This article focuses on the Red China's struggle for respectability and recent exploitation of Hong Kong's Mercantilism by it. Because of its exposed position, Hong Kong, China, is sensitive every policy innuendo affecting the mainland. Hong Kong's preoccupation is trade and especially trade with Red China. The colony's economic barometer flutters nervously with every shift in the cold war policy line. Recently, the immediate result of the British announcement, for the lifting of the ban on shipments of rubber from Malaya to China, was a bad case of jitters. Some Hong Kong traders shared the buoyancy of those in Singapore who bid up rubber futures. In early June 1956, after the removal of the Malayan rubber restrictions, editors of the newspaper, "China Mail," conceded that Red China would hardly be willing to settle for half a loaf.