone’ routes to get into Australia. Another social & economic burden.

    ▫️Another 150,000 or more Chinese mainland born communists on Chinese passports as illegally working & living tourist & visitor visa holders. (Of 440,000 or 5% of the 8.8 million Chinese Indian etc so called tourist visitors working illegally- Aust Parliamentary submission) Long stay & repeat stay.
    A social and economic burden.

    ▫️Plus at least 20,000 Chinese mainland born communists as overstayers. (Of 65,000), same.

    -/-

    => That’s 1.36 million Chinese mainland born communists in Australia of which over 1.1 million are non Australian citizens as Chinese 🇨🇳China First🇨🇳mainland born communists.

    90% or 1.2 million Chinese mainland born communists in just 2 cities – Sydney & Melbourne, in vast Chinese only non assimilated slums.

    Of which at least 1 million who should never have been allowed in.

    These Chinese destroy jobs, wages, housing, education, our infrastructure, social amenity, the environment, congestion & overload our water & electricity.

    They are the epi-centre of foreign run criminal activities in vice, drugs. crime, money laundering & black market. They corrupt our politicians and have no loyalty to Australia, only China.

    They are a social, economic, political & security threat to all Australians.

    Time to get the internment & deportation camps ready.

    • What, no mention of 11mil illegal Indians and 2mil illegal Fijians?

      Mikey, are you developing soft spots?

      • 5 million. Non Australian. Onshore. Easily checked.

        🇨🇳1.3 million Chinese mainland born communists.
        🇮🇳 1.2 million Indians/Pak/Bangla across the same visa categoriesrackets.
        1.1 million South & non Chinese north Asian.
        1.4 million Middle Eastern, Pacific, African etc.

        We have 5 million third world non assimilating unskilled lowlife non Australians onshore.

        Cross check by visa group.
        1.91 million PR
        2.561 million TR
        440k TV illegally working Tourist & visitors Visa holders
        65k overstayers
        => 5 million non Australians onshore.

        Same foreign government & foreign criminal syndicates collusion in slum clearance & rurals to be trafficked into Australia.
        Their lowlife, criminals & socially undesirable sent here to be our burden.
        The same deportation action is required.