CNBC - Aug 17, 2020 -
Yen Nee Lee -
China may never “reunify” with Taiwan now that the central government in Beijing has tightened its control over Hong Kong, one strategist said on Monday.
“In a sense, the big price that China’s paying for Hong Kong is actually Taiwan,” David Roche, president and global strategist at consultancy Independent Strategy, told CNBC’s “Squawk Box Asia.”
China claims Taiwan as part of its territory and sees the democratic self-ruled island as a runaway province.
The Chinese Communist Party has never governed the island, but has sought to push Taiwan to accept Beijing’s rule under a “one country, two systems” framework.
Hong Kong is a former British colony now governed by China under a “one country, two systems” principle, which grants the Chinese territory a largely separate economic and legal system, and allows those living there limited election rights.
Large-scale pro-democracy protests — which sometimes turned violent — engulfed Hong Kong for much of last year. That partly led China to implement a national security law in Hong Kong, which raised concerns among the city’s opposition politicians and activists
World leaders such as the U.K.’s Foreign Secretary Dominic Raab, and U.S. Secretary Mike Pompeo have also spoken out against the law.
Roche said those developments in Hong Kong could push Taiwan further away from China.
“What has happened in Hong Kong has lost Taiwan for China forever,” he said.