Updated October 18, 2019
Hong Kong: Recent Developments and U.S. Relations
The Hong Kong Special Administrative Region (HKSAR,
To fulfill a Joint Declaration provision, China’s National
or Hong Kong) is a city located off the southern coast of
People’s Congress passed the “Basic Law of the Hong
China’s Guangdong Province. More than 90% of Hong
Kong Special Administrative Region (HKSAR) of the
Kong’s population is ethnically Chinese. The first language
People’s Republic of China” (Basic Law) on April 4, 1990.
of the vast majority is Cantonese, a variety of Chinese
The Basic Law established an executive-led government,
different from what is spoken in most of China. In part
headed by a Chief Executive, a local legislature, the
because of its different language and long history as a
Legislative Council (Legco), and an independent judiciary,
British colony (1842 to 1997), the people of Hong Kong
including a separate Court of Final Appeal. The Basic Law
(“Hong Kongers”) have a cultural and social identity
also states that the “ultimate aim” is to select the Chief
distinct from that of Mainland China (“Mainlanders”). This
Executive and all Legco members by “universal suffrage.”
includes a unique legacy in Asia of laissez-faire economics
and the rule of law, part of their common law legacy from
Hong Kong at a Glance
the British, along with the passionate support for universal
human rights.
Population (2018): 7.49 mil ion (including 85,000 U.S.
citizens)
After two decades under Chinese sovereignty, many Hong
Area: 1,082 square kilometers (418 square miles)
Kongers see this legacy being eroded by China’s
Per Capita GDP in 2018: HK$ 381,544 (US$48,916)
interference in the governance of Hong Kong. For critics of
Chinese rule, the erosion of Hong Kong’s political and
Life Expectancy (at birth, 2018): men–82.3 years;
economic autonomy, civil liberties, and rule of law threaten
women–87.7 years
to undermine the city’s economic prosperity and distinctive
Leadership: Chief Executive Carrie Lam Cheng Yuet-ngor
culture. Supporters of China’s policies in Hong Kong view
Source: Hong Kong Census and Statistics Department
recent developments as forging closer ties with mainland
China and generally benefiting the people of Hong Kong.
The Basic Law also states that the HKSAR “shall enjoy a
The differing views of China’s relationship with Hong
high degree of autonomy and come directly under the
Kong has led to a polarization of political views among
Central People’s Government,” and that “[t]he socialist
Hong Kong residents. In June 2019, discontent over
system and policies shall not be practised in the Hong Kong
proposed amendments to local extradition ordinances gave
Special Administrative Region, and the previous capitalist
rise to widespread protests that have led to sometimes
system and way of life shall remain unchanged for 50
violent confrontations between the Hong Kong Police Force
years” (through June 30, 2047). This arrangement is
(HKPF) and some demonstrators (see CRS In Focus
frequently referred to as “one country, two systems.”
IF11295, Hong Kong’s Protests of 2019).
U.S. Relations with Hong Kong
Hong Kong’s Autonomous Status
U.S. relations with Hong Kong are governed by the United
During its time as a British colony, Hong Kong grew from a
States-Hong Kong Policy Act of 1992 (P.L. 102-383),
small fishing community into one of the world’s largest
which commits the United States to treating the HKSAR as
international trade and financial centers. Much of that
separate from the rest of China in a variety of political,
growth is attributed to the laissez-faire economic policies
economic, trade, and other areas so long as the HKSAR
adopted by the colony’s relatively autonomous governors,
remains “sufficiently autonomous.” The act also states,
and the entrepreneurial skills of the local Hong Kong
“Support for democratization is a fundamental principle of
business community.
United States foreign policy. As such, it naturally applies to
United States policy toward Hong Kong. This will remain
On July 1, 1997, sovereignty over Hong Kong reverted to
equally true after June 30, 1997.”
China under the provisions of an international treaty—
known as the “Joint Declaration”—negotiated between
U.S. merchandise trade statistics list Hong Kong as the 21st
China and the United Kingdom in 1984. The residents of
largest trading partner for the United States in 2018, with
Hong Kong were afforded no direct role in the negotiations
total trade of $43.8 billion. The U.S. trade surplus with
of the Joint Declaration that would determine their future.
Hong Kong—$31.1 billion—was its largest in 2018.
Under the terms of the Joint Declaration, Hong Kong is to
According to Hong Kong’s Census and Statistics
“enjoy a high degree of autonomy, except in foreign and
Department, 290 U.S. companies had their regional
defence affairs which are the responsibilities of the Central
headquarters and another 434 had regional offices in Hong
People’s Government [the PRC government].”
Kong in 2018.
The U.S. Consulate General Hong Kong & Macau is the
official U.S. representative office in Hong Kong. The Hong
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Hong Kong: Recent Developments and U.S. Relations
Kong Economic and Trade Office (HKETO) is the
August 2018, China’s Ministry of Foreign Affairs asked
HKSAR’s official representative office in the United States.
Hong Kong’s Foreign Correspondents Club to cancel a
speech by HKNP leader Andy Chan Ho-tin.
Recent Developments in Hong Kong
Various actions taken by the China’s central government
Violating of Hong Kong Security Authority
and the HKSAR government during Hong Kong’s first 20
According to some observers, Chinese security officials
years under Chinese sovereignty have raised doubts about
have allegedly operated in Hong Kong in violation of the
China’s commitment to its apparent obligations under the
Basic Law on at least two recent occasions. The first
Joint Declaration and its compliance with the provisions of
incident was the unexplained disappearance of publisher
the Basic Law. China’s Liaison Office in Hong Kong is
Lee Bo from Hong Kong in December 2015 and his equally
reportedly a key actor in China’s alleged efforts to
unexplained reappearance in China’s Guangdong Province
undermine Hong Kong’s autonomy and suppress voices of
in January 2016. The second occurred in January 2017,
political opposition.
when Xiao Jianhua, a Mainland-born billionaire, was
removed from his apartment in Hong Kong and taken into
2019 Protests
Mainland China, apparently by Chinese security personnel.
Every week since June 9, 2019, tens of thousands of Hong
Kong residents, or “Hong Kongers,” have held marches and
Challenging Hong Kong’s Independent Judiciary
rallies to protest the perceived erosion of their city’s “high
In 2014, China’s State Council released a “white paper” on
degree of autonomy” and Beijing’s efforts to “Mainlandize”
“The Practice of the ‘One Country, Two Systems’ Policy”
Hong Kong’s culture, economy, and society. The Hong
in Hong Kong. The document asserts that all HKSAR
Kong government, led by Chief Executive Carrie Lam
officials, including judges, must be “loyal to the country”
Cheng Yuet-ngor, and China’s central government have
and safeguard the nation’s sovereignty. Questions have also
characterized the protests as “riots” and “terrorism.” The
been raised about the selection and the timing of cases
Hong Kong Police Force has employed increasingly
prosecuted by the Hong Kong Secretary of Justice, noting a
aggressive tactics to stop the protests, resulting in
pattern of filing charges against and seeking harsher
sometimes violent confrontations and allegations that its
penalties for pro-democracy protesters while dismissing
officers are violating international standards for responding
cases of alleged abuse by Hong Kong Police officers.
to civil demonstrations.
Resisting Democratic Reforms
Suppressing of Political Expression
In 2014, China’s National People’s Congress Standing
Several candidates and political parties advocating more
Committee issued a decision that would only allow
democracy or more autonomy for Hong Kong have been
universal suffrage in the Chief Executive election if
barred from running in Legco elections or been removed
candidates were limited in number and effectively approved
from office following their election (see CRS In Focus
by China. The decision sparked the Umbrella Movement—
IF10500, Hong Kong’s Legislative Council (Legco)). In
a spontaneous, student-led protest—that occupied several of
September 2018, the HKSAR government banned the Hong
central Hong Kong’s streets for three months. On June 18,
Kong National Party (HKNP), which advocates for Hong
2015, the Legco voted down a HKSAR government
Kong independence, claiming it poses a threat to “national
proposal to implement the decision because the nomination
security or public safety, public order, the protection of
process was seen as too restrictive. On March 26, 2017, the
public health or morals or the protection of the rights and
1,200 Election Committee selected the pro-establishing
freedoms of others.”
Carrie Lam Cheng Yuet-ngor as Chief Executive.
Restricting Press Freedom
Congressional Activity
Hong Kong continues to have an active and varied press,
The House has passed the Hong Kong Human Rights and
but the Hong Kong Journalists Association (HKJA) stated
Democracy Act of 2019 (H.R. 3289) which would require
in its annual report for 2018 that China’s increased focus on
the Secretary of State to annually certify to Congress that
national security has “cast a shadow” over Hong Kong’s
Hong Kong is “sufficiently autonomous to justify special
press freedom and has led to an increase in self-censorship.
treatment by the United States for bilateral agreements and
China’s Liaison Office in Hong Kong has reportedly
programs.” It would also prohibit the denial of a visa to
applied pressure on Hong Kong and foreign businesses to
enter the United States solely “on the basis of politically-
stop advertising in “pro-democracy” newspapers. In
motivated arrest, detention, or other adverse government
addition, individuals with alleged ties to Chinese security
action.” The act would prohibit the issuance of a visa to
forces have physically attacked Hong Kong editors and
enter the United States and freeze the assets of any person
reporters in China and in Hong Kong. In October 2018, the
“undermining fundamental freedoms and autonomy in
HKSAR government refused to renew the work visa for a
Hong Kong.” The Senate Foreign Relations Committee has
foreign journalist for the Financial Times for undisclosed
approved S. 1838, which differs from the House-passed act.
reasons. Some observers tie the visa denial to the journalist
hosting a public event featuring HKNP leader Chan Ho-tin.
In addition, the House has passed the Placing Restrictions
on Teargas Exports and Crowd Control Technology to
Limiting Freedom of Speech
Hong Kong Act (PROTECT HK Act, H.R. 4270) which
Chinese and HKSAR officials reportedly disapprove of and
would prohibit the export of riot control equipment,
interfere with discussions of Hong Kong independence or
munitions, and services to the Hong Kong Police Force and
self-determination, particularly among or with students. In
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Hong Kong: Recent Developments and U.S. Relations
Hong Kong Auxiliary Police Force. A similar bill has not
Michael F. Martin, Specialist in Asian Affairs
been introduced in the Senate.
IF10956


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https://crsreports.congress.gov | IF10956 · VERSION 4 · UPDATED

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