Hong Kong

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香港 Xiānggǎng
Hong Kong
Flag
GovernmentSpecial Administrative Region
Official languageChinese, English
Area426.4 sq. miles
Population 20076.92 million
GDP 2006$188.8 billion
GDP per capita$27,600
CurrencyHong Kong dollar


Hong Kong (Traditional Chinese and Simplified Chinese: 香港; Hanyu Pinyin: Xiānggǎng; Jyutping: Hoeng1 Gong2) is a Special Administrative Region of China, situated at the mouth of the Pearl River in southern China, opposite the former Portuguese possession of Macau. It consists of Hong Kong, Lamma, Lantau and various smaller islands, and Kowloon and the New Territories on the Chinese mainland. The name Hong Kong means fragrant harbour.

The population of Hong Kong is about 7 million people. The largest urban areas are Kowloon (With a population about 2 million), Central, Tsuen Wan and Sha Tin. Property prices in Hong Kong's Central District are the second most expensive in the world, after those of central Tokyo.

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People

Hong Kong's population has increased steadily over the past decade, reaching about 6.92 million in 2007. Hong Kong is one of the most densely populated areas in the world, with an overall density of some 6,250 people per square kilometer. Cantonese, the official Chinese language in Hong Kong, is spoken by most of the population. English, also an official language, is widely understood, being spoken by more than one-third of the population. Every major religion is practiced freely in Hong Kong. All children are required by law to be in full-time education between the ages of 6 and 15. Preschool education for most children begins at age 3. Primary school begins normally at the age of 6 and lasts for 6 years. At about age 12, children progress to a 3-year course of junior secondary education. Most stay on for a 2-year senior secondary course, while others join full-time vocational training. More than 90% of children complete upper secondary education or equivalent vocational education.

  • Population (mid-2007): 6.92 million.
  • Population growth rate (2006): 0.6%.
  • Ethnic groups: Chinese 95%; other 5%.
  • Religions: About 43% participate in some form of religious practice. Christian, about 9.6%.
  • Languages: Cantonese (a dialect of Chinese) and English are official.
  • Education: Literacy--97.1% (98.7% male, 95.4% female).
  • Health (2006): Infant mortality rate--1.8/1,000. Life expectancy--82.6 yrs. (overall); 79.5 yrs. males, 85.6 yrs. females.
  • Work force (2007): 3.65 million. Wholesale, retail, and import/export trades and restaurants and hotels--28.8%; finance, insurance, real estate, and business services--13.8%; manufacturing--4.3%.

The arts

Hong Kong has the world's third largest film industry after Bollywood and Hollywood. Most films are produced in the Cantonese language, although a few Hong Kong stars, such as Jackie Chan are known internationally.

Government and Political Conditions

The Hong Kong Special Administrative Region (SAR) is headed by Chief Executive Donald Tsang, who first took office in 2005 and whose current term ends in 2012. The Election Committee that votes on the Chief Executive (CE) is made up of approximately 800 Hong Kong residents from four constituency groups: commercial, industrial, and financial interests; professionals; labor, social services, and religious interests; and the legislature, the Chinese People's Political Consultative Conference, and the P.R.C. National People's Congress.

In December 2006, pro-democracy Civic Party legislator Alan Leong garnered 134 nominations from the Election Committee, enabling Leong to challenge incumbent CE Tsang's bid for a new five-year term in 2007. Tsang, with solid support from the pro-government and pro-business sectors, won the March 25, 2007 Election Committee vote with 649 of the 795 votes. Leong garnered 123 votes.

In July 2002, the Hong Kong Government implemented the Principal Officials Accountability System, which was designed to make the government more responsive to public concerns. Twelve political appointees, directly responsible to the Chief Executive, run the 12 policy bureaus. Three other senior civil service positions--the Chief Secretary, Financial Secretary, and Justice Secretary--are also filled by political appointments.

While Hong Kong remains a free and open society where human rights are respected, courts are independent, and there is well-established respect for the rule of law, residents are limited in their ability to change their government, and the legislature is limited in its power to affect government policies. The September 12, 2004 Legislative Council (Legco) elections were seen as generally free, open, and widely contested, although Hong Kong groups have alleged voter intimidation, manipulation, or pressure in connection with them.

In December 2005 the Legco rejected a Hong Kong Government-proposed package of incremental reforms to the mechanisms for choosing the CE in 2007 and forming the Legco in 2008. In July 2007, the Hong Kong Government's Commission on Strategic Development issued a Green Paper on Constitutional Development, which set out a myriad of options to reform the CE and Legco electoral mechanisms, with the "ultimate aim" of universal suffrage as prescribed by the Basic Law.

On December 12, 2007, Chief Executive Donald Tsang submitted a report on the Green Paper to the central government. The report said more than half of local people wanted universal suffrage by 2012, but 2017 might be a more realistic date. In December 2007, the P.R.C. National People's Congress Standing Committee (NPCSC) issued a decision on Hong Kong's constitutional development which, while ruling out universal suffrage in 2012, appears to open the way for Hong Kong to achieve full universal suffrage for the CE in 2017, and full universal suffrage for Legco sometime thereafter. Any amendments to the Basic Law will require approval by the CE, at least two-thirds of Legco, and then the NPCSC.

Principal Government Officials

  • Chief Executive--Donald Tsang
  • Chief Secretary for Administration--Henry Tang
  • Financial Secretary--John Tsang
  • Secretary for Justice--Wong Yan Lung, SC
  • Secretary for Education--Michael Suen
  • Secretary for Commerce and Economic Development--Frederick Ma
  • Secretary for Constitutional and Mainland Affairs--Stephen Lam
  • Secretary for Security--Ambrose Lee
  • Secretary for Food and Health--York Chow
  • Secretary for the Civil Service--Denise Yue
  • Secretary for Home Affairs--Tsang Tak-sing
  • Secretary for Labour and Welfare--Matthew Cheung
  • Secretary for Financial Services and the Treasury--K C Chan
  • Secretary for Development--Carrie Lam
  • Secretary for the Environment--Edward Yau
  • Secretary for Transport and Housing--Eva Cheng

Foreign Relations

Hong Kong's foreign relations and defense are the responsibility of China. Hong Kong is an independent customs territory and economic entity separate from the rest of China and is able to enter into international agreements on its own behalf in commercial and economic matters. Hong Kong, independently of China, participates as a full member of numerous international economic organizations including the World Trade Organization (WTO), the Asia Pacific Economic Cooperation forum (APEC), and the Financial Action Task Force (FATF).

The Hong Kong skyline.
The Hong Kong skyline.

Economy

Hong Kong is one of the world's most open and dynamic economies. Hong Kong per capita GDP is comparable to other developed countries. Real GDP expanded by 6.8% in 2006 year-on-year, driven by thriving exports, vibrant inbound tourism and strong consumer spending. Severe acute respiratory syndrome (SARS) caused the Hong Kong economy to shrink during the first half of 2003, and property prices had fallen 66% from their late 1997 peak, but have since rebounded by about 84% from that lower base. The unemployment rate declined to 3.6% in September-November 2007, the lowest level since mid-1998. The surplus for fiscal year 2007-08 was $7.5 billion or 4.0% of GDP, attributed to the robust economy, increased corporate profits and salaries, the buoyant stock market, and a stable property market.

Hong Kong enjoys a number of economic strengths, including accumulated public and private wealth from decades of unprecedented growth, a sound banking system, virtually no public debt, a strong legal system, and an able and rigorously enforced anti-corruption regime. The need for economic restructuring poses difficult challenges and choices for the government. Hong Kong is endeavoring to improve its attractiveness as a commercial and trading center, especially after China's entry into the World Trade Organization (WTO), and continues to refine its financial architecture. The government is deepening its economic interaction with the Pearl River Delta in an effort to maintain Hong Kong's position as a gateway to China. These efforts include the conclusion of a free trade agreement with China, the Closer Economic Partnership Arrangement (CEPA), which applies zero tariffs to all Hong Kong-origin goods and preferential treatment in 27 service sectors. Hong Kong, along with the Macau SAR, is also participating in a new pan-Pearl River Delta trade block with nine Chinese provinces, which aims to lower trade barriers among members, standardize regulations, and improve infrastructure. U.S. companies have a generally favorable view of Hong Kong's business environment, including its legal system and the free flow of information, low taxation, and infrastructure. The American Chamber of Commerce's annual business confidence survey, released in December 2007, showed 99% of respondents had a "good" or "satisfactory" outlook for 2008. Survey results indicated a positive economic outlook through 2010.

On the international front, Hong Kong is a separate and active member of the WTO and the Asia Pacific Economic Cooperation (APEC) forum, where it is an articulate and effective champion of free markets and the reduction of trade barriers. Hong Kong residents across the political spectrum supported China's accession to the WTO, believing this would open new opportunities on the mainland for local firms and stabilize relations between Hong Kong's two most important trade and investment partners, the United States and China.

  • GDP (2006): $188.8 billion.
  • GDP real growth rate (2006): 6.8%.
  • Per capita GDP (2006): $27,600.
  • Natural resources: Outstanding deepwater harbor.
  • Industry: Types--textiles, clothing, electronics, plastics, toys, watches, clocks.
  • Trade: Exports--$315.5 billion: clothing, electronics, textiles, watches and clocks, office machinery. Imports--$333.3 billion: consumer goods, raw materials and semi-manufactures, capital goods, foodstuffs, fuels.

History

British Crown Colony flag, in use until 1997
British Crown Colony flag, in use until 1997

Before 1997, Hong Kong was a British crown colony. The island had been ceded to Britain in perpetuity by the Treaty of Nanjing in 1842 at the conclusion of the Opium War (having been occupied by British forces in 1839), and Kowloon was ceded in 1860, but the New Territories had only been leased in 1898 for 99 years in an agreement with the Qing government (using the "preferred nation status" of the British empire at the time).

Hong Kong was invaded and occupied by Japan in December 1941. Many of its people were forced to leave, while those who remained were forced to change their Hong Kong dollars into Japanese Military Yen at a very unfavourable exchange rate. The occupation was an extremely difficult time for the locals, who had difficulty finding provisions, and more so for both civilian Allied citizens who were interned in a prison camp at Stanley, and Allied military personnel, who were made prisoners of war and forced to work for the Japanese in harsh conditions with much ill-treatment. Hong Kong was finally liberated by the British in August 1945 after the Japanese surrender.

In the late 1970's and early 1980's, the United Kingdom approached China as to the return of their reversion to China. The Chinese government were adamant that the whole of Hong Kong should be returned to China and not just the New Territories. Margaret Thatcher, the Prime Minister at the time wanted to hold out for continued British rule in some form, but without success. Realising that the remaining possessions lacked a viable water supply, and without Chinese acquiescence their continued retention by the United Kingdom would have become impractical, she relented and agreed to the Chinese proposal of "one country, two systems" under which Hong Kong's freedoms and way of life would be guaranteed for fifty years following the territory's return in 1997. The two countries signed a treaty known as the Sino-British Joint Declaration to that effect and Hong Kong became a Special Administrative Region of China with a Basic Law giving effect to those promises on 1 July 1997.

See Also

Copyright Details
License: Some content for this article is in the Public Domain in the United States because it is a work of the United States Federal Government under the terms of Title 17, Chapter 1, Section 105 of the U.S. Code
Source: File available from the United States Federal Government [1].
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