Analyst David Roche has predicted the crisis in Hong Kong will become a huge issue for China’s economy saying “any intervention [sic] to Hong Kong will be immediately, umbilically, linked to what happens to trade talks and international relations globally.”

Hong Kong is a special administrative region of China, having been granted a high degree of autonomy from Beijing. The recent protests have caused frustration and strain with this unique relationship.

This October 1st marks the 70th anniversary of China’s National Day, a celebration in honor of the founding of the People’s Republic.

As the protests have dragged on, China has moved to regain control. Sending in police to remove protesters from Hong Kong International Airport on Aug 13th, allowing flights to resume. Outside of Hong Kong in the Chinese city of Shenzhen, a build up of Chinese military personnel is clearly visible as Beijing flexes it’s muscle.

AP Photo/Dake Kang)

As we draw closer to October 1st we will follow this story closely to see how China and the world reacts to the continued demands of Hong Kong.

Source: CNBC