HongKong History

History
Archeological findings date the first human settlements in the area back to more than 30,000 years. It was first incorportated into China during the Qin Dynasty and largely remained until Chinese rule until 1841 during the Qing Dynasty, with a brief interruption at the end of the Qin Dynasty, when a Qin official established the kingdom of Nam Yuet, which later fell to the Han Dynasty.

In January 1841, as a result of the defeat of the Qing Dynasty of China in the First Opium War, Hong Kong became a British colony, under the Convention of Chuen Pi. After the defeat of China in the Second Opium War, the Kowloon Peninsula was ceded to Britain in 1860. In 1898, the New Territories — a rural area north of Boundary Street in Kowloon district — were leased to Britain for 99 years. Hong Kong fell into Japanese hands during the Second World War but returned to British control after the end of the war.

After the communists took control of mainland China in 1949, many of the Chinese businessmen fled to Hong Kong due to persecution by the communist government. Unlike the restrictive policies imposed by the communists in mainland China, the British government took a rather "hands off" approach in Hong Kong, as proposed by former financial scretary John James Cowperthwaite, which led to a high degree of economic freedom. Under such conditions, businesses flourished in Hong Kong and its economy grew rapidly, earning it a place as one of the East Asian Tigers. In 1990, Hong Kong's GDP per capita surpassed that of Britain, the first time a colony's GDP per capita surpassed that of its colonial master. Hong Kong is now the world's fourth largest financial centre after New York, London and Tokyo.

In 1984, the Chinese and British Governments signed the Joint Declaration on the Question of Hong Kong, giving Hong Kong back to China on 1 July 1997. Hong Kong became a Special Administrative Region (SAR) of the Peoples Republic of China. Under the slogan "One Country, Two Systems", Hong Kong remains a capitalist economy without various restrictions that apply in mainland China such as news censorship and foreign exchange controls.

In accordance with the Joint Declaration, the Basic Law was enacted to serve in effect as a mini-constitution for the Hong Kong SAR. In theory, Hong Kong enjoys "a high degree of autonomy" in most matters except foreign and defence affairs. In practice, it is more complex than that: on the one hand, Beijing exerts much influence, on the other, there are groups pushing for a more democratic regime and universal suffrage.

In many respects, little has changed since the Handover to China in 1997. A Chief Executive, chosen by an elite electoral college, has replaced the Colonial Governor – Beijing’s man has replaced London’s man. What was once a British colony now looks like a Chinese colony. Although “part of China”, Hong Kong operates like a tiny country with its own currency, laws, international dialling code, police force, border controls and the like. It is also a member of international organisations that are not restricted to sovereign states such as the WTO, APEC and the IOC.