London Daily

Focus on the big picture.
Wednesday, Sep 23, 2026

Sandwiched between superpowers: Is Hong Kong just a pawn in US-China rivalry?

Sandwiched between superpowers: Is Hong Kong just a pawn in US-China rivalry?

The United States and China are unlikely to undermine Hong Kong’s position as the world’s leading financial center in their high stakes jostling for power and influence in the region, according to leading academics from both countries.
Richard Weixing Hu, the University of Macau’s Dean of Faculty of Social Sciences, said that while the stakes are very high for both countries, it is of “vital national interest for China not to let the 'One Country Two Systems' arrangement fail".

William Overholt from Harvard University’s Kennedy School, suggested that while the US policy on Hong Kong, which has included sanctions, is designed to “express disapproval” of the breaches of the city’s Basic Law, it has “no desire to hurt” the people of Hong Kong.

Overholt spent several years working in Hong Kong and was very involved in the island's transition, meeting frequently with China’s top leaders, especially former Chinese premier Zhu Rongji.

Both academics were optimistic on the future of Hong Kong’s economic and financial sectors.

They were speaking at a webinar on “The Future of Hong Kong & Division of China-US lenses” organized on Aug. 5 by Asia News Network, an alliance of 23 national media in 20 Asian countries.

Enze Han from the University of Hong Kong’s Politics and Administration Department said that given the 2019 prodemocracy protests didn’t achieve “anything”, and with the National Security Law in place — leading also to a crackdown on the media — it would be better for Hong Kong to keep a low profile and stay out of the disputes between the two superpowers.

He did, however, suggest that the US could help frustrated Hong Kong youngsters by opening for them the path to immigration. “To be able to migrate abroad will make much clearer sense who they [youngsters] are,” he added.

Hu reiterated that China has a strong economic stake in Hong Kong and to see its successful integration into the Greater Bay Area.

He said the US has commercial interests in Hong Kong and wants to use it as an issue to check on and as a bargaining chip to put pressure on Beijing.

Overholt said there was misconception in the US and western nations, and they were underestimating the public support for the crackdown against the rioters in 2019.

“The majority of Hong Kong supported peaceful protests but the violence by a minority was terrible and there was tremendous anger against violent rioters supporting Hong Kong’s independence and waving the British flag and destroying businesses.”

He was, however, wary of China’s trustworthiness following the crackdown on booksellers, the kidnapping of a businessman (during a holiday in Thailand), termination of the working visa of a Financial Times editor and other actions that “broke all the major promises made to the HK people”.

“All these things have tremendous impacts. The whole western relationship with Hong Kong depends on sensitive information not leaking to the mainland and depends on the functioning of the court system,” Overholt said.

“Also, threatening companies whose employees say something Beijing doesn’t like has a tremendous effect on companies’ decisions on whether to have a major presence in Hong Kong. “Most US companies have already moved to Shanghai and more are going. Actually, they feel safer expressing their opinions in Shanghai than in Hong Kong.”

Overholt noted that Hong Kong remains one of the world’s premier financial centers and is likely to grow even stronger with further opening up of the Chinese financial sector and, ironically, by US pressure on Chinese companies listed in New York.

If China can succeed in breaking up some of Hong Kong’s oligopolies and monopolies, Hong Kong’s economy could become much more competitive than it is today, he said.

To improve for the future, Overholt suggested that China stop overreacting every time people say the wrong thing politically, banning books, punishing a school child for singing a song. “These lead to global publicity, to company HQs asking whether they want to have a big presence in Hong Kong. To maximize Hong Kong’s success is to stop doing these things. They are not necessary for Hong Kong's security, not necessary for China’s security,” said Overholt.

Hu, meanwhile, lamented that US-China relations were likely to worsen before it got better, as each side was driven by domestic political forces. In the US, it is the Congress and interest groups, in China, it is the rise of nationalism.

“Hong Kong is a very hot issue. Washington will continue to use it to demonize China and try to pressure Beijing and showcase the latter’s behavior against the rule-based international order,” said Hu.

He said Beijing has become very defensive and is trying to defend its commitment to the One Country Two Systems arrangement.

With the National Security Law, it is trying to change things on the ground, and calmness has returned to the city.

“But it will take a long time for the return of hearts. Whether young people will choose to identify with China, it will take time,” Hu added.

He warned the US would only hurt itself by increasing sanctions, while any effort to delink Hong Kong from the US or from the HK dollar would also end up hurting the US.
Newsletter

Related Articles

0:00
0:00
Close
Piddington Residents Back Symbolic Independence Vote Over Asylum Accommodation Plan
Reform UK Names Helen Jenner as New Leader in Wales
England Expands Devolution of Transport, Skills and Economic Development Powers
Liberal Democrats Call for Temporary Fuel Duty Cut to Ease Cost-of-Living Pressure
UK Farmers Warn Drought Has Caused Crop Failures and Reduced Harvests
UK Fixed Mortgage Rates Approach 6% as Lenders Raise Borrowing Costs
YouGov Poll Puts Labour at 23% With Conservatives and Reform UK on 21%
Badenoch Presses Burnham to Increase Defence Spending and Cut Welfare Costs
UK Military Figures Warn of Growing Threats to Undersea Infrastructure and National Readiness
BP Moves Ahead With Sale of UK North Sea Oil and Gas Business
UK and ASEAN Endorse New Framework for Trade and Economic Cooperation
UK Consumer Confidence Falls to Three-Year Low as Borrowing Costs and Job Concerns Rise
UK Inflation Rises to 3.1% as Motor Fuel Costs Push Prices Higher
Bank of England Sets Multi-Year Plan to Wind Down Quantitative Easing Holdings
UK Borrowing Rises to £18.3 Billion in August Ahead of October Budget
Michelin Guide Faces Industry Questions Over Restaurant Inspection Coverage
English Woodlands Face Renewed Weather Stress From Dry Conditions and Strong Winds
Research Finds Extensive Alcohol, Gambling and Unhealthy Food Branding During 2026 World Cup
Five Charged After Newborn Baby Dies From Stab Wounds in Sheffield
BT Could Reap £2 Billion From Recycling Copper as Full-Fibre Network Expands
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
Reform UK Names Helen Jenner as New Leader in Wales After Dan Thomas Steps Down
Resolution Foundation Calls for Broad-Based Tax Rises to Fund Higher UK Defence Spending
Ed Davey Calls for Global Treaty to Halt Development of Super-Intelligent AI
Scotland Consults on Legal Price Caps for Essential Foods
NHS Productivity Reforms Could Prevent More Than 20,000 Early Deaths a Year, Report Says
United Kingdom and ASEAN Deepen Trade and Investment Cooperation
United Kingdom Deploys RAF Refuelling Support to Saudi Arabia After Houthi Attacks
UK Fiscal Headroom Shrinks as Higher Borrowing Costs Complicate Autumn Budget
UK Public Borrowing Jumps to £18.3 Billion in August, Raising Pressure Before Budget
Andy Burnham Reaffirms UK Net-Zero Target With £30 Million Community Energy Fund
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
UK Consumer Confidence Falls to Three-Year Low
UK Diesel Prices Approach £2 a Litre as Global Supply Shortages Intensify
Chiltern Railways Returns to Public Ownership as UK Rail Nationalisation Advances
British Museum Faces Questions Over Peter Thiel’s Private Bayeux Tapestry Viewing
Earl Spencer Memoir Excerpts Renew Public Debate Over Diana’s Death
Liberal Democrats Gather in Brighton for Autumn Conference
Mothercare Shares Plunge as Middle East Store Closures Threaten Long-Term Solvency
Kent Police Treat Folkestone Hotel Fire as Suspicious
Caribbean Governments Advance Reparations Campaign Seeking Engagement With Britain
Scottish Labour Leader Backs Rosebank and Jackdaw North Sea Projects
FCA Urges Young Adults to Trace £1.5 Billion in Unclaimed Child Trust Funds
UK Competition Regulator Opens Inquiry Into McCormick-Unilever Foods Deal
Public Inquiry Into Tees, Esk and Wear Valleys Mental Health Failings Set to Begin
Nigel Farage Looks to US Immigration Enforcement Model for UK Border Policy
Chiltern Railways Moves Into Public Ownership
Security Review Raises Concerns Over Sensitive UK Police Data Stored on Microsoft Cloud
Burnham Government Warns of Difficult Autumn Budget as Fiscal Headroom Narrows
Bank of England Holds Rates at 3.75% as Inflation Rises to 3.1%
×