China challenged Beijing 's continued administration of Hong Kong when it said that it would repudiate commercial agreements made by the British not first agreed to by Beijing . This was seen as China 's attempt to undermine confidence in Hong Kong 's economy and defeat Governor Patten 's government . In the absence of a British climb down on democracy or defeat of Beijing 's proposals by the local legislature , China 's attacks could undermine business ventures in energy , communications , and trade . British and Chinese businesses in Hong Kong indicated that Beijing 's threat would not impact investment decisions . Share prices fell in response to the Chinese warning .
China challenged Britain's continued administration of Hong Kong when it said that it would repudiate commercial agreements made by the Colony not first agreed to by Beijing. This was seen as China's attempt to undermine confidence in Hong Kong's economy and defeat Governor Patten's proposals. In the absence of a British climb down on democracy or defeat of Patten's proposals by the local legislature, China's attacks could undermine business ventures in energy, communications, and trade. British and US businesses in Hong Kong indicated that Beijing's threat would not impact investment decisions. Share prices fell in response to the Chinese warning.