Time to Get Out of Hong Kong!
Hong Kong’s future is now clearly tied to the communist ideology and unilateral decision making power of The Chinese Communist Party. For those with interests in Hong Kong, this presents undeniable and considerable risks that must be swiftly mitigated. At Global Gold, we are in the process of getting our clients with storage in Hong Kong transferred out to safer shores. Hong Kong is no longer what it used to be.
Hong Kong was one of the world's leading financial centers and has long prospered thanks to its links with mainland China, a strong rule of law in business matters, low personal and business tax rates and its open economy. Since the UK transferred sovereignty to China in 1997, the territory’s autonomous nature has enabled it to ride on the crest of China’s economic development.
The Hong Kong we knew is dead!
Hong Kong continues to act as an intermediate jurisdiction for much of the personal investment capital flowing out of China. But, at this point, the independence of Hong Kong has given way to the communist will and power of Beijing. The demonstrations we witness are the last battles in a war that’s already been lost.
As we have alerted you over the past few years, things have been changing rapidly in Hong Kong, and at this point, we strongly advise our clients still holding precious metals at our storage facilities in Hong Kong to transfer those holdings to politically safer jurisdictions. The new Chinese-orchestrated security law spells the demise of this global financial center and converts Hong Kong into a vault for mainland China.
Communism is not love. Communism is a hammer which we use to crush the enemy. ~ Mao Zedong
Hong Kong’s handover to China, in 1997, came with celebrations, fireworks, and the expectation that this former British colony would enjoy ‘a high degree of autonomy’ for at least the next 50 years, a status guaranteed by the Sino-British Joint Declaration.
However, only 23 years later, Hong Kong’s second handover to China has just been conducted, coercively and in flagrant disregard of the conditions that were agreed upon in the Joint Declaration. The draconian new national security law is a reflection of the very core of communist values: the censorship of free speech and the policing of public discourse. It has resulted in months of protests, all to no avail. Many Hongkongers have now realized their defeat.
Fearful citizens are in the process of deleting their Twitter accounts. Political parties are disbanding. And a growing number are fleeing abroad. Beijing’s Communist Party rulers selected the exact anniversary of the handover, midnight on June 30th, to impose their new security law on Hong Kong and unveil its strictures on an unwilling population.
After 23 years, China seems to be publicly affirming that the ‘one country, two systems’ experiment has failed and that Hongkongers were not sufficiently imbued with a patriotic love of the motherland and its authoritarian communist one-party system.
Communism does not tolerate individual freedom
The range of freedom and the taste of democracy of the past 23 years are now being summarily revoked. Soon, Hong Kong residents will be subjected to the same sweeping constraints on their liberties as any Chinese citizen living on the mainland. All hopes for a different outcome are, in our view, naïve and lack the understanding of how communism works. It only works through the coercive and total submission to a single, collectivist narrative, established and enforced by one party.
The new “security” law establishes an entirely new infrastructure in Hong Kong to enforce a Chinese national regime. Beijing will set up a national security agency in Hong Kong, which will operate independently and as it sees fit. China’s agents operating in Hong Kong, with special ID cards, and their vehicles, ‘shall not be subject to inspection, search or detention’ by local Hong Kong police. They are above the law.
As we all know from George Orwell’s “Animal Farm”: “All animals are equal. However, some animals are more equal than others…” Communism is an ugly and destructive system. It does not bode well for the western world that so many young people today seem to like this system better than the freedoms they currently enjoy. Marxism is back. And it is gaining traction, bit by bit!