Economic instruments of political control: Hong Kong businesses under China’s comprehensive jurisdiction

Abstract Political control is pervasive in authoritarian contexts; however, the use of economic instruments as a means of political repression has been underexplored. Embedded in Hong Kong’s political upheavals triggered by the 2019 extradition bill, this paper underpins the erosion of Hong Kong’s political environment by analysing economic pressure exerted on businesses, or ‘economic repression’, to eliminate, convert, and/or silence their dissenting behaviour. Drawing on Earl’s repression typology, it distinguishes between two forms of repression: economic channelling and economic duress. The former involves covert actions that increase the operational costs of targeted businesses, including administrative inspections and the severance of economic ties, while the latter embodies overt actions that disrupt their operations, such as asset freezes and vandalism of shop premises. Although both businesses and individuals may be subject to economic repression, this paper pays special attention to businesses, as their responses have far-reaching implications for the political and economic landscape. Employing the cases of Cathay Pacific, Taipan Bakery, Apple Daily , and Chickeeduck, which were well-known players in their respective industries in 2019–2021, it is observed that economic channelling was usually deployed at a defiant company first, followed by economic duress if the target did not conform to the new political norms. Economic repression not only stifles political resistance in the marketplace but also hampers the competitiveness of the international financial city.