As Hong Kong reels from seemingly endless unrest, Chinese President Xi Jinping’s options to resolve the conflict aren’t great.

A soft approach toward protesters addressing demands for democracy could show dissidents on the mainland that widespread upheaval can bring about political change, something that may imperil the Communist Party’s grip on power. At the same time, sending in Chinese troops to restore order risks an international backlash that may do irreparable harm to the city’s economy with no guarantee of success.

As such, there’s no end in sight to Hong Kong protests that began in June to oppose a bill that would allow extraditions to China. On Monday, police again fired tear gas to disperse crowds after a general strike disrupted the morning commute and led to the cancellation of more than 100 flights -- one of the most costly days in nine weeks of demonstrations.

“It’s not clear that they’ve decided on any approach,” said Ivan Choy, a political scientist at the Chinese University of Hong Kong, who added that Xi’s government may try to buy time by asking a group of key residents in the city to offer suggestions. “One of the major considerations of the Beijing authorities is they want to have social order restored first, and only after that you will consider some adjustments of the policies.”

The lack of a clear way forward has prompted Beijing to firmly support Chief Executive Carrie Lam, who again refused to resign in a press briefing Monday while accusing demonstrators of “trying to ruin Hong Kong.” She ordered the police to hold daily press briefings as her administration seeks to win over public opinion, which so far has been firmly on the side of the protesters.

On Tuesday, officials from the Hong Kong and Macau Affairs Office in Beijing reiterated support for Lam with some of the government’s strongest language yet about the unrest. Office spokesman Yang Guang urged a firmer pushback against violent protesters, saying “those who play with fire will perish by it.”

The strike on Monday underscored the rising costs to a city that has seen its economic power diminish in relation to the mainland as China’s growth has surged in recent decades. One key indicator, the IHS Markit PMI for Hong Kong, sank to its lowest level since March 2009 when the fallout from the global financial crisis was still raging.

China is hoping to win over the Hong Kong public by underscoring the economic damage while also bringing charges against violent protesters, according to Wang Huiyao, a Beijing-based adviser to China’s cabinet and the founder of the Center for China and Globalization.

But so far that hasn’t worked to stop protests fueled by students who see little economic future in the city.

Military Option

“For most of the demonstrators, the sense is this might be the last time we can fight, it might be the last time they can do this,“ said Steve Tsang, director of the China Institute at London’s School of Oriental and African Studies. “It is the last stand. That’s the way a lot of people in Hong Kong are feeling.”

While the protesters will likely continue hitting the streets and confronting police with rocks and other weapons, Tsang said China would only deploy troops or riot police if demonstrators firebombed or breached Beijing’s liaison office in the city. In recent weeks, Chinese state-media has firmly backed Hong Kong’s police to restore order.

Any deployment of the People’s Liberation Army or People’s Armed Police, which handles domestic unrest, risks shredding Hong Kong’s reputation in the eyes of the world. That would include both foreign firms and western nations such as the U.S., which could upend the financial hub by revoking the territory’s special trading status that protects it from the broader trade war.

‘Pragmatism’

Still, when it comes to China’s sovereignty, nothing can be ruled out. Yang on Tuesday repeated accusations that the U.S. has been stoking unrest, citing government statements and meetings supporting protesters. Such claims help could lay the groundwork for intervention.

“Beijing’s patience may be wearing thin,” said Bonnie Glaser, a senior adviser for Asia at the Center for Strategic and International Studies. “The Chinese could pressure Carrie Lam to arrest large numbers of protesters. They are undoubtedly discussing whether to send in PLA troops to restore order.”

Nonetheless, using troops to quell unrest could easily backfire.

“There’s a pragmatism here to the relatively low profile from Beijing,” said Tim Summers, a Hong Kong-based senior consulting fellow with London’s Chatham House. “China has been relatively low profile not just because of international scrutiny but because of a calculation that doing something tougher might actually make the situation worse.”

— With assistance by Dandan Li, and Sheryl Tian Tong Lee