Hong Kong Hong Kong SAR

Land & People 422 square miles –Hong Kong Island –Kowloon Peninsular –New Territories –Outlying islands 7 million residents –95% Chinese

Brief History HK Island was occupied by UK in 1841 New Territories on 99-year lease in 1898 Occupied by Japan during World War II Shanghai enterprises fled CCP forces in late 1940s –industrialization of Hong Kong One of the four ``Asian Tigers”

Negotiations with UK Deng Xiaoping: “1 country, 2 systems” PRC Constitution of 1982: S.A.R. PRC & UK Joint Declaration in 1984

Handover to PRC 7th National People’s Congress adopted Basic Law of HKSAR in Beijing in 1990 Became Hong Kong Special Administrative Region of PRC in July 1, 1997

Basic Law of Hong Kong SAR Stipulated in PRC-UK Joint Declaration in 1984 Drafted by a committee with members from both Hong Kong and mainland Adopted by 7th NPC in Beijing in 1990 Came into effect on July 1, 1997 Constitutional document for HKSAR

3 Principles in the Basic Law ``One Country, Two Systems” –Capitalist system and way of life shall remain unchanged for 50 years (B.L. A5) ``High Degree of Autonomy” ``Hong Kong People Running Hong Kong”

``One Country, Two Systems” Legal system (British common law) shall be maintained, except for any law that contravene the Basic Law and subject to amendment by the legislature (B.L. A8)

`` High Degree of Autonomy” HKSAR enjoys executive, legislative, and independent judicial power, including that of final adjudication (B.L. A2)

``HK People Running HK” executive authorities and legislature shall be composed of permanent residents of Hong Kong (B.L. A3) public servants must be permanent residents of Hong Kong, with some exceptions

Central People’s Government responsible for defense and foreign affairs relating to HKSAR (B.L. A13-14) authorizes HKSAR to conduct relevant external affairs on its own (B.L. A13) HKSAR shall be responsible for the maintenance of public order 11 PRC laws apply to HK (B.L. A18)

Rights and Freedoms freedom of speech, of the press, of publication, of association, of assembly, of procession, of demonstration, of communication, of movement, of conscience, of religious belief, of marriage.. the right and freedom to form and join trade unions, and to strike

3 Branches of Political Structure Chief Executive –C. Y. Leung Legislative Council Court of Final Appeal

S/election of CE & Legco Shall be specified in the light of the actual situation in the HKSAR and in accordance with the principle of gradual and orderly progress (B.L. A45 & A68) The ultimate aim is the election of the Chief Executive and all the members of the Legislative Council by universal suffrage (B.L. A45 & A68)

S/election of Chief Executive 800-member Election Committee –industrial, commercial, and financial sectors 1/4 –the professions 1/4 –labor, social services, religious, & other 1/4 –Legco, HK deputies to NPC, etc. 1/4 C. Y. Leung ( ) –no more than two consecutive terms

S/election of 60-member Legco

Since 1997 Freedoms and rights substantially intact –dissident groups –Falun Gong Judicial system remains the same Weak executive and strong civil service Lack of political skills Multiple political parties

Hong Kong’s Competitiveness Geographic location –one of the best deep-water ports in the world hardworking well-educated workforce –literacy rate 94%

``World’s Freest Economy” exports and imports each (around half a trillion US$) greater than GDP GDP per capita (PPP): US$52,700 (14th) no VAT, sales tax, or capital gains tax only 3 types of income are taxed: –profits, salaries, and property but –31% live in public housing

Influence on Mainland China US$400 billion direct investment each way Hong Kong bodies of law and expertise Hong Kong attracts talents from mainland Hong Kong radios, TV, newspapers, magazines, and Internet on mainland