Hong Kong S A R Hong Kong SAR

Hong Kong S. A. R. • 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 1940 s – 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 • 7 th 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 7 th 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. A 5) • ``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. A 8)

`` High Degree of Autonomy” • HKSAR enjoys executive, legislative, and independent judicial power, including that of final adjudication (B. L. A 2)

``HK People Running HK” • executive authorities and legislature shall be composed of permanent residents of Hong Kong (B. L. A 3) • 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. A 13 -14) • authorizes HKSAR to conduct relevant external affairs on its own (B. L. A 13) • HKSAR shall be responsible for the maintenance of public order • 11 PRC laws apply to HK (B. L. A 18)

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 – Carrie Lam (2017 -) – non-partisan • 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. A 45 & A 68) • The ultimate aim is the election of the Chief Executive and all the members of the Legislative Council by universal suffrage (B. L. A 45 & A 68)

S/election of Chief Executive • 1, 200 -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 • Carrie Lam (2017 - 2022) – no more than two consecutive terms

S/election of Legislative Council Elected by 1998 2000 2004 2008 2012 2016 5 geographical constituencies 20 24 30 30 35 35 29 functional constituencies 30 30 35 35 Election committee 10 6 0 0 Total 60 60 70 70

Since 1997 • Freedoms and rights substantially intact – dissident groups • • Judicial system remains the same Weak executive and strong civil service Lack of political skills Multiple political parties – Pro-establishment versus pro-democracy – New localist groups

Hong Kong’s Competitiveness • Geographic location – one of the best deep-water ports in the world

``World’s Freest Economy” • exports and imports each (over half a trillion US$) greater than GDP • GDP per capita (PPP) higher than in U. S. • no VAT, sales tax, or capital gains tax • only 3 types of income are taxed: – profits, salaries, and property • but – 30% live in public housing

Influence on Mainland China • • Main source of 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