The protracted US – China trade war and the ongoing protests in Hong Kong are starting to impact the leadership in Beijing while they continue to focus on the slowing economy in China. As Beijing celebrates 70 years of Communist Party rule, there is an uneasy feeling that is growing before the October 1 holiday. Several regions in China from manufacturing hub of Dongguan, and Shenzhen – the home of Huawei and the Nanning area just near the border with Hong Kong, are being impacted by US tariffs and demonstrations, respectively. President Xi Jinping, the self-appointed leader of the nation of 1.3 billion (he and Party officials made Xi president for life), is now dealing with a list of issues that have him focused on both President Trump and of course the domestic leadership who are somewhat uneasy about the growing fear of the Hong Kong protests spreading.
There is growing concern about the possibility of the Communists, who took power in 1949 when they dismantled a government that allowed too much foreign interference, now looking at the current government and breaking down their power. The people, the masses in China are not happy with food inflation and other changes in society but they seem reluctant, especially given the heightened fears tied to Hong Kong, to openly comment about the government. Emergency rationing has been employed in some areas of the country, in Nanning for example, price controls have been implemented in the local food market starting in September. And with the recent swine flu outbreak, pork, the food of choice on dinner tables around China has seen an increase in prices of 50 percent since August.
It is not surprising that the Chinese leadership in Beijing has been very careful to isolate the protests in Hong Kong and of course prevent then from overflowing into the mainland – Hong Kong is naturally isolated but it is now segregated from the rest of China. So it is clear that Mr Xi and the CCP have their work cut out for them in the coming weeks and months.