Hong Kong Media: "China Seems to Have Lost Trust in Hong Kong Business Community and Certain Pro-Government Figures"

[Asia Economy Reporter Lim Chun-han] Hong Kong media reported on the 7th that the Chinese government has lost trust in Hong Kong's business community and certain pro-government figures, and that this situation will be reflected in the recent Hong Kong electoral system reform.

The media cited a business figure belonging to the Hong Kong Chief Executive Election Committee, stating, "With this electoral reform, Hong Kong's business community and some pro-government figures may become politically useless." It added, "A key pro-government figure within the Election Committee also said that the Chinese government intends to evenly distribute the votes, which have been concentrated in the business sector, across various fields."

The Hong Kong Chief Executive is elected indirectly by the Election Committee. Currently, the Election Committee consists of 300 members from the industrial and commercial (工商) and financial (金融) sectors, 300 from the professional (專業) sector, 300 from the labor (勞工), social service, and religious sectors, and 300 from the political sector including Legislative Council members, totaling 1,200 members across four sectors. According to Hong Kong media, the Chinese government is pushing to expand the Election Committee to 1,500 members across five sectors. Additionally, it is reported that the 117 seats held by district councilors, currently controlled by the pro-democracy camp, will be eliminated, and about 400 seats, including 300 newly added ones, will be filled by pro-China forces.

The media stated that business magnates in the Election Committee have played the so-called "kingmaker" role. In particular, during the 2017 Chief Executive election, the pro-democracy camp allied with the business community to support former Financial Secretary John Tsang, which reportedly upset the Chinese government. Although Carrie Lam (林鄭月娥) was eventually elected in that election, the "rebellious votes" backed by the business community were significant. As a result, the Chinese government initiated the Hong Kong electoral reform to preemptively eliminate even small disturbances to prevent such incidents from happening again.

Earlier, the South China Morning Post (SCMP) also reported that the Chinese government wants to revise the 300 seats in the Hong Kong Chief Executive Election Committee where the business community exerts influence. It is considering reducing the influence of business magnates within the Election Committee, centered around the four major real estate families who dominate Hong Kong's property market.

SCMP stated that after the 2019 anti-government protests in Hong Kong, the Chinese government began to doubt the capabilities of the three pillars of Hong Kong's ruling class: the executive branch, the business community, and pro-government organizations. Former Hong Kong Secretary for Transport and Housing Anthony Cheung said, "The political crisis in Hong Kong in 2019 was, from China's perspective, tantamount to a rebellion against the central government," and added, "The Chinese government began to question not only the capabilities but also the loyalty of the three sectors of Hong Kong's ruling class."

SCMP reported that during the first two months of the 2019 anti-extradition bill protests, the business community remained silent, and only after the police began crackdowns in August did some start to criticize the violence and chaos. Subsequently, Chinese media pointed to the skyrocketing property prices in Hong Kong as a core factor of the protests and attacked Hong Kong's real estate tycoons. Former Secretary Cheung noted that in recent years, there has been a change in the relationship between the Chinese government and Hong Kong business magnates, saying, "The Chinese government must have realized the need to reform Hong Kong's ruling class." The Chinese government had long believed that entrepreneurs stood on their side in maintaining Hong Kong's social stability and prosperity, but this perception changed after the anti-government protests.

SCMP, citing Chinese government sources, also reported that the Chinese government is concerned that the younger successors of Hong Kong's business community no longer share the patriotism that their predecessors had toward China.