Updated November 26, 2018
Hong Kong: Recent Developments and U.S. Relations
The Hong Kong Special Administrative Region (HKSAR,
Kong Special Administrative Region (HKSAR) of the
or Hong Kong) is a city located off the southern coast of
People’s Republic of China” (Basic Law) on April 4, 1990.
China’s Guangdong Province. More than 90% of Hong
The Basic Law established an executive-led government,
Kong’s population is ethnically Chinese. The first language
headed by a Chief Executive, a local legislature, the
of the vast majority is Cantonese, a dialect of Chinese, and
Legislative Council (Legco), and an independent judiciary,
because of its long history as a British colony (1842 to
including a separate Court of Final Appeal. The Basic Law
1997), the people of Hong Kong (“Hong Kongers”) have a
also states that the “ultimate aim” is to select the Chief
cultural and social identity distinct from that of Mainland
Executive and all Legco members by “universal suffrage.”
China (“Mainlanders”).
Hong Kong at a Glance
Hong Kong has a unique legacy in Asia of laissez-faire
economics and the rule of law, part of their common law
Population: 7.45 million (including 85,000 U.S. citizens)
legacy from the British, along with the passionate support
Area: 1,082 square kilometers (418 square miles)
for universal human rights.
Per Capita GDP: HK$ 359,996 (US$46,153)
After two decades under Chinese sovereignty, many Hong
Life Expectancy (at birth): men–81.3 years; women–87.3
Kongers see this legacy being eroded by China’s
years
interference in the governance of Hong Kong. For critics of
Leadership: Chief Executive Carrie Lam Cheng Yuet-ngor
Chinese rule, the erosion of Hong Kong’s political and
Source: Hong Kong Census and Statistics Department
economic autonomy, civil liberties, and rule of law threaten
to undermine the city’s economic prosperity and distinctive
The Basic Law also states that the HKSAR “shall enjoy a
culture. Supporters of China’s policies in Hong Kong view
high degree of autonomy and come directly under the
recent developments as forging closer ties with mainland
Central People’s Government,” and that “[t]he socialist
China and generally benefiting the people of Hong Kong.
system and policies shall not be practised in the Hong Kong
The differing views of China’s relationship with Hong
Special Administrative Region, and the previous capitalist
Kong has led to a polarization of political views among
system and way of life shall remain unchanged for 50
Hong Kong residents. In addition, although the city’s
years” (through June 30, 2047). This arrangement is
economy is performing well, rising income and wealth
frequently referred to as “one country, two systems.”
disparities and dwindling job prospects for Hong Kong
youth have contributed to generational conflicts over the
U.S. Relations with Hong Kong
health of Hong Kong’s economy and society.
U.S. relations with Hong Kong are governed by the United
States-Hong Kong Policy Act of 1992 (P.L. 102-383),
Hong Kong’s Autonomous Status
which commits the United States to treating the HKSAR as
During its time as a British colony, Hong Kong grew from a
separate from the rest of China in a variety of political,
small fishing community into one of the world’s largest
economic, trade, and other areas so long as the HKSAR
international trade and financial centers. Much of that
remains “sufficiently autonomous.” The act also states,
growth is attributed to the laissez-faire economic policies
“Support for democratization is a fundamental principle of
adopted by the colony’s relatively autonomous governors,
United States foreign policy. As such, it naturally applies to
and the entrepreneurial skills of the local Hong Kong
United States policy toward Hong Kong. This will remain
business community.
equally true after June 30, 1997.”
On July 1, 1997, sovereignty over Hong Kong reverted to
U.S. merchandise trade statistics list Hong Kong as the 19th
China under the provisions of an international treaty—
largest trading partner for the United States in 2017, with
known as the “Joint Declaration”—negotiated between
total trade of $47.5 billion. The U.S. trade surplus with
China and the United Kingdom in 1984. The residents of
Hong Kong—$32.5 billion—was its largest in 2017.
Hong Kong were afforded no direct role in the negotiations
According to Hong Kong’s Census and Statistics
of the Joint Declaration that would determine their future.
Department, 290 U.S. companies had their regional
Under the terms of the Joint Declaration, Hong Kong is to
headquarters and another 434 had regional offices in Hong
“enjoy a high degree of autonomy, except in foreign and
Kong in 2018.
defence affairs which are the responsibilities of the Central
People’s Government [the PRC government].”
The U.S. Consulate General Hong Kong & Macau is the
official U.S. representative office in Hong Kong. The Hong
To fulfill a Joint Declaration provision, China’s National
Kong Economic and Trade Office (HKETO) is the
People’s Congress passed the “Basic Law of the Hong
HKSAR’s official representative office in the United States.
https://crsreports.congress.gov
Hong Kong: Recent Developments and U.S. Relations
Recent Developments in Hong Kong
Seasons Hotel in Hong Kong and taken into Mainland
Various actions taken by the China’s central government
China, apparently by Chinese security personnel.
and the HKSAR government during Hong Kong’s first 20
years under Chinese sovereignty have raised doubts about
Challenging Hong Kong’s Independent Judiciary
China’s commitment to its apparent obligations under the
In 2014, China’s State Council released a “white paper” on
Joint Declaration and its compliance with the provisions of
“The Practice of the ‘One Country, Two Systems’ Policy”
the Basic Law. China’s Liaison Office in Hong Kong is
in Hong Kong. The document asserts that all HKSAR
reportedly a key actor in China’s effort to undermine Hong
officials, including judges, must be “loyal to the country”
Kong’s autonomy and suppress the voice of political
and safeguard the nation’s sovereignty. Questions have also
opposition. It reportedly lobbied for the selection of Carrie
been raised about the selection and the timing of cases
Lam as Hong Kong’s Chief Executive, openly supported
prosecuted by the Hong Kong Secretary of Justice, noting a
and secretly lobbied for the election of “pro-Beijing”
pattern of filing charges against and seeking harsher
candidates in the 2016 Legco elections, and pressed for
penalties for pro-democracy protesters while dismissing
Legco approval of the “co-location arrangement” for the
cases of alleged abuse by Hong Kong Police officers.
new Hong Kong high speed rail terminal that grants China
jurisdiction over part of the station.
Resisting Democratic Reforms
In 2014, China’s National People’s Congress Standing
Suppressing of Political Expression
Committee issued a decision that would only allow
Several candidates and political parties advocating more
universal suffrage in the Chief Executive election if
democracy or more autonomy for Hong Kong have been
candidates were limited in number and effectively approved
barred from running in Legco elections or been removed
by China. The decision sparked the Umbrella Movement—
from office following their election (see CRS In Focus
a spontaneous, student-led protest—that occupied several of
IF10500, Hong Kong’s Legislative Council (Legco)). In
central Hong Kong’s streets for three months. On June 18,
September 2018, the HKSAR government banned the Hong
2015, the Legco voted down a HKSAR government
Kong National Party (HKNP), which advocates for Hong
proposal to implement the decision because the nomination
Kong independence, claiming it poses a threat to “national
process was seen as too restrictive. On March 26, 2017, the
security or public safety, public order, the protection of
1,200 Election Committee selected the pro-establishing
public health or morals or the protection of the rights and
Carrie Lam Cheng Yuet-ngor as Chief Executive.
freedoms of others.”
Congressional Activity
Restricting Press Freedom
Both Houses of Congress have shown a degree of concern
Hong Kong continues to have an active and varied press,
about developments in Hong Kong. On November 1, 2017,
but China’s Liaison Office in Hong Kong has reportedly
the House of Representatives passed H.Res. 422, urging the
applied pressure on Hong Kong and foreign businesses to
adherence to the “one country, two systems” policy
stop advertising in “pro-democracy” newspapers. In
established by the Joint Declaration and the Basic Law,
addition, individuals with alleged ties to Chinese security
pointing specifically to Hong Kong’s autonomy; its
forces have physically attacked Hong Kong editors and
independent executive, legislative and independent judicial
reporters in China and in Hong Kong. In October 2018, the
power; and the “fundamental rights of Hong Kong residents
HKSAR refused to renew the work visa for a foreign
guaranteed by Chapter III of the Basic Law.”
journalist for the Financial Times for undisclosed reasons.
The Hong Kong Journalists Association (HKJA) stated in
The pending Hong Kong Human Rights and Democracy
its annual report for 2018 that China’s increased focus on
Act of 2017 (H.R. 3856 and S. 417) would require the
national security has “cast a shadow” over Hong Kong’s
Secretary of State to provide an annual certification to
press freedom and has led to an increase in self-censorship.
Congress that Hong Kong is “sufficiently autonomous” to
justify separate treatment from China. The bills also would
Limiting Freedom of Speech
reinstate an annual report to Congress on the status of Hong
Chinese and HKSAR officials reportedly disapprove of and
Kong. S. 417 would impose visa and financial restrictions
interfere with discussions of Hong Kong independence or
on persons determined to be responsible for certain human
self-determination, particularly among or with students. In
rights violations in Hong Kong, and preclude the denial of
August 2018, China’s Ministry of Foreign Affairs asked
U.S. entry visas to applicants who were arrested or detained
Hong Kong’s Foreign Correspondents Club to cancel a
for their participation in non-violent protests in Hong Kong
speech by HKNP leader Andy Chan Ho-tin.
in 2014.
Violating of Hong Kong Security Authority
H.R. 3856 would impose visa and financial restrictions on
According to some observers, Chinese security officials
persons responsible for “the surveillance, abduction,
have allegedly operated in Hong Kong in violation of the
detention, abuse, or forced confession” of Gui Minhai, Lee
Basic Law on at least two recent occasions. The first
Bo, and others related to their publishing company, as well
incident was the unexplained disappearance of publisher
as “any other journalist, publisher, writer, bookseller, or
Lee Bo from a warehouse in Hong Kong in December 2015
other resident in Hong Kong” connected with impinging on
and his equally unexplained reappearance in China’s
what free speech rights.
Guangdong Province in January 2016. The second occurred
in January 2017, when Xiao Jianhua, a Mainland-born
Michael F. Martin, Specialist in Asian Affairs
billionaire, was removed from his apartment in the Four
IF10956
https://crsreports.congress.gov
Hong Kong: Recent Developments and U.S. Relations
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https://crsreports.congress.gov | IF10956 · VERSION 3 · UPDATED