Since the 1997 handover, Hong Kong's economic future became far more exposed to the challenges of economic globalisation and the direct competition from cities in mainland China. y The Hong Kong economy had recovered since the latter half of 2003. Hong Kong had dropped to the twelfth place and Singapore to sixth place Ten years before the handover most people predicted that Hong Kong's economy would slow down in the count down to 1997. PDF A Decade Later: Hong Kong's Economy Since 1997 By William ... Democratic development in Hong Kong has been a major issue since the transfer of sovereignty to the People's Republic of China in 1997. "The Chinese want a post-1997 Hong Kong that operates the way Hong Kong has always operated -- a government run for the benefit of business, a club conducted for and by business," Mr. Levin added. China's breakneck growth since the handover in 1997 means Hong Kong today is much less significant to Beijing in relative economic terms. On July 1, 1997, Hong Kong will become a Special Administrative Region of the PRC. Hong Kong's Handover to China. There is no doubt that, Hong Kong has been the biggest driving force behind China's rapid economic success recently. In 1997, Britain handed Hong Kong back to China in a one-country, two-systems agreement. More information about Hong Kong is available on the China Country Page and from other Department of State publications and other sources listed at the end of this fact sheet. Hong Kong includes 426 square miles of territory in the South China Sea, and it is today one of the most densely occupied and economically independent parts of . "Economic Growth and Structural Change in the Small Open Economy of Hong Kong". 3 Download Historical Data. Step 6 - PESTEL, PEST / STEP Analysis of Hong Kong's Financial Crisis--1997-98. At that moment, One Country, Two Systems (1C2S), the arrangement governing the On June 18, 2007, the Carnegie Endowment for International Peace hosted a talk entitled "Riding the Dragon: Hong Kong's Economic Developments since 1997" with Bernard Chan (President of Asia Financial Group and Asia Insurance) and Stephen Cheung (Professor and chair of the Department of Economics and Finance, City University of Hong Kong); Carnegie Endowment's Vice President for . Hong Kong gdp growth rate for 2018 was 2.85%, a 0.94% decline from 2017. The real estate market was booming, and the HSI peaked at 16,673 points in August. These developments, Simon Cartledge argues, can be attributed to the city's 'pro-business' constitution, which has held back change and led to the rise of an anti-establishment . There is no doubt that, Hong Kong has been the biggest driving force behind China's rapid economic success recently. For the movie's two leads, living in two different worlds generates fear about the loss of self and anxiety about the future. Minutes before midnight on June 30, in a ceremony at a convention center on . For a recent expose on the misdeeds of senior expatriate legal officials, see Hong Kong Economic Journal, 19 September 1996, p. 15. These links, however, were strengthened further after the return of Hong Kong to the Chinese sovereignty in 1997. In 1997, China needed Hong Kong as a port, aviation hub . James T. H. Tang, "World War to Cold War: Hong Kong's future and Anglo-Chinese interactions, 1941-55," in Chan, Precarious Balance, pp. In 1997, Hong Kong's economy was more than 18 percent the size of the economy of the mainland. Hong Kong economic growth for 2019 was $363.02B, a 0.37% increase from 2018. However, following the return of sovereignty to China in 1997, Hong Kong failed to transform into a high value-added economy as expected. Download Historical Data. A Decade Later: Hong Kong's Economy Since 1997 By William H. Overholt In the decade preceding Hong Kong's reversion to Chinese sovereignty, the principal theme in the Western media was the death of Hong Kong. Abstract: On July 1, 1997, Hong Kong's sovereignty was transferred from the hands of the British government back to its previous owner, China. The report notes that the Hong Kong economy's traditional strength has shifted rapidly from products "made in Hong Kong" to those "made by Hong Kong." Industry now contributes 9.3 percent of the territory's gross domestic product, compared to 23 percent 13 years ago. Like many other Asian economies, the Hong Kong economy suffered from the financial crisis of the late 1990s. Current research about the economic impact of this transition is disputed, with some arguing that the 1997 Handover had no effect on Hong Kong's economy and others finding a negative impact. This study Hong Kong first and Singapore third in the order of attractive business environment among 60 countries for the period between 1993 and 1997. Since 1997, Hong Kong's economic growth rate has dropped sharply, inequality has increased, and corruption has found its way to the highest levels of government. Aggregates. Finance, in one form or another, is Hong Kong's largest industry. FDI remained fairly constant, but rose dramatically in 1999 and 2000. 1982 - Britain and China begin talks on the future of Hong Kong. They maintained remarkably high growth rates (over 7%) from 1960s-1990s due to rapid industrialisation. The bursting of a property and stock market bubble in late 1997 and early 1998 has had a major and prolonged impact on consumer sentiment. Line Bar Map. In theory, Hong Kong maintains political and economic autonomy from the rest of China. What began in Thailand eventually impacted Malaysia, Singapore, Indonesia, the Philippines, Hong Kong and South Korea, all of which had registered impressive economic growth during . China will assume responsibilities for Hong Kong's foreign affairs and defense, but Hong Kong will remain a separate customs territory with a high degree of economic autonomy. Today, the figure is down to three percent. By looking at the economic performance since the 1980s, this book focuses on analysing the . Under . Protecting Intellectual Property World Bank national accounts data, and OECD National Accounts data files. The prolonged post-Asian Financial Crisis economic recession in Hong Kong requires a new analysis. None. June 25, 1997. But while the existence of a capitalist enclave presents no major problems for the People's Republic, the government in Beijing will find it much more difficult to tolerate recent . The economy of Hong Kong was on the rise and it was booming with trade. Although China has vowed to preserve the vibrant . The size of Hong Kong's economy may only be equivalent to 2.7% of mainland China's now, down from 18.4% in 1997 when it reverted to Chinese rule, but the territory punches above its weight due . The real GDP of Hong Kong fell from 1997 to 1998 and then began an erratic, laboured recovery. The financial crisis began in July 1997, and rose to worldwide economic meltdown due to financial contagion. Learn how Hong Kong has changed since then, including for travelers, and where the city might be headed. Since late 1997, Hong Kong's economy has been grappling with a painful restructuring that has seen asset prices drop considerably and unemployment rise to a record level of over 7%. On July 1, 1997, Hong Kong will become a Special Administrative Region of China, assured of the continuation of all those elements that have made Hong Kong's success possible: a separate c u stoms . It contributed to 93% of the GDP in 2019 and accounted for 89% of the total employment in 2020. of the Hong Kong economy through the 1990s until the regional economic slump from late 1997, Hong Kong's long-term growth rate appears to have been falling. 1984 - Britain and China sign Joint Declaration on the conditions under which Hong Kong will revert to Chinese rule in 1997. The United Kingdom returned Hong Kong to Chinese sovereignty after more than 150 years of colonial rule. For the twentieth consecutive year, theIndex of Economic Freedom—compiled by The Wall Street Journal and the Heritage Foundation—ranks Hong Kong (HK) as the freest economy in the world.. Hong Kong accounted for 3.3% of the world's total merchandise trade in 1998, compared with 3.62% in 1997. In the early 1980s there was another negative shock related to politics, as the terms of Hong Kong's return to PRC control in 1997 were formalized. In the renowned Hong Kong crime thriller Infernal Affairs (2002), the film's two main characters struggle to remember who they really are as they spend years undercover on opposite sides of the battle between the Hong Kong Police Force and the criminal Triads. Since then, the economies of Hong Kong and the mainland have increasingly intertwined, and Hong Kong and the mainland have become one another's foremost partner in both trade and . Although most of the six speakers alluded to the July 1 change, Mr. Levin was the only one to discuss it in detail. Since the reforms begun in 1978, Hong Kong's continued importance to the Chinese economy has ensured that its free market economy will be left intact after 1997. By Todd Crowell Special to The Christian Science Monitor. Hong Kong After 1997 - Aall & Zyleman Company Limited. Floods of immigrants came to Hong Kong, and started to create many small businesses. ), Export-Oriented Development Strategies: The Success of Five Newly Industrializing Countries. Before the Asian Financial Crisis, Asian countries such as South Korea, Singapore, Taiwan and Hong Kong experienced rapid growth and was often referred as the Asian Tiger Economies. The first was Hong Kong's reversion to the People's Republic of China, on 1 July 1997, and its designation as a Special Administrative Region (SAR) with a high degree of autonomy with regard to economic (and most other) policies under the "one country, two systems" framework established in accordance with the Basic Law. It's the Economy: Explaining Hong Kong's Identity Change after 1997 Weiwen Yin, Youlang Zhang1 weiwen.yin@tamu.edu zhangyoulang@tamu.edu Texas A&M University Abstract: Scholars and practitioners have provided two main explanations for the rising exclusive localism identity in Hong Kong: the rising economic pressures on Hong Kong is a Special […] Reintegration with China, 1978-1997. After 150 years as a British colony, Hong Kong was handed over under the watchful eye of then governor Chris Patten on July 1, 1997. To understand how Hong Kong relates to China, it helps to look back at the First China War, better known as the Opium War.By the 19 th century, British merchants were reaping profits by trading in Chinese goods like tea . These links, however, were strengthened further after the return of Hong Kong to the Chinese sovereignty in 1997. I n June 1997, a financial crisis emerged that swept across most of the tiger economies of Southeast Asia and major players in East Asia; it even had significant repercussions across the globe in the United States. it happened as the asian financial crisis began to unfold. the Hong Kong Garrison Law, the garrison will not take part in policing or any other public security duties unless the territory was threatened by serious unrest.3 One reason for the limited PLA presence in post-1997 Hong Kong is the lack of major military facilities in the territory, especially for the air force and navy. Like most political documents, the jointly negotiated constitution for post-1997 Hong Kong (called "The Basic Law") is open to alternative interpretations, depending on how one chooses to define such general concepts as "national security," "free press," and "economic system.". But while the existence of a capitalist enclave presents no major problems for the People's Republic, the government in Beijing will find it much more difficult to tolerate recent . The PLA Three cheers for Hong Kong, that tiny chunk of Southeast Asian rock. Since then, the economies of Hong Kong and the mainland have increasingly intertwined, and Hong Kong and the mainland have become one another's foremost partner in both trade and . the Hong Kong economy is not 1997 but 1979, the year of China's opening. The annual GDP growth rate dropped from 9.0% in the 1970s to 6.5% in the 1980s and to 5.2% during the first seven years of the 1990s. This declaration stipulated that Hong Kong would become a part of China on July 1, 1997, but that the "current social and economic systems" and "life-style" in Hong Kong would remain the . the Hong Kong economy is not 1997 but 1979, the year of China's opening. Hong Kong, which had lost its hinterland during the Cold War era, regained it that year. Between 2003 and 2006, the . Hong Kong economic growth for 2018 was $361.69B, a 5.99% increase from 2017. Hong Kong gdp growth rate for 2017 was 3.79%, a 1.62% increase from 2016. Protests have broken out recently in Hong Kong over attempts by China's central government to assert its authority over the Special . The Government of the Hong Kong Special Administrative Region of the People's Republic of China is led by the Chief Executive, the head of government. Moreover, the Basic Law, China's recently enacted constitution for Hong Kong, is not demo-cratic, and it can and will be used to subvert freedom and the free market. Hong Kong did not suffer from these structural and systemic weaknesses. The Shanghai municipal government dreamt of turning the city into China's main economic centre by as early as 2010. We see the growing social discontent and political contentions emerging in post-colonial Hong Kong as symptoms The one country, two systems principle allows the Hong Kong government to administer all areas of government except foreign relations and (military) defence separately from the national Chinese government.Many Hong Kong citizens became concerned about . When comparing Hong Kong's economic growth to that of other countries during the 15 years from 1997 to 2012, the results highlight the dilemma Hong Kong has faced for the past decade. HONG KONG. On 7/1/97, Hong Kong reverted back to Chinese control from British control. A Chinese diplomat in London said the declaration . In 1997, the British handed Hong Kong back to China, the end of a 99-year lease and an event that was dreaded and anticipated by the residents, Chinese, English, and rest of the world. Hong Kong gdp growth rate for 2020 was -6.08%, a 4.4% decline from 2019. Hong Kong during this period had trouble housing some immigrants, but during this time, all of a sudden during the 1950s, Hong Kong struck success in the textile industry. Hong Kong during this period had trouble housing some immigrants, but during this time, all of a sudden during the 1950s, Hong Kong struck success in the textile industry. GDP growth (annual %) - Hong Kong SAR, China. Governance Crisis in Post-1997 Hong Kong: A Political Economy Perspective Tai-lok Lui and Stephen W. K. Chiu* Abstract This paper is an attempt to analyse the origins of the present governance crisis in post-1997 Hong Kong. The services sector is very important to the Hong Kong economy. Floods of immigrants came to Hong Kong, and started to create many small businesses. The Different Fate of Thailand and Hong Kong During 1997 Asian Financial Crisis The 1997 Asian financial crisis was a disaster that obsessed much of Southeast Asian countries. The Open Door Policy of the PRC announced by Deng Xiao-ping at the end of 1978 marked a new era for Hong Kong's economy. As for Hong Kong's trade in services, total trade in services amounted to HK$1,411.1 billion (US$180.1 billion) or about 49% of GDP in 2019. The pace of GDP growth did not pick up in a sustained way until after 2003.3 The economic difficulties of Hong Kong during this period from the Economic policies Hong Kong's approach to economic poli-cymaking provided an environment that encouraged market forces and helped main-tain business confidence during the run-up to the return to Chinese sovereignty in 1997. Total trade in goods for the first quarter of 1999 decreased by 11.6% year-on-year. However, leading international opinion at the time was bearish on the city's economic future with China. The economic ties between mainland China and Hong Kong have been in existence ever since 1970s. The economy of Hong Kong was on the rise and it was booming with trade. In Vittorio Corbo, Ann O. Krueger and Fernando Ossa (Eds. Under . Hong Kong SAR, China: Hong Kong is the premier financial and business center in China and a regional financial leader. In 1997, Hong Kong's economy was more resilient than its Asian peers. Hong Kong fifty more years of capitalism after 1997, is worthless. 4 Finance & Development / September 1997 Chart 2 Hong Kong, China is a world leader in total factor . Hong Kong gdp growth rate for 2019 was -1.68%, a 4.53% decline from 2018. Download PDF | Back to Issue 15 When the clock struck midnight on June 30, 1997, the blue British ensign flying over Victoria Harbor was lowered, and the red orchid flag of Hong Kong was raised. 9. 1997/1998, the slow-down of the global economy in 2001 and the outbreak of Severe Acute Respiratory Syndrome (SARS) in the early 2003, the Hong Kong economy experienced a setback. There were many and varied predictions of what Hong Kong would become after the handover in 1997-of course most of them proved to be wrong. License : CC BY-4.0. 120-21. The average annual economic growth between 1997 and 2002 was 1.9%. The economic ties between mainland China and Hong Kong have been in existence ever since 1970s. Though part of mainland China since the British ceded it in 1997, HK is governed locally on a daily basis. Hong Kong was a British colony between 1842 and 1997. Their projected rankings for 1999-2003 have been changed since the Asian economic turmoil started in mid-1997. The lease ended in 1997, at which time Britain returned Hong Kong to China as a Special Administrative Region (SAR) called the Hong Kong Special Administrative Region of the People's Republic of . Hong Kong was the world's 10th-largest exporter of services in 1998, and the world's 12th-largest services trading entity. U.S.-HONG KONG RELATIONS In 1997, China resumed the exercise of sovereignty over Hong Kong, ending more than 150 years of British colonial rule. 1984 - Britain and China sign Joint Declaration on the conditions under which Hong Kong will revert to Chinese rule in 1997. in Hong Kong. In particular, Shanghai claimed to have a geographical advantage. Mainland China produces 30 times as many goods and . The Close Economic Partnership Agreement also facilitated the integration of the business activities of China and Hong Kong. Financial services, logistics, and retail became driving forces of the economy. After 1997, sustained public debate emerged in Hong Kong over a suite of cultural issues, yet international analyses of the handover predictably continue to emphasize economic forecasts as if . Hong Kong economic growth for 2017 was $341.24B, a 6.36% increase from 2016. 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