Beijing's approach to Hong Kong shows better than any other aspect of policy how the Chinese leadership has shifted away from economic pragmatism and toward political & ideological control. 1/4

The crisis in HK is entirely a creation of the Xi regime's obsession w control over every aspect of Chinese society. If HK had been left alone, it would be a quiet, prosperous city aiding Chinese development. But Xi couldn't tolerate a HK free of his surveillance state 2/4

So Xi will sacrifice HK as a global financial center & risk international condemnation just to get his hands on the place. So instead of an ally in China's econ progress, Xi will create a HK stripped of talent & foreign finance. Very short-sighted. 3/4

You see this same insistence on control in other parts of Xi's econ policy: the preference of SOEs & state targeting, the dearth of market opening, etc. All will cost China growth. But the gutting of HK is easily the saddest consequence. 4/4