Updated January 6, 2020
Hong Kong: Recent Developments and U.S. Relations
The Hong Kong Special Administrative Region (HKSAR,
defence affairs which are the responsibilities of the Central
or Hong Kong) is a city located off the southern coast of
People’s Government [the PRC government].”
Guangdong Province, People’s Republic of China (PRC or
China). More than 90% of Hong Kong’s population is
To fulfill a Joint Declaration provision, China’s National
ethnically Chinese. The first language of the vast majority
People’s Congress passed the “Basic Law of the Hong
is Cantonese, a variety of Chinese different from what is
Kong Special Administrative Region (HKSAR) of the
spoken in most of China. In part because of its different
People’s Republic of China” (Basic Law) on April 4, 1990.
language and long history as a British colony (1842 to
The Basic Law established an executive-led government,
1997), the people of Hong Kong (“Hong Kongers”) have a
headed by a Chief Executive, a local legislature, the
cultural and social identity distinct from that of Mainland
Legislative Council (Legco), and an independent judiciary,
China (“Mainlanders”). This includes a legacy of laissez-
including a separate Court of Final Appeal. The Basic Law
faire economics and a common law legal system adopted
also states that the “ultimate aim” is to select the Chief
from the British legal system, along with a passionate
Executive and all Legco members by “universal suffrage.”
support for universal human rights.
Hong Kong at a Glance
After more than two decades under Chinese sovereignty,
many Hong Kongers see this legacy being eroded by
Population (2018): 7.49 mil ion (including 85,000 U.S.
China’s interference in the governance of Hong Kong. For
citizens)
critics of Chinese rule, the erosion of Hong Kong’s political
Area: 1,082 square kilometers (418 square miles)
and economic autonomy, civil liberties, and rule of law
Per Capita GDP (2018): HK$381,544 (US$48,916)
threaten to undermine the city’s economic prosperity and
distinctive culture. Supporters of China’s policies in Hong
Life Expectancy (at birth, 2018): Men–82.3 years;
Kong view recent developments as forging closer ties with
Women–87.7 years
mainland China and generally benefiting the people of
Leadership: Chief Executive Carrie Lam Cheng Yuet-ngor
Hong Kong. The differing views of China’s relationship
Source: Hong Kong Census and Statistics Department
with Hong Kong has led to a polarization of political views
among Hong Kong residents.
The Basic Law also states that the HKSAR “shall enjoy a
high degree of autonomy and come directly under the
In June 2019, discontent over proposed amendments to
Central People’s Government,” and that “[t]he socialist
local extradition ordinances gave rise to widespread
system and policies shall not be practised in the Hong Kong
protests that have led to sometimes violent confrontations
Special Administrative Region, and the previous capitalist
between the Hong Kong Police Force (HKPF) and some
system and way of life shall remain unchanged for 50
demonstrators (see CRS In Focus IF11295, Hong Kong’s
years” (through June 30, 2047). This arrangement is
Protests of 2019). Demonstrations have been held every
frequently referred to as “one country, two systems.”
week since June 2019, and have continued into 2020.
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 (USHKPA; P.L. 102-
small fishing community into one of the world’s largest
383), which commits the United States to treating the
international trade and financial centers. Much of that
HKSAR as separate from the rest of China in a variety of
growth is attributed to the laissez-faire economic policies
political, economic, trade, and other areas so long as the
adopted by the colony’s relatively autonomous governors,
HKSAR remains “sufficiently autonomous.” The act also
and the entrepreneurial skills of the local Hong Kong
states, “Support for democratization is a fundamental
business community.
principle of United States foreign policy. As such, it
naturally applies to United States policy toward Hong
On July 1, 1997, sovereignty over Hong Kong reverted to
Kong. This will remain equally true after June 30, 1997.”
China under the provisions of an international treaty—
known as the “Joint Declaration”—negotiated between
In 2019, Congress passed three new laws pertaining to U.S.
China and the United Kingdom in 1984. The residents of
policy toward Hong Kong. The Hong Kong Human Rights
Hong Kong were afforded no direct role in the negotiations
and Democracy Act of 2019 (HKHRDA; P.L. 116-76)
of the Joint Declaration that would determine their future.
amends the USHKPA to require the Secretary of State
Under the terms of the Joint Declaration, Hong Kong is to
provide an annual certification to Congress that Hong Kong
“enjoy a high degree of autonomy, except in foreign and
remains sufficiently autonomous to warrant separate
treatment from China, and to protect the ability of Hong
Kong protesters to obtain U.S. visas. The HKHRDA also
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Hong Kong: Recent Developments and U.S. Relations
requires the President impose sanctions on foreign persons
China’s Liaison Office in Hong Kong has reportedly
“undermining fundamental freedoms and autonomy in
applied pressure on Hong Kong and foreign businesses to
Hong Kong,” and safeguard U.S. citizens and others from
stop advertising in “pro-democracy” newspapers. In
rendition to China. P.L. 116-77 prohibits the sale of certain
addition, individuals with alleged ties to Chinese security
types of U.S. riot control equipment to the HKPF for one
forces have physically attacked Hong Kong editors and
year. The Further Consolidated Appropriations Act, 2020
reporters in China and in Hong Kong.
(P.L. 116-94) designates “not less than $1,500,000” for
democracy programs for Hong Kong, and requires the
Limits on Freedom of Speech
Secretary of State provide Congress an assessment of PRC
Chinese and HKSAR officials reportedly disapprove of and
and HKSAR government efforts to “prevent free assembly
interfere with discussions of Hong Kong independence or
and communications by the people of Hong Kong.”
self-determination, particularly at Hong Kong’s
universities. In August 2018, China’s Ministry of Foreign
U.S. merchandise trade statistics list Hong Kong as the 21st
Affairs asked Hong Kong’s Foreign Correspondents Club
largest trading partner for the United States in 2018, with
to cancel a speech by HKNP leader Andy Chan Ho-tin, a
total trade of $43.8 billion. The U.S. trade surplus with
prominent independence advocate.
Hong Kong—$31.1 billion—was its largest in 2018.
According to Hong Kong’s Census and Statistics
Violations of Hong Kong’s Autonomy
Department, 290 U.S. companies had their regional
According to some observers, Chinese security officials
headquarters and another 434 had regional offices in Hong
have operated in Hong Kong in violation of the Basic Law
Kong in 2018.
on at least two recent occasions. The first incident was the
unexplained disappearance of publisher Lee Bo from Hong
Recent Developments in Hong Kong
Kong in December 2015 and his equally unexplained
reappearance in China’s Guangdong Province in January
Anti-Government Protests
2016. The second occurred in January 2017, when Xiao
Every week since June 9, 2019, tens of thousands of Hong
Jianhua, a Mainland-born billionaire, was removed from his
Kong residents have demonstrated against the perceived
apartment in Hong Kong and taken into Mainland China,
erosion of their city’s “high degree of autonomy” and
apparently by Chinese security personnel.
alleged misconduct by the HKPF. The Hong Kong
government, led by Chief Executive Carrie Lam Cheng
Challenges to Hong Kong’s Independent Judiciary
Yuet-ngor, and China’s central government have
In 2014, China’s State Council released a “white paper” on
characterized the protests as “riots.” The HKPF has
“The Practice of the ‘One Country, Two Systems’ Policy”
employed increasingly aggressive tactics to stop the
in Hong Kong. The document asserts that all HKSAR
protests, resulting in sometimes violent confrontations and
officials, including judges, must be “loyal to the country”
allegations that its officers are violating international
and safeguard the nation’s sovereignty. Questions have also
standards for responding to civil demonstrations.
been raised about the selection and the timing of cases
prosecuted by the Hong Kong Secretary of Justice, noting a
District Council Elections
pattern of filing charges against and seeking harsher
On November 24, 2019, Hong Kong held elections for its
penalties for pro-democracy protesters while dismissing
18 District Councils. In a record turnout in which 3 million
cases of alleged abuse by HKPF officers.
people (71% of eligible voters) voted, pro-protest
candidates won nearly 390 of the 452 contested seats, and
Resistance to Democratic Reforms
took control of 17 of the 18 District Councils in which pro-
In 2014, China’s National People’s Congress Standing
government members previously had been the majority.
Committee issued a decision that would allow universal
suffrage in the Chief Executive election if candidates were
Suppression of Political Expression
limited in number and effectively approved by China. The
Since 2017, several candidates and political parties
decision sparked the Umbrella Movement—a spontaneous,
advocating more democracy or more autonomy for Hong
student-led protest—that occupied several of central Hong
Kong have been barred from running in Legislative Council
Kong’s streets for three months. On June 18, 2015, the
(Legco) elections or been removed from office following
Legco voted down a HKSAR government proposal to
their election (see CRS In Focus IF10500, Hong Kong’s
implement the decision because the nomination process was
Legislative Council (Legco)). In September 2018, the
seen as too restrictive. On March 26, 2017, the 1,200-
HKSAR government banned the Hong Kong National Party
member Election Committee selected the pro-establishment
(HKNP), which advocates for Hong Kong independence.
Carrie Lam Cheng Yuet-ngor as Chief Executive.
On December 17, 2019, Hong Kong’s High Court
disqualified two pro-democracy Legco members, Au Nok-
Congressional Activity
hin and Gary Fan Kwok-wai, who had won seats previously
The 116th Congress passed three laws pertaining to Hong
held by disqualified pro-democracy Legco members.
Kong in 2019. Another bill still pending, the Hong Kong Be
Water Act (S. 2758), would require the President impose
Restrictions on Press Freedom
Global Magnitsky sanctions (visa ban and financial
The Hong Kong Journalists Association (HKJA) stated in
sanctions) on PRC or HKSAR government officials who
its annual report for 2018 that China’s increased focus on
have “knowingly suppressed or facilitated the suppression
national security has “cast a shadow” over Hong Kong’s
of the freedoms of speech, association, assembly,
press freedom and has led to an increase in self-censorship.
procession, or demonstration of the people of Hong Kong.”
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Hong Kong: Recent Developments and U.S. Relations

IF10956
Michael F. Martin, Specialist in Asian Affairs


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https://crsreports.congress.gov | IF10956 · VERSION 5 · UPDATED

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