China not only affects politics in Hong Kong but is also strengthening its influence on the business life of this international financial center.

While advocates of economic integration point to the growth-boosting impact of Chinese investment in Hong Kong, critics see this as a negative for Hong Kong’s autonomy.

A protest earlier this month in Hong Kong.

In recent weeks, this concern has been heightened after China announced it was imposing a national security law on Hong Kong, threatening the independence of the judicial system – something that is important for attracting politicians.

`Hong Kong has the potential to develop into an offshore center of China. As an offshore hub, it may have some tax incentives, have its own policies to mobilize capital and attract investment..

Bloomberg takes a simple example of the number of offices of Japanese or American businesses in Hong Kong remaining unchanged over the past five years while that of Chinese companies has skyrocketed.

While Chinese companies are expanding, Western businesses are increasingly concerned about the future of Hong Kong’s special zone.

Chinese businesses also have growing influence in Hong Kong.

According to Bloomberg data, last year, Chinese businesses accounted for 12 of the 20 underwriters of dollar-denominated bonds, compared with just 3 a decade ago. They are responsible for coordinating about 60% of the sources

Chinese banks are also increasingly dominating the foreign loan market with Bank of China – ranking second last year, only behind HSBC Holdings.

A similar picture also appears in the stock market.

Hong Kong’s role as a capital mobilization center for China is being strengthened, but the special zone’s contribution to the Chinese economy has been much reduced.