In an interesting test of how much has changed in the last five years, Hong Kong and Mainland authorities are permitting unlimited cross-border visits by Shenzhen residents. Last time this happened, Sheung Shui and other New Territories towns were flooded with smugglers pushing carts laden with Yakult (a yogurt drink that supposedly makes ladies’ boobs bigger) and squatting on the sidewalk to consolidate packs of fresh meat, much to the delight of thousands of flies…
The resumption of multiple-entry Hong Kong visas … is unlikely to give rise to the smuggling practices that once brought overcrowding to northern districts, leader John Lee has said as he cited changes in consumer habits.
…Lee said on Tuesday that the revived scheme would cover a broader swathe of Shenzhen residents compared to before 2015. Non-permanent residents of Shenzhen holding residence permits, such as those who come from rural areas and work in Shenzhen, would also qualify.
If anyone would want to get into cross-border smuggling, it would be migrant workers with no Shenzhen hukou. But in theory the weakening of China’s currency might make smuggling less attractive.
Pros and cons from the authorities’ point of view… An influx of Mainland visitors might push up shop rents, which would please the Boom Days Re-enactment fans among the bureaucracy. On the other hand, it risks provoking resentment and renewed localist sentiment among the Hong Kong population, after all that hard work to nurture national pride. But if you get sufficient numbers of them coming in, no-one can see or hear the local people anyway.
The SCMP’s former editor pens an op-ed that is, by the paper’s standards these days, rather edgy…
On November 19, two major events unfolded simultaneously in Hong Kong which highlighted the paradox of this once-great but now-confused city as it tries to navigate between socialism and capitalism in an era of great uncertainty.
He then compares the gathering of international financiers and Mainland officials and the HK47 sentencing, which grabbed all the attention, adding.
It remains unclear whether the timing of these two major events was coincidental or deliberate. However, subsequent international media reports have shown that the convictions dominated the headlines, not only eclipsing the forum but also making some of the international financiers attending uncomfortable….
…Hong Kong officials and elites have failed in their efforts to counter [negative conceptions] about the city. In fact, some have inadvertently contributed to the perception that Hong Kong is fast becoming “one country, one system” as they are eager to adopt mainland-style language and tone in their public statements, as well as adopting some mainland-style bureaucratic practices….
At which point paywall-avoidance measures are exhausted, but the subhead gives a clue: ‘Efforts to reassure residents, investors and observers have been sidetracked by a lack of clearer parameters on what Hong Kong can or can’t do in the new environment’.
His reference to Hong Kong being caught between ‘between socialism and capitalism’ is perhaps coy. By ‘socialism’, he means China’s communist system and its absolute need for control; by ‘capitalism’, he means the liberalism and pluralism that allow a free society and enable an international financial hub to thrive.
Oh, the parallel traders will return. It’s not like consumer goods on the mainland have suddenly become trustworthy.
See: Macau, where the administration makes sure obvious parallel trading can’t be seen on main roads. But you don’t have to look far; several side-streets just a short walk from the main border crossing are filled with shops – more like mini-warehouses, stacked with cartons – catering exclusively to the trade.
It won’t be long before HK’s quality and safety standards match those of the glorious motherland (for eaxmple, the new lower standards for drug approvals), and there won’t be a need for this trade any more.
Hemlock, you mention that shop rents might increase. I really don’t think this is an issue that bothers any landlord. My reason for saying so is that I once found myself talking to a gathering of bar owners and restaurant owners in central, some of whom had lost their business because landlords wouldn’t reduce the rent during covid. It was explained to me that landlords don’t worry about rents during time of hardship because the value of their property makes up for it, even if it goes empty. I don’t know if this is true or if it was just their way of explaining the loss of the bar and restaurant owners own business during frustration negotiations. I also don’t know if Hong Kong is unique in this way. Do businesses in other international cities largely rent their premises or buy them to own?
Question is will the popo come down viciously on and with equal zeal, the smugglers/traders operating openly and defiantly, the way they did to kids and regular citizens during the “ma fans”??
On the bright side the influx will provide opportunities for the many “Top Talent” imports who have resorted to becoming insurance agents in order to have proof of employment to secure the extension of their visas.
just as water is wet, parallel trading shall be conducted when possible and lucrative