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Unformatted text preview: egration is slow. Sovereignty Reversion
Hong Kong became an SAR on 1 July 1997 under the “one
country, two systems” framework.
Governed by the Basic Law that maintained Hong Kong’s
capitalist economy. Self-rule principle ensures local
autonomy except in areas of sovereignty, diplomacy and
Before 1997 Handover: Political Concern.
After 1997 Financial Crisis: Economic Concern.
2 schools on post-1997 Hong Kong:
Hong Kong will lose many of its pre-1997 characteristics;
become another advanced Chinese city.
“Hostage effect” where the Mainland will keep Hong Kong
stable due to its large investment in the Mainland. Structural Problems and Limitations of
Hong Kong’s Growth before 1997
Opening of China in 1979 was opportune for Hong
Relocating the labour-intensive processing to China, it
led to the export-oriented industrialization of
Guangdong. Hong Kong can concentrate on the higher
Outward processing generates wealth for Hong Kong
but the gain is once-for-all.
By the time of Hong Kong’s reversion, the process of
relocating labour intensive manufacturing...
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- Spring '14