Hong Kong's Declining Economic Fortunes

Sixteen years after returning to mainland control, Hong Kong is experiencing an identity crisis. The enclave is anxious over its declining competitive edge and is growing antagonistic toward surging mainland cultural and economic influence into Hong Kong. This in turn is prompting a rising tide of nativism that could make Hong Kong less appealing to outside businesses just as other cities in the region are poised to seize investment opportunities. While Hong Kong's economy is by no means doomed, the special region is again at a critical junction. If it is to keep its competitive edge, it is going to have to abandon the complacency born of its advantaged position and start seeking new opportunities for growth.