The globalization of the economy has progressed by leaps and bounds in the last 30 years of the 20th century due mainly to two pivotal factors. One is the third techno-industrial revolution, spearheaded by the explosive development of modern information technology and related industries that gave birth to a global market based on the internet. In other words, the earth became one giant market. The other factor is a number of socialist economies, including China, started reforms and opening up to become a part of the global economy after copying the Soviet model for decades with little success.

However, since the United States adjusted its global strategy in 2018 and declared China to be one of its main rivals, a tendency to reverse the globalization of economies has been rising emphatically — especially today, as the COVID-19 pandemic sweeps the world. The unprecedented progress of globalization in the last 30 years of the 20th century is being greatly undone by the US, particularly when the world is plagued by the current pandemic.

In an attempt to take away China’s lead in 5G technology, Washington has gone all out to strangle Huawei - one of the best non-State-owned high-tech companies from China. It has also greatly weakened the techno-industrial foundation of economic globalization. Because the internet is being carved up by the US with such vengeance, the earth as one giant market is also broken. The US government is now blaming China for the COVID-19 outbreak and fanning anti-China sentiment and racial prejudice against ethnic Chinese people everywhere. Meanwhile, populism is gaining more ground in Western countries. It has formed a venomous combination with widespread hatred toward Asians, particularly people of Chinese descent. Amid this dehumanizing backpedaling, the US is showing its desire to “decouple” with China more than ever.

To adjust its mindset and global outlook, Hong Kong has to abandon any inkling of a desire to stay clear of China-US relations. Everyone who wants to reside and work in Hong Kong has to stand on China’s side

If the COVID-19 pandemic causes a global recession and countries around the world choose to focus on their national interests, reverse globalization attempts should be temporary. They will dissipate when the skies clear up and the economy recovers. Unfortunately, the US is hell-bent on undermining the great rejuvenation of the Chinese nation and compromising the techno-industrial foundation and well-being of globalization. This is why the trend of reverse globalization will likely continue over the next five to 10 years or longer. China, therefore, must deal with such adversities as best it can. As a special administrative region of China, Hong Kong must join forces with the mainland more than ever in facing the challenges ahead.

The political ecosystem of Hong Kong is changing drastically. Anti-China and anti-communist political forces have already launched another wave of the “black revolution”. The US government may very well use the “Hong Kong Human Rights and Democracy Act” to impose sanctions against patriotic leading figures from the pro-establishment camp. Faced with mounting pressure from joint interference by the US and UK governments in Hong Kong, members of the pro-establishment camp connected to the two Western powers will have to make a very hard choice. Those who boast having more influence will no doubt affect certain political groups with their choice. The fundamental divide between the two political camps in Hong Kong will be determined by which side they choose to align with.

The status of Hong Kong as an international financial center will undergo considerable adjustment. Hong Kong became an international financial center in the 1970s, thanks mainly to the Western world. That status has grown stronger since the 1980s due mainly to the country’s reform and opening-up drive. As long as the US treats China as a partner instead of a major competitor, Hong Kong as an international financial center will benefit from the motherland’s reforms and opening-up. As the US intensifies its efforts to contain China and even decouple with it, Hong Kong as an inalienable part of China must adjust its market position and approach to its customers.

On the other hand, Hong Kong’s status as an international free port will also alter. Although members of the World Trade Organization failed to reach a consensus in the first round of trade talks on liberalizing multilateral trade (Doha Round), Hong Kong’s status as a free port was not adversely affected before the US launched its latest trade war against China and some other countries, including some of its allies. Today, the trade war has already impacted Hong Kong’s free port status. What is worse is that the US government is poised to use the newly adopted “Hong Kong Human Rights and Democracy Act” to undermine Hong Kong as a free-trade hub. As the global industrial and supply chain scrambles to survive the COVID-19 pandemic however possible, especially in view of the temptation to stop relying on China, Hong Kong not only has to deal with the negative impact of shrinking free trade on its free port status, but also find its position in the global industrial and supply chain significantly changed as a result.

In the face of such a grim challenge, the SAR government and various sectors of society will inevitably have to decide between a reactive or proactive response. Those who care about Hong Kong hope that the choice is a proactive response to any change. To do so, the SAR government must help Hong Kong residents adjust their mindset and outlook appropriately — with a well-rounded plan for future development.

To adjust its mindset and global outlook, Hong Kong has to abandon any inkling of a desire to stay clear of China-US relations. Everyone who wants to reside and work in Hong Kong has to stand on China’s side. It will no doubt be an extremely tough decision for American businesses and citizens based in Hong Kong, but the way China-US relations are changing leaves them no choice, unless they choose to leave the HKSAR for good.

Those who are prepared always have a plan for the changing situation. The SAR government must join forces with the business community and professionals in making plans to maintain the city’s status as an international financial center and free-trade hub, complete with a readjustment of its position in the industrial and supply chain. Otherwise, it will be too late to act when crises occur.

Washington’s campaign to reverse globalization is centered around “alienating China” and maintaining the US hegemony. Hong Kong has no choice but to counteract this by stepping up the integration of its own development into the nation’s overall development strategy, especially deeper involvement in the Guangdong-Hong Kong-Macao Greater Bay Area development.

The author is a senior research fellow of China Everbright Holdings.

The views do not necessarily reflect those of China Daily.