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China is always tried to tighten its grip, but in a slower pace. For the extradition law they are proposing, it is not a standard move but very controversial among Hong Kong and even internationally. The main reason for China to do that is because China don't have enough dollar reserve.

In trade war between China and US, many food production in China relied on foreign trade. Increasing tax would cause China losing their reserve in higher rate. It is not just about Huawei, but many industry losing jobs, not enough food production for the people. The same or similar may apply to US but the difference is that China is authoritarian. If an authoritarian cannot maintain its economic growth, the government would be collapsed by revolution or a coup. They could even potentially start a war for cover up their fault by blaming foreign countries. For US, it's just a matter of losing an election.

Now what is the solution? There are still many reserve in Hong Kong. Let's start a extradition law in Hong Kong to China to take back some of the dollar from "outlawed" Hong Kong merchant. For the sake of China, Hong Kong could be a pawn for sacrifice.