One Country, Two Systems

This week, while Tory party hopefuls all clamour for the chance to sit in the captain’s chair on the Titanic, another democracy is also on the brink of collapse.

Protests in Hong Kong over changes to the Island’s governance structure saw thousands hit the streets, despite a violent clampdown from Chinese authorities. The “one country, two systems” arrangement, that has allowed a form of democracy to exist in Hong Kong since the British handed control back to the Chinese in 1997, looks to have come to an end.

While China has been undermining this system for years, new rules allowing Honkongers to be arrested and extradited by mainland Chinese police has finally killed off its quasi-independence.

Elsewhere markets are on alert after two oil tankers came under attack in the Gulf of Oman. Unconfirmed reports suggest Iran is stepping up its confrontation with the Arab states and is focusing on compromising their oil exporting infrastructure. The cold war between Iran and Saudi Arabia and its allies looks to be heating up with a possible dramatic effect on global oil supplies.