Should US jewelers lose sleep over Hong Kong?

but were turned away easily. They promised to try again. If they do get in, it is guaranteed that Xi will send in the People’s Liberation Army (PLA). Anyone remember Tiananmen Square?

The thousands of students, of course, blocked traffic (Hong Kong is a small and hilly city with few major roads) and the trolleys are not running. Buses and subways are operating only sporadically. The Umbrella demonstrations have been extremely peaceful. Nevertheless, Xi has cut communications between Hong Kong and China.

Journalists and editors are being beaten and judges, classically independent under British law, are being “persuaded” to be “patriotic” to the Communist line.

The government’s ill-advised use of tear gas and pepper spray on the peaceful protestors was an obvious miscalculation; “like prodding a hornet’s nest with a stick” wrote one newspaper correspondent. In what should be taken as a sign of admitting their mistake, representatives of the police went into the crowds to apologize the next day. After that, tensions cooled somewhat.

Stores now are returning to normal, with little or no damage, a sign of the caring and peaceful marchers.  Protesters remain but are trying to help restore traffic order. They have, however, built medical positions every 1,000 yards with water stations in between--they, seemingly, are not about to give up anytime soon.

It appears Hong Kong is experiencing calm before the storm. The storm could be the PLA.

So, how could all this affect the U.S. jeweler? Some facts about doing business in Hong Kong:
-- Seasonal orders, estimated by a Hong Kong trade association, in the neighborhood of $550 million have been placed with Hong Kong companies.
-- Last-minute orders for Christmas delivery could be disrupted.

What should the U.S. jeweler do under these circumstances?
1) Keep in extremely close contact with your suppliers using email, not the phone. Telephones are reportedly being tapped.
2) Immediately contact, via email, the suppliers you’re working with for 2014 Christmas. Ask: Will deliveries be delayed? If so, can orders be shipped via the city of Shenzhen as an alternative?
3) If you own molds or models and are kept with your Hong Kong factories for safe keeping have them shipped, via FedEx, to your office if the situation worsens.
4) If shipment cannot be made in a timely manner for Christmas cancel the orders and request a refund of your deposit.
5) Do not discuss the location of the factory in an email and especially not on the phone.
6) Jewelers planning to visit Hong Kong this year for their 2015 design and merchandise plans should delay their visit until the situation settles down. If it doesn’t, start a search for a replacement country soon. It will be difficult, however, to find a similar location.  

Hopefully, this civil unrest will end with a peaceful resolution soon. What a shame if it doesn’t. Please stay tuned.