Hundreds of members of members of China's People's Armed Police (PAP) were seen marching and conducting exercises in the city of Shenzhen near the Hong Kong border on Thursday, according to journalists on the scene.

Over 100 paramilitary vehicles, including armored personnel carriers and troop trucks, were seen parked at a stadium in Shenzhen, with troops marching in fatigues. At least two of the vehicles were carrying water cannons, according to a Reuters reporter.

The exercises come after ten weeks of pro-democracy demonstrations in semi-autonomous Hong Kong, including increasingly-violent confrontations between police and protesters. A sit-in by protesters at the Hong Kong International Airport prompted two days of flight cancellations.

In recent days, Chinese state media have posted videos of the PAP assembling in Shenzhen, while US President Donald Trump tweeted that US intelligence confirmed Chinese troop movements at the border.

China's ambassador to the UK issued a warning to protesters on Thursday, saying Beijing will not "sit on its hands and watch" if the situation continues to deteriorate.

"We have enough solutions and enough power within the limits of [the] Basic Law to quell any unrest swiftly," Ambassador Liu Xiaoming said. "Their moves are severe and violent offences, and already show signs of terrorism."

'Trucks aren't about to roll at this point'

Concerns have been rising about Beijing possibly intervening to put an end to the demonstrations, although diplomats and analysts believe Beijing has little desire to use the PAP or People's Liberation Army troops to halt the pro-democracy protests.

"We can be certain the regime understands that sending in troops to Hong Kong will inflame the protests and the protesters' anti-China grievances," James Char, a military expert at Singapore's Nanyang Technological University, told news agency AFP.

Read more: West reluctant to criticize China over Hong Kong stance

China has been ramping up its posturing in order to send a message to protesters in Hong Kong, a senior Western diplomat in Hong Kong told Reuters news agency, but the exercises "are still in the realms of propaganda."

"The trucks aren't about to roll at this point," the envoy said, speaking on condition of anonymity.

The Chinese government has repeatedly referred to the demonstrations as "near terrorism" and described the protests as rioting, with legal experts saying Beijing might use anti-terror laws to quell the demonstrations.

The ongoing demonstrations in Hong Kong have plunged the city into its worst crisis since it reverted from British to Chinese rule in 1997.

The protests began in opposition to a bill that would allow the territory to extradite people facing criminal charges to mainland China, but the movement has expanded to include wider calls for democracy.

Hong Kong protests rattle global firms Disneyland footfall drops The unrest in Hong Kong is prompting people to stay away from Walt Disney's Disneyland theme park in the city. The US company's chief executive, Bob Iger, told analysts that visits to the park were significantly suffering because of the protests. "We will feel it in the quarter that we’re currently in, and we’ll see how long the protests go on," he said on an earnings call.

Hong Kong protests rattle global firms Turbulence at Cathay Pacific Hong Kong's flagship carrier said ticket sales fell in July as fewer people travelled into the city. The protests are also hurting future bookings at the airline. Cathay Pacific found itself into further trouble after Beijing asked the airline to bar crew members who had taken part in the demonstrations from flying into mainland China.

Hong Kong protests rattle global firms Hotel business hit Intercontinental Hotels, which owns Crowne Plaza and Holiday Inn chains, said earlier this month the unrest in Hong Kong was hurting demand. Declining tourist and corporate arrivals are also putting a strain on the businesses of Marriot and Wynn hotels, who expect the protests to hit their second-half results.

Hong Kong protests rattle global firms Luxury shoppers stay away The unrest has taken a toll on popular luxury brands such as Cartier and Prada, which have built a strong presence in the city to cater to the rising affluent consumers from mainland China. Cartier-owner Richemont said its sales were hit because of store closures and a fall in tourist arrivals, especially from China. Italian fashion brand Prada's business was also affected by the protests.

Hong Kong protests rattle global firms Retail sales fall Retail sales, a key part of the city's economy, fell nearly 7% in June, hurt by the mass protests. Shopkeepers see a steeper fall in July and August. They say tourist arrivals halved last month.

Hong Kong protests rattle global firms 'Difficult economic environment' Hong Kong Financial Secretary Paul Chan warned on Sunday that the city was entering "a very difficult economic environment" amid weakening trade and slowing growth. He said the protests had hurt Hong Kong's reputation of being a safe city for tourists and businesses. The city's leader, Carrie Lam, has already warned of the economic fallout from the unrest. Author: Ashutosh Pandey



rs/rt (AFP, Reuters, AP)

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