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Hong Kong. One Country, Two Systems. 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

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Hong kong l.jpg

Hong Kong

One Country, Two Systems


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Land & People

  • 422 square miles

    • Hong Kong Island

    • Kowloon Peninsular

    • New Territories

    • Outlying islands

  • 7 million residents

    • 95% Chinese


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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”


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Negotiations between PRC & UK

  • Deng Xiaoping: “1 country, 2 systems”

  • PRC Constitution of 1982: S.A.R.

  • PRC & UK Joint Declaration in 1984


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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


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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


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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”


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``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)


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`` High Degree of Autonomy”

  • HKSAR enjoys executive, legislative, and independent judicial power, including that of final adjudication (B.L. A2)


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``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


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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)


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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


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3 Branches of Political Structure

  • Chief Executive

    • Donald Tsang

  • Legislative Council

  • Court of Final Appeal


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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)


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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

  • Donald Tsang (2005 - 2012)

    • no more than two consecutive terms



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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


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Hong Kong’s Competitiveness

  • Geographic location

    • one of the best deep-water ports in the world

  • hardworking well-educated workforce

    • literacy rate 94%


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``World’s Freest Economy”

  • exports & imports each (>US$300b) > GDP

  • GDP per capita: US$42,000 (PPP)

  • 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


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Influence on Mainland China

  • US$220 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