San Francisco Chronicle

Yellow or blue? It’s key in Hong Kong

Many business choose sides in bitter divide

- By Hannah Beech

HONG KONG — The tapioca pearls at Fred Liu’s bubble tea house are springy and fresh, just like the fish balls at Elaine Lau’s noodle shop. But that is not the only reason customers flock to these eateries in Hong Kong’s bustling Causeway Bay shopping district.

Both are members of the socalled yellow economy, shops that openly support the democracy movement remaking Hong Kong as it strives to protect the freedoms differenti­ating the territory from the rest of China.

After seven months of street protests against Beijing’s assault on these liberties, Hong Kong is colorcoded — and bitterly divided. The yellow economy refers to the hue of umbrellas once used to defend demonstrat­ors against pepper spray and streams of tear gas. That is in contrast to blue businesses, which support the police.

Families and businesses have cleaved, sometimes forcefully, between those who believe Beijing must be compelled to carry out promised reforms and those who worry that the democracy crusade is destroying Hong Kong’s reputation as a stable financial capital.

A middle ground between the blue and yellow factions barely exists.

“I’m yellow, but my parents are blue,” said Lau, the fish ball noodle seller. “A lot of families are like that.”

“Luckily, I control 90% of the restaurant,” she added, as diners slurped down bowls of soup. “So I can do what I want here.”

Both Lau’s noodle shop and Liu’s teahouse are plastered with Postit notes of encouragem­ent for prodemocra­cy forces, mimicking the Lennon Wall in Prague where messages of dissent proliferat­ed under Soviet domination. Maps and apps showing businesses’ perceived leanings help guide customers their way.

“We want to show the Chinese Communist Party that Hong Kong people can be economical­ly selfsuffic­ient through the yellow economic circle,” Liu said. “We want to put pressure on blue shops to close.”

Devoid of natural resources and crowded onto limited land, Hong Kong has flourished because of its people, mostly entreprene­urial immigrants who left China for better prospects in the former British colony.

Hong Kong residents advanced up the economic ladder, as sweatshop laborers rose to become bosses with factories on the mainland and even real estate or shipping tycoons. Today, the territory, which was returned to Chinese rule in 1997, ranks behind only New York and London as a nexus of global finance.

Yet months of unrest, along with the trade war between the U.S. and China, have battered Hong Kong’s economy, which went into a recession last year. In the central business district, police officers fired live bullets and arrested unarmed schoolgirl­s. On university campuses, students lobbed firebombs with homemade catapults. Tear gas has been unleashed in all but two of Hong Kong’s 18 districts.

The violence flared again recently as two police officers were beaten when officials tried to halt a prodemocra­cy rally in the central district.

Tourists from mainland China, a vital source of income for Hong Kong businesses, have stayed away because of the turmoil. Retail sales have plummeted.

Smallbusin­ess owners, whose operations make up the bulk of Hong Kong’s enterprise­s, are bearing the brunt of the downturn, even as they contend with some of the highest rents in the world. Economic analysts fear for the city’s future.

“A deteriorat­ion of the sociopolit­ical situation and delays in addressing structural challenges of insufficie­nt housing supply and high income inequality could further weaken economic activity and negatively affect the city’s competitiv­eness in the long term,” the Internatio­nal Monetary Fund warned last month.

Amanda Leung’s family has sold dried seafood for three generation­s. In recent years, mainland visitors concerned about the safety of the domestic food supply have been some of her biggest customers, she said. They bought fish maw and mollusks, abalone and sea cucumber.

“They have stopped coming,” she said.

Leung said she understand­s the frustratio­ns that have kept the protest movement going, from peaceful marches of more than a million people demonstrat­ing against a nowwithdra­wn extraditio­n bill to the passions of a hard core of brickthrow­ing youth.

“China should leave Hong Kong alone,” she said. “We can do business our own way.”

As tempers have flared, businesses on both sides of the color divide have been attacked. Down the street from Liu’s tea shop, vandals lobbed red paint at a food stall known as a yellow establishm­ent, while a nearby snack food store considered to be proBeijing was damaged.

The battle has gone online, too. Ken Leung helped create WhatsGap, a popular app in Hong Kong that maps businesses that are considered yellow, helping them draw customers.

This month Google removed the app from its online store, saying it violated its policies related to sensitive events, but critics said the company might have been acting to placate China. Apple pulled a similar service from its app offerings last year.

“The divide in Hong Kong society has only increased, not lessened,” Ken Leung said.

But in November, prodemocra­cy candidates won a landslide victory in district council elections, the first time that Hong Kong voters had a chance to express their positions on the protests since this movement began.

The yellow economy was backed up by the ballot box.

“There’s a perception that Hong Kong businesspe­ople are not sympatheti­c to the protests, but look at the silent majority that spoke in large peaceful marches or in the district council elections,” said Todd Darling, an American restaurate­ur who has lived in Hong Kong for 16 years.

As the protests gathered force last year, Rocky Siu watched as an orderly column of demonstrat­ors, miles long, marched past one of his ramen restaurant­s. When the police cracked down, he opened his doors, offering halfprice bowls of noodles and free saline solution to wash the tear gas from protesters’ eyes.

“I’m losing money, but that’s not the point,” he said. “We have to support our young people.”

Siu’s father was born in China and came to Hong Kong to seek a better life. But he owns a jewelry factory on the mainland and is, as Siu puts it, “deep blue.”

“I tell him I don’t understand. You escaped China but now you’re supporting them,” Siu said. “To me, it’s not yellow or blue. It’s black and white, right and wrong.”

 ?? Photos by Lam Yik Fei / New York Times ?? Elaine Lau prepares an order at her noodle shop, a socalled yellow economy business, in Hong Kong. Below: Expression­s of prodemocra­cy support on a wall at Fred Liu’s bubble teahouse.
Photos by Lam Yik Fei / New York Times Elaine Lau prepares an order at her noodle shop, a socalled yellow economy business, in Hong Kong. Below: Expression­s of prodemocra­cy support on a wall at Fred Liu’s bubble teahouse.
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 ?? Photos by Lam Yik Fei / New York Times ?? An arm is painted with Pepe the Frog, a caricature used by the prodemocra­cy movement.
Photos by Lam Yik Fei / New York Times An arm is painted with Pepe the Frog, a caricature used by the prodemocra­cy movement.
 ??  ?? A location of Genki Sushi, whose franchisee is considered proBeijing, was attacked by prodemocra­cy protesters.
A location of Genki Sushi, whose franchisee is considered proBeijing, was attacked by prodemocra­cy protesters.

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