After the “Phase 1 Deal” both superpowers have now reached stage 2.0 in the trade war. Hong Kong is the place where a kind of “proxy war” takes place.
With and in the Corona crisis, the conflict between the USA and China, initially started as a trade war, escalates. There are basically two places where a kind of proxy war is taking place between the two superpowers, namely Taiwan and Hong Kong. After the “Phase 1 Deal”, both superpowers have now reached stage 2.0 in the trade war.
The situation in Hong Kong is now particularly urgent. Beijing wants to impose a new “security law” on Hong Kong (to be formally adopted by the Communist Party Congress next week). In effect, Hong Kong is being tightly controlled. And it also means that Beijing can censor and erase all critical contributions in Hong Kong’s social media to China’s leaders, thus overturning the “one country, two systems” principle once negotiated by the British with Beijing. It is therefore clear that demonstrations in Hong Kong are again planned for today. It is possible that scenes will be repeated as they were during the violent clashes a few months ago.
This is also the reason why the Hang Seng stock index in Hong Kong is being sold off heavily. Foreign capital in particular is being withdrawn as a sign of mistrust towards Beijing. The index loses more than -5% and continues to fall post-market on a future basis.
Today a member of the opposition was removed directly from parliament:
The conflict is threatening to escalate simply because, in addition to the Huawei ban, the USA is obviously supporting Taiwan more and more in its quest for independence and is also blaming China for the corona crisis. The pressure on Hong Kong by Beijing, in turn, is a reaction to these actions by the USA, which is suspected of having infiltrated the protesters even then.
See also Markus Koch with a (german) video statement on the intensifying conflict between the USA and China: