HONG KONG -- China's strategy for dealing with the political situation in Hong Kong in the aftermath of the massive rallies last month -- when more than half a million people took to the streets -- is two-pronged: On one hand, Beijing is waging a massive economic campaign to prop up the Hong Kong economy. On the other hand, it is issuing strong statements warning people in the territory against attempting to step up the pace of democratization.

In a series of toughly worded commentaries in the official China Daily newspaper, Beijing has decreed that stability, not democracy, is most important. On July 10, the China Daily warned: "It is high time for the 'democrats' to cool down. If they cling obstinately to their course of creating disturbance, they will find themselves standing opposed to the people."

Four days later, another commentary warned the "democratic" camp against "transplanting Western political systems to Hong Kong." Then, on July 24, the paper warned ominously that "pushing too hard on democracy will be fatal."