The PRC finds itself in two-front “war”, each of increasingly intensity, with all sides digging deeper without any clear resolution in sight. The first is economic - the trade war with the US. The second is primarily political (with economic consequences) as Hong Kong residents demand that the PRC cease encroaching upon the 1997 agreed-upon autonomous rights. From the perspective of the PRC, the Hong Kong demonstrations are no longer an annoying distraction, but rather, a separatist insurrection against the PRC’s sovereignty.
From an economic perspective, the Hong Kong economy will suffer long-term massive convulsions