China will wait the Hong Kong situation out. From Simon Black at sovereignman.com:
Sun Tzu, the legendary Chinese general of the 6th century BC Zhou Dynasty, famously wrote in the Art of War:
“When you engage in actual fighting, if victory is long in coming, then men’s weapons will grow dull and their ardor will be damped. If you lay siege to a town, you will exhaust your strength.”
Modern day governments understand this principle very well. And that’s lesson #1 I want to discuss today.
If you’ve turned on a television, seen a newspaper, or casually browsed the Internet today, you probably saw some startling news about more protests erupting in Hong Kong.
I told you about this earlier in the week when I was on the ground there– over a million people took to the streets to demonstrate against a Draconian new law that the Hong Kong government is proposing which aims to make it easier to extradite political dissidents to mainland China.
People in Hong Kong are militant about their freedom, and they’re refusing to bend the knee over this proposed law.
Yet the government is still pressing ahead despite overwhelming opposition. So much for representative democracy.
Other governments around the world have spoken out about it, including even the United States, which issued a statement expressing “grave concern” about the law.