Beijing walks a thin line as Hong Kong erupts at the worst possible time

This week’s violent protests in Hong Kong against a controversial extradition bill couldn’t come at a worse time for China’s stability-obsessed Communist Party and its leader, President Xi Jinping.

Facing a weakening economy, and with trade tensions with the United States at an all-time high, experts say Xi is under pressure to deliver on the enormous power he’s amassed since coming to power in late 2012.

Tens of thousands of mostly young protestors took to the streets again on Wednesday, temporarily shutting down Hong Kong’s Legislative Council and surrounding streets, and forcing a delay in the proposed reading of the bill.

At least 81 people were injured throughout the day, as an estimated 5,000 riot police fired rubber bullets and tear gas at protesters.

Experts say Beijing doesn’t want to be seen to back down on the extradition law but can’t afford to inflame matters with a serious crackdown. The dilemma has left the normally blunt Xi administration with a narrow line to walk to avoid escalating the Hong Kong crisis.

The Chinese government response Wednesday was defiant in both state media and official government statements.

“It is lawlessness that will hurt Hong Kong, not the proposed amendments to its fugitive law,” an editorial in the state-run China Daily said.

But Willy Lam, an adjunct professor at the Chinese University of Hong Kong and a longtime analyst of Chinese politics, said the extradition crisis has no clear or easy solution for Beijing.

“A ferocious confrontation is shaping up between the will of the Hong Kong people and the Xi Jinping administration, (which is) determined to be the arbiter of things in Hong Kong,” he said.

A riot policeman sprays pepper spray at a man as they disperse a crowd during a demonstration against "parallel traders" who buy goods in Hong Kong to resell in mainland China on Sunday, January 5.

Pro-democracy supporters hold placards as they take part in a New Year's Day rally on Wednesday, January 1 in Hong Kong.

Pro-democracy supporters wave flags during a countdown party in Tsim Sha Tsui district on New Year's Eve.

Police arrive to conduct a clearance operation in the Kowloon district of Hong Kong on December 31.

Protesters take photos of a 'Free HK' light display at a gathering in the Central district of Hong Kong on December 30.

A man is detained by riot police during a demonstration in a shopping mall at Sheung Shui district on December 28.

A protester reacts after police fire tear gas to disperse bystanders in the Jordan district of Hong Kong, early on December 25.

People celebrating the holidays react to tear gas as police confront protesters on Christmas Eve.

Protesters march in Hong Kong.

Protesters stage a rally outside the US Consulate in Hong Kong on Sunday, December 1. Hundreds gathered Sunday afternoon outside the US Consulate for another pro-US rally to show support for President Trump after he signed the Hong Kong Human Rights and Democracy Act into law.

People take part in a march from Tsim Sha Tsui to Hung Hom in Hong Kong on December 1.

Pro-democracy candidate Jimmy Sham, right, celebrates with a supporter after winning his election in the Sha Tin district, early November 25. "Today's result represents (my constituency's) support to protesters. The government should immediately establish the Five Demands and respond to the public's voices," Sham posted on Facebook, referencing a long-standing protest slogan.

Pro-democracy candidate James Yu hugs his girlfriend after winning his seat in district council elections, early November 25.

People line up to vote outside of a polling place in Hong Kong, November 24. More than 2.9 million people turned out to vote in Sunday's elections, which have been framed as a de facto referendum on the almost six months of ongoing protests.

Hong Kong Chief Executive Carrie Lam casts her ballot for the district council elections at a polling place, November 24. In a statement Monday, Lam said her government "respects the election results."

A group of protesters leave the Hong Kong Polytechnic University holding hands before surrendering to police in the Hung Hom district on November 22.

Protesters use clothes and helmets to form "SOS" at Hong Kong Polytechnic University on November 21.

Protesters raise their hands to represent the five demands of pro-democracy demonstrators during a rally in support of the Hong Kong Human Rights and Democracy Act in the U.S., at the IFC Mall in Hong Kong, on November 21.

Tables and chairs piled up to create a barrier are left behind by protesters who barricaded themselves inside the Hong Kong Polytechnic University.

A Fire Services Department rescue diver prepares to enter the sewage system on November 20 to search for protesters who escaped from the Hong Kong Polytechnic University.

Police detain a group of people after they tried to flee the Hong Kong Polytechnic University campus on November 19. Last week, thousands of student protesters streamed into the university and occupied the campus as the city's violent political unrest reached fever pitch.

A protester uses a flashlight while crawling through a sewer tunnel to see how wide it is as he and others try to find an escape route from the Hong Kong Polytechnic University on November 19.

A protester walks through a gymnasium at Hong Kong Polytechnic University on November 19.

Protesters react as police fire tear gas in the Kowloon area of Hong Kong, Monday, November 18.

Firefighters put out a burning car set on fire by protesters near Hong Kong Polytechnic University in the Tsim Sha Tsui district on November 18.

Police in riot gear move through a cloud of smoke as they detain a protester at the Hong Kong Polytechnic University in Hong Kong on November 18. Police have attempted to clear the university, which has been occupied by protesters for days as a strategic protest base.

Police fire tear gas as protesters attempt to leave Hong Kong Polytechnic University via a bridge on November 18.

A member of the police clashes with a protester at the Hong Kong Poytechnic University on November 18.

Protesters use a rope to lower themselves from a pedestrian bridge to waiting motorbikes to escape from police at Hong Kong Polytechnic University on November 18.

A protester throws an umbrella onto a fire at the barricaded main entrance of Hong Kong Polytechnic University on November 18.

An anti-government protester is detained at Hong Kong Polytechnic University on November 18.

An anti-government protester is showered down by volunteer medical workers after he was soaked by a police water cannons firing pepper spray-infused water at Hong Kong Polytechnic University on November 18.

Riot police fire tear gas and rubber bullets as protesters attempt to leave Hong Kong Poytechnic University on November 18.

A protester prepares to shoot an arrow during a confrontation with police.

Police use a water cannon outside the Hong Kong Polytechnic University.

A protester throws a Molotov cocktail at police on November 17.

Protesters use a catapult to fire bricks at the police from inside the Hong Kong Polytechnic University on November 17.

A woman tries to hold back riot police from approaching the Hong Kong University in Hong Kong on Saturday.

Protesters train to throw Molotov cocktails into a swimming pool on the campus of the Hong Kong Polytechnic University on November 14.

Protesters walk past barricades of bricks on a road near the Hong Kong Polytechnic University on November 14.

Demonstrators gather during a lunchtime protest in the financial district of Hong Kong on November 14.

A protester releases a flaming arrow to light a barricade at The Chinese University of Hong Kong (CUHK), Wednesday, November 13.

A Molotov cocktail, a gas mask and a yellow construction helmet are placed upon a bust of late hotel tycoon Hui Yeung Shing at the campus of The Chinese University of Hong Kong on November 13.

A fire is seen at a Mass Transit Railway (MTR) station during a demonstration at The Chinese University of Hong Kong on November 13.

Students attempt to clear tear gas canisters fired by riot police onto a sports track during a confrontation at the Chinese University in Hong Kong on Tuesday, November 12.

A man is detained during a protest at the Chinese University of Hong Kong on November 12.

Students block an escalator with chairs in an attempt to hamper police at the University of Hong Kong on November 12.

A protester is detained in the Central District of Hong Kong on November 11.

People react after tear gas was fired by police during a protest in Hong Kong's Central District on November 11.

Riot police face off with protesters at an entrance of a shopping mall during a demonstration on November 10.

A man is helped by a volunteer medic after police used pepper spray during a demonstration on November 10.

Students of the Hong Kong University of Science and Technology (HKUST) participate in a march on November 8, after hospital officials confirmed the death of student Chow Tsz-lok, 22. Police say Chow, a computer sciences student at HKUST, fell from the third floor to the second floor of a parking garage in the residential area of Tseung Kwan O in the early hours of November 4.

A person places a flower at a memorial for 22-year-old Hong Kong university student Chow Tsz-lok on November 8.

Students in gas masks are seen during a graduation ceremony at the Chinese University of Hong Kong on Thursday, November 7 in Hong Kong.

Firefighters stand outside the offices of China's Xinhua News Agency after its windows were damaged by protesters in Hong Kong on Saturday, November 2. Hong Kong riot police fired multiple rounds of tear gas and used a water cannon Saturday to break up a rally by thousands of masked protesters demanding autonomy after Beijing indicated it could tighten its grip on the Chinese territory.

Richard Chan, a candidate for the district council elections, reacts after being pepper-sprayed by police in Hong Kong on November 2.

Thousands of black-clad masked protesters streamed into Hong Kong's central shopping district for another rally on November 2.

A person dressed as President Donald Trump waves an American flag on a street in Hong Kong on Thursday, October 31, 2019. Hong Kong authorities braced as pro-democracy protesters urged people on Thursday to celebrate Halloween by wearing masks on a march in defiance of a government ban on face coverings.

A man dressed as the Joker for Halloween walks past police officers on October 31.

Pro-democracy activist Joshua Wong (second from left) and Kelvin Lam (second from right) shout slogans as they meet the media outside the Legislative Council (LegCo) in Hong Kong on October 29, 2019, after Wong was barred from standing in an upcoming local election.

A protester throws a tear gas canister on October 27 in Hong Kong.

A couple wearing Guy Fawkes masks watch a rally at Chater Garden in Hong Kong on October 26.

Protesters start a fire in front of the MTR station during demonstration on October 27.

Tear gas smoke is seen exploding over reporters during an anti-government protest in Mong Kok district in Hong Kong on October 27.

High school students take part in a human chain rally outside Kowloon park in Hong Kong on October 25.

Police fire blue dye toward protesters in Hong Kong on Sunday, October 20. Blue dye can be used to stain and identify masked protesters.

A pro-democracy protester is arrested by police on October 20.

Pro-democracy lawmakers protest as Hong Kong Chief Executive Carrie Lam delivers a speech at the Legislative Council on Wednesday, October 16. Lam's annual policy address ended in chaos as pro-democracy lawmakers repeatedly disrupted her speech and heckled her with calls to honor the demands of anti-government protesters.

A protester shoots a basketball at a poster of Lam during a rally on Tuesday, October 15.

Protesters set fire to a Bank of China branch on Sunday, October 13. It was the 19th consecutive weekend of anti-government protests in Hong Kong.

Protesters use the lights on their phones during a rally in central Hong Kong's business district.

A protester attempts to break a tourist bus window on October 13.

Protesters wearing masks in defiance of a recently imposed ban gather at a shopping mall on October 13.

Supporters surround a police bus carrying political activist Edward Leung as it leaves the High Court in Hong Kong on Wednesday, October 9. Several hundred masked protesters gathered at Hong Kong's High Court for the appeal hearing of Leung, who was sentenced to six years in prison for his part in a violent clash with police.

A woman is treated after police fired tear gas to disperse protesters in the Mong Kok district of Hong Kong on October 7.

Pro-democracy protesters gather in a shopping mall on October 7.

Rescue personnel check the bottom of a taxi after the driver allegedly drove onto the pavement, hitting protesters in Hong Kong on October 6.

A China Construction Bank is seen vandalized in the Causeway Bay area of Hong Kong on October 6.

Pro-democracy protesters set fires in the street in the Causeway Bay area.

People protest the ban against masks on Saturday, October 5.

An anti-government protester stands near a fire on Friday, October 4.

Protesters move a statue depicting a protester armed with gas mask, helmet and umbrella on the streets of Hong Kong on October 4.

Protesters set a fire at a China Construction Bank.

Protesters spray paint slogans at the entrance to a tunnel on October 4.

A store is in shambles after being vandalized by protesters.

Pro-democracy demonstrators hold up their hands to symbolize their five demands during a rally on October 4.

Protesters throw petrol bombs at the gate to the Tsuen Wan police station on Wednesday, October 2.

Schoolmates of a student who was shot in the chest by police place their hands on their chests during a protest on October 2.

A young protester was shot?Tuesday, October 1, as violent protests erupted across Hong Kong on the 70th anniversary of the People's Republic of China. The incident marked a major escalation in violence that could galvanize?the protest movement in Hong Kong.

Police detain an anti-government protester on October 1. Thousands of black-clad protesters marched in central Hong Kong as part of multiple pro-democracy rallies.

Police tackle and arrest pro-democracy protesters during clashes on October 1.

A protester is seen carrying rocks on a street on October 1. While events in Beijing were being held to mark the 70th anniversary of the founding of the People's Republic of China, demonstrators rallied throughout Hong Kong.

Protesters react after police fired tear gas near the central government offices in Hong Kong's Admiralty area on October 1.

Pro-democracy protesters form a "Pepe the Frog" themed human chain on Monday, September 30.

A man is detained by Hong Kong police during a protest in the Causeway Bay shopping district on Sunday, September 29.

Bus passengers look at a burning barricade lit by pro-democracy protesters in front of the Mong Kok police station on Sunday, September 22.

Pro-democracy protesters sing songs and chant slogans during a rally inside a shopping mall on September 22.

A pro-China supporter, center, is escorted by police after confronting journalists in Hong Kong on September 15.

Pro-government and anti-government supporters chant against one another at a shopping mall in Hong Kong on Friday, September 13. The sign translates to "Stop violence and curb chaos; safeguard Hong Kong."

Demonstrators hold up their cell phone lights as they form a human chain at the Peak, a tourist spot in Hong Kong, on September 13.

Police escort an injured man after he attacked protesters outside Prince Edward station in Hong Kong on Friday, September 6.

Protesters burn paper money to pay their respects to injured protesters.

Protesters prepare to clash with police outside the Mong Kok police station on September 6.

A protester is detained by police at the Po Lam Mass Transit Railway station on Thursday, September 5.

A man watches televisions at a store in Hong Kong as Chief Executive Carrie Lam announces the withdrawal of the extradition bill on Wednesday, September 4.

A woman gets emotional on September 4 while paying her respects to protesters who were injured a few days earlier.

Demonstrators travel through a railway station during a rally on Tuesday, September 3.

Students wearing gas masks and helmets hold a banner that reads "five major demands are indispensable" at St. Francis' Canossian College in Hong Kong.

Protesters gather in the bus terminal at Hong Kong International Airport on Sunday, September 1. Hundreds of pro-democracy activists attempted to block transport routes to the city's airport.

A passenger walks to the airport on September 1 as pro-democracy protesters blocked a road outside the airport.

A protester uses a slingshot outside the Central Government Complex during clashes with police on Saturday, August 31. Thousands of pro-democracy protesters held an anti-government rally one day after several leading activists and lawmakers were arrested in a sweeping crackdown.

Protesters light a Molotov cocktail on August 31.

Protesters take cover as policemen fire blue-colored water on them. Blue dye can be used to stain and identify masked protesters.

A surveillance camera is covered with white paint during protests.

An overhead view shows protesters reacting after police fired tear gas on August 31.

Pro-democracy activists Agnes Chow and Joshua Wong speak to the media after they were released on bail at the Eastern Magistrates Courts on Friday, August 30. They were arrested earlier the same day in a dragnet across Hong Kong.

Protesters clash with police after a rally in Hong Kong's Tsuen Wan district on Sunday, August 25. It was one of the most violent nights seen in Hong Kong since mass protests began in June.

A police officer aims a gun in front of a protester on August 25.

Some protesters shine laser pointers at police lines on August 25.

Protesters pick up bricks to be used as projectiles on August 24.

Police retreat after clashing with protesters on August 24.

Cell phones shine from the top of Lion Rock on August 23.

Protesters march under umbrellas on Sunday, August 18.

Tens of thousands of protesters showed up in the streets on August 18.

A protester participates in a march on Saturday, August 17. His eye is covered with red gauze, referencing a woman who was allegedly shot in the eye with a beanbag round during clashes between protesters and police.

Protesters point lasers at the Sham Shui Po police station on August 14.

A police officer falls over an airport luggage trolley during a scuffle with pro-democracy protesters on Tuesday, August 13. For two days, protesters flooded the airport. Check-ins were suspended and dozens of outgoing flights were canceled.

A traveler passes her luggage to security guards as she tries to enter the departures gate.

A display board shows canceled flights on August 13.

Medics look after a woman who received a facial injury during clashes on Sunday, August 11.

A pro-democracy protester is held by police outside the Tsim Sha Tsui police station on August 11.

Police fire tear gas at protesters during a demonstration in the Wong Tai Sin District on Monday, August 5.

A train passenger gestures toward a protester, right, who was preventing the doors of a train from closing on August 5. The protester was trying to disrupt Hong Kong's morning rush-hour commute.

A man comforts his pregnant wife near a train platform after protesters blocked the train doors on August 5.

A protester stands in tear gas during a confrontation with police in the early hours of Sunday, August 4.

A Chinese flag floats in water after it was thrown by protesters during a demonstration on Saturday, August 3.

Members of Hong Kong's medical sector attend a protest in Edinburgh Place on Friday, August 2.

The emblem on the China Liaison Office is protected by plexiglass during a demonstration on Sunday, July 28.

A protester flees from baton-wielding police in the Yuen Long district of Hong Kong on Saturday, July 27.

A protester looks through umbrellas during the clashes with police on July 27.

Travelers watch as protesters rally at Hong Kong's international airport on Friday, July 26.

Protesters clash with police on Sunday, July 21.

Masked men in white T-shirts are seen after attacking anti-extradition bill demonstrators at a train station in Yuen Long.

Medical workers help a protester affected by tear gas on July 21.

The office of pro-Beijing lawmaker Junius Ho was trashed by protesters in Hong Kong's Tsuen Wan district.

Police officers use pepper spray to disperse protesters after a rally in the Sheung Shui district on Saturday, July 13.

A demonstrator sprays paint inside a chamber at Hong Kong's Legislative Council building, where protesters forced their way in on Monday, July 1.

A protester smashes a window of the Legislative Council building.

Columns of sunlight are cast on a crowd during the march on July 1.

Helicopters carrying the flags of China and Hong Kong fly over demonstrators on July 1.

A police officer uses pepper spray during a clash with protesters on July 1.

A protester wearing a T-shirt with the word "revolution" walks past an inscription on a road that reads "Long Live HK."

Police detain protesters near the government headquarters in Hong Kong on July 1.

An overhead view shows thousands of protesters marching through a Hong Kong street on Sunday, June 16.

Protesters run after police fired tear gas on Wednesday, June 12.

By the morning of June 12, tens of thousands of mainly young people had arrived in the area, blocking streets and bringing central Hong Kong to a standstill.

A demonstrator holds a sign during the June 12 rally.

Police officers charge toward protesters during clashes on Monday, June 10. It was a continuation of protests that started the day before.

Protesters on June 9 waved placards and wore white -- the designated color of the rally. "Hong Kong, never give up!" some chanted.

Students wear chains during a demonstration on Saturday, June 8.

In pictures: Hong Kong unrest

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Beijing stands by law

The protests were sparked by new laws, proposed by the pro-Beijing Hong Kong administration, which would allow fugitives to be extradited to mainland China from Hong Kong.

Many protesters say they are worried the laws could be used to send political activists and dissidents from the city to China to face harsher punishments.

Publicly, the Chinese government has offered its support to Hong Kong Chief Executive Carrie Lam in her attempts to pass the bill.

HONG KONG, HONG KONG - JUNE 12: A police officer fire teargas during a protest on June 12, 2019 in Hong Kong China. Large crowds of protesters gathered in central Hong Kong as the city braced for another mass rally in a show of strength against the government over a divisive plan to allow extraditions to China. (Photo by Anthony Kwan/Getty Images)

Related article Hong Kong protests: Two people in serious condition as legislature on lock down

“The central government firmly supports the Hong Kong SAR government in advancing the amendment to the two ordinances,” Chinese Foreign Ministry spokesman Geng Shuang said Wednesday.

But expert Lam said while the central government in Beijing couldn’t be seen to back down, they would be wary of the possibility that ongoing protests could damage Hong Kong’s business sector at a time of growing pressure on China’s economy.

Hong Kong is allowed economic freedoms that are restricted to the rest of the country, which, tied with an unbiased court system left over from the UK colonial period, have led to many large Western businesses basing their lucrative China operations out of the city.

There is no end in sight to the trade war between the US and China after negotiations collapsed in early May and new tariffs were imposed by both sides on hundreds of billions of dollars of exports.

The Chinese government maintains it is not afraid of a trade war but there are already signs that the economy is continuing to slow. As more US businesses begin to look at investments outside of China, Hong Kong’s role as the country’s most economically liberal city is more important than ever.

“They need to give way to the fact that the Hong Kong economy will suffer tremendously, and hence the Chinese economy, if the protests continue,” said Lam.

On Wednesday, all mentions and images of the protests were quickly censored on Chinese social media, including Weibo and WeChat, leaving citizens across the border in Shenzhen largely in the dark about the mass demonstrations happening just miles away.

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'We have to let China know human rights have to be defended,' says Ai Weiwei

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Sensitive year for Beijing

In October, Beijing will celebrate the 70th anniversary of the founding of the People’s Republic of China. It’s a momentous occasion, that will mark the point at which the Chinese Communist Party surpasses that of the Soviet Union as the longest-ruling Communist Party in history. The Communist Party of the Soviet Union ruled that country from 1922 to 1991.

This year also marked the centenary of the May 4 movement, a 1919 student-led protest and the 30th anniversary of 1989 Tiananmen Square massacre, on June 4.

In order to ensure the year passes without controversy, high-profile activists have been quietly put under house arrest and internet censorship has been stepped up.

Protesters occupy a street during a rally against the extradition bill on June 12, 2019 in Hong Kong, China. Large crowds of protesters gathered in central Hong Kong as the city braced for another mass rally in a show of strength against the government over a divisive plan to allow extraditions to China. (Photo by Anthony Kwan/Getty Images)

Related article Hong Kong stocks fall as huge protests hit financial center

In this tightly-controlled atmosphere, mass public protests in one of the country’s most famous cities are likely to perceived as an unwanted headache.

Failure to handle the protests would reflect “very poorly” on Xi, Lam said. “He has (already) been subjected to internal criticism by senior party members for failing to handle Donald Trump, for failing to handle the larger Cold War between China and the US.”

Amid an atmosphere of deteriorating relations between China and the United States, Beijing has accused “foreign forces” of interfering in Hong Kong politics and helping to spark the protests.

“We resolutely oppose actions and words by any foreign forces to interfere in the legislative matters of the Hong Kong SAR,” Geng, the spokesman, said on Monday.

Beijing has long feared a so-called color revolution in its territory, following a string of uprisings that swept through former Soviet states, such as Ukraine in the early 2000s, disposing of long-established rulers. These fears were reinvigorated by the Arab Spring protests and revolutions beginning in 2010.

An editorial published Wednesday in the state-owned Global Times tabloid appeared to accuse protesters of “collusion” with foreign powers.

“Hong Kong citizens need to recognize those forces who try to deceive and mislead them and use them to realize their own interests,” the paper said.

Chinese officials have previously accused Western governments of being behind Hong Kong’s democracy movement, and cautioned residents of the potential turmoil that would result in an overthrow of the status-quo.

CNN’s Serenitie Wang contributed to this article.