"Hong Kong was reincorporated in the People’s Republic in 1997 when the British ceded their colony to Beijing. The immediate effect was a restriction on liberties on the island. But the Chinese regime needed to reassure global entrepreneurs of its commitment to some degree of social freedom, and a political witch-hunt in Hong Kong would have damaged this objective. Expatriate Chinese colonies in North America and Europe also required reassurance since they acted as important intermediaries for China’s entry into the world economy. Ties of commerce between the People’s Republic and the USA were strengthened and the global markets teemed with Chinese exports. Chinese rulers huffed and puffed about desiring to reincorporate Taiwan but military action was avoided. Trade was preferred to conquest."