China Primer: Hong Kong

China Primer: Hong Kong

Updated October 12, 2023
China Primer: Hong Kong
Hong Kong is a Special Administrative Region of the
People’s Republic of China
Hong Kong at a Glance
(PRC, or China). The United
Kingdom (UK) established Hong Kong as colony in 1841,
Population (2022): 7.4 mil ion
and administered it until 1997 when the UK transferred it to
Area: 1,082 square kilometers (418 square miles)
the PRC. The PRC agreed that after the handover, the Hong
Currency: Hong Kong Dol ar (HKD)
Kong Special Administrative Region (Hong Kong, or
HKSAR) would retain “a high degree of autonomy, except
Per Capita GDP (2020): US$65,922 (Purchasing Power
in foreign and defense affairs.”
Parity (PPP))
Leadership: Chief Executive John Lee (Lee Ka-chiu)
After the handover, Hong Kong’s legal and local
The Chief Executive is appointed by and accountable to the PRC
government systems remained distinct from those of the
Central Government
PRC, and the city continued to be one of the world’s largest
Legislature: Unicameral Legislative Council (LegCo) with 90
international trade and financial centers as well as a nexus
members elected by the Hong Kong Election Committee (40)
for exchanges of all kinds between China and the world.
and fixed geographical (20) and functional (30) constituencies
Following large-scale protests in 2019 opposing a bill that
Four Key Industries (by % of 2021 GDP value added):
would have allowed the extradition of fugitives to mainland
Financial Services (21.3%), Trading and Logistics (23.7%),
China, China’s legislature, with the stated purpose of
Tourism (0.1%), and Professional Services (11.4%)
restoring order, imposed a national security law (NSL) on
the HKSAR on June 30, 2020. The NSL criminalizes the
Source: Hong Kong Census and Statistics Department,
organization and perpetration of “terrorist activities,”
Economist Intelligence Unit (EIU)
“secession,” “subversion,” and “collusion” with foreign
these institutions, Hong Kong became a global trade and
entities “to endanger national security.” Members of
financial center, and a window for trade, investment, and
Congress and the executive branch have expressed concern
finance with the PRC. Under the terms of the Joint
over the law, its implementation, and PRC and HKSAR
authorities’
Declaration, Hong Kong maintains separate membership in
broader crackdown on civil society, and have
more than 40 international organizations, including the
called upon China to abide by the commitments it made
World Trade Organization (WTO), the World Bank, and the
ahead of the handover in 1997 (see below).
International Monetary Fund (IMF). Hundreds of U.S.
History of the HKSAR
companies maintain operations in Hong Kong, and the
territory still hosts the Asia headquarters of many major
In 1984, the UK and the PRC government signed an
multinational corporations.
international treaty, the Sino-British Joint Declaration on
the Question of Hong Kong or “Joint Declaration.” Under
Hong Kong’s Autonomy and Democratic
this agreement, the UK agreed to transfer sovereignty over
Institutions
Hong Kong to the PRC on July 1, 1997. The PRC
Since 2020, China’s Central Government has adopted
government, in turn, committed to ensure that Hong Kong
measures that appear to be eroding Hong Kong’s autonomy.
would “enjoy a high degree of autonomy” and “will be
Some of the measures seem aimed at further embedding the
vested with executive, legislative and independent judicial
power, including that of final adjudication.” The PRC also
influence of the Central Government and Communist Party
promised the “[r]ights and freedoms, including those of the
of China (CPC) within the HKSAR. The HKSAR’s
Committee for Safeguarding National Security (CSNS),
person, of speech, of the press, of assembly, of association,
established under the NSL, assumed “primary responsibility
of travel, of movement, of correspondence, of strike, of
for safeguarding national security.” The CSNS is chaired by
choice of occupation, of academic research and of religious
Hong Kong’s
belief will be ensured by law.” The Joint Declaration
Chief Executive but operates “under the
supervision of and [is] accountable to the [Central
required the PRC to pass a Basic Law for the HKSAR
Government].” In March 2023, the CPC created a Hong
incorporating these commitments, and the commitments
were to “remain unchanged for 50 years.” China’s National
Kong and Macao Work Office “as a working body of the
People’s Congress (NPC) passed the “Basic Law of the
CPC Central Committee.” Some analysts have interpreted
the move as a way for the Party to “centralize” its
Hong Kong Special Administrative Region (HKSAR) of
the People’s Republic of China
leadership in Hong Kong, in order to keep Hong Kong from
,” or “Basic Law,” on April
“becoming a weak link in national security.”
4, 1990.
PRC and HKSAR authorities also have adopted measures
Hong Kong is governed by an indirectly elected Chief
that could further erode the HKSAR’s democratic
Executive and Legislative Council (LegCo), and operates
institutions. In March 2021, for example, the NPC adopted
with a legal system based on British Common Law. With
a decision to amend certain provisions of the Basic Law,
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China Primer: Hong Kong
significantly reducing the role of direct elections in the
treatment of Hong Kong as separate from the PRC for trade
selection of the LegCo. These alterations, together with the
and political purposes. It also authorized the Secretaries of
HKSAR government’s disqualification, ouster, and
State and the Treasury to impose visa and economic
prosecution of members of opposition parties, have shifted
sanctions on HKSAR and PRC officials determined to be
LegCo’s composition toward candidates whose stated
responsible for the erosion of the HKSAR’s autonomy, the
positions are more aligned with the Central Government in
undermining of democracy, or the loss of the rights of Hong
Beijing. Some opposition members have chosen to abstain
Kong residents. In March 2021, the Biden Administration
from the political process following the changes. In May
indicated it would maintain the suspension of differential
2023, the HKSAR government unveiled a plan to reduce
treatment of HKSAR. As of September 2023, the United
the number of directly-elected district councilors, which
States had sanctioned 42 persons (including HKSAR Chief
advise the HKSAR government on district-level matters,
Executive John Lee) pursuant to E.O. 13936.
among other changes.
Hong Kong and the U.S. Congress
Civil Rights and Liberties
Since 2019, Congress has passed several laws addressing
Since 2020, the Central Government’s and HKSAR’s focus
developments in the HKSAR:
on national security has appeared to stifle the city’s lively
civic culture and erode Hong Kong residents’ civil rights
• the Hong Kong Autonomy Act of 2020 (HKAA, P.L.
and liberties:
116-149) authorized sanctions on foreign individuals
and entities contributing to the erosion of Hong Kong’s
Prosecutions. Four years after large-scale protests in
autonomy and on “foreign financial institutions that
response to the extradition bill, HKSAR authorities
conduct significant transactions” with persons
continue detaining and prosecuting people in connection
designated for sanctions under the act;
with those demonstrations. According to authorities, as of
October 2022, the HKSAR had arrested 10,279 people in
• the Hong Kong Human Rights and Democracy Act
connection to the protests. The HKSAR government is also
(HKHRDA, P.L. 116-76), among other things, requires
engaged in legal proceedings against a group of 47 pro-
the Department of State to certify in an annual report to
democracy figures (the “Hong Kong 47”) who, in July
Congress whether Hong Kong is sufficiently
2020, organized an unofficial primary for the subsequently
autonomous from China to justify its unique treatment
postponed 2020 LegCo election. Some of those charged
under U.S. law; and
face life in prison.
• P.L. 116-77, subsequently amended by Sec. 1252 of
Media Environment. The HKSAR government’s active
the William M. (Mac) Thornberry National Defense
enforcement of the NSL has prompted several media
Authorization Act (NDAA) for FY2021 (P.L. 116-283)
organizations to close or cease operations in Hong Kong. A
and Sec. 5589 of the James M. Inhofe National
number of outlets, including some critical of the Central
Defense Authorization Act (NDAA) for FY2023 (P.L.
Government such as Apple Daily and Stand News, have
117-263), prohibits the export of certain equipment and
been subject to investigation (including police raids) by
munitions to the Hong Kong Police Force.
authorities.
The HKSAR and PRC governments have condemned these
Restrictions on Assemblies. The HKSAR adopted
measures. The HKSAR government described the sanctions
stringent measures to counteract the spread of COVID-19.
as “blatant interference in the internal affairs of the PRC,
Although the HKSAR announced it was removing most
violating international law and basic norms governing
restrictions in December 2022, its restrictive approach to
international relations.” The PRC has imposed visa and
public assemblies has endured. HKSAR authorities have
other sanctions on U.S. officials.
cited health concerns among their reasons for prohibiting
multiple public assemblies, including the longstanding vigil
During the 118th Congress, Members have introduced 50
to commemorate the 1989 Tiananmen Square Protests.
pieces of legislation (including 31 bills) with Hong Kong-
related provisions. One provision under the NDAA for
U.S. Policy Toward Hong Kong
FY2024 (H.R. 2670 and S. 2226) would require presidential
U.S. relations with Hong Kong are governed by the United
certification to remove export restrictions of munitions
States-Hong Kong Policy Act of 1992 (USHKPA; P.L. 102-
items to the Hong Kong Police Force. The Hong Kong
383), which commits the United States to treating the
Economic and Trade Office (HKETO) Certification Act (S.
HKSAR as separate from the rest of China in a variety of
490) would require the president to remove the extension of
political, economic, trade, and other areas so long as the
certain privileges, exemptions, and immunities to the
HKSAR remains “sufficiently autonomous.” The act also
HKETO, the HKSAR’s representative office, in the United
states, “Support for democratization is a fundamental
States “if Hong Kong no longer enjoys a high degree of
principle of United States foreign policy.”
autonomy” from the PRC.
In 2020, in response to the NSL, then-President Trump
Ricardo Barrios, Analyst in Asian Affairs
issued an Executive Order on Hong Kong Normalization
Michael D. Sutherland, Analyst in International Trade and
(E.O. 13936). The executive order stated that the HKSAR
“is no longer sufficiently autonomous to justify differential
Finance
treatment in relation to the [PRC],” and suspended U.S.
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China Primer: Hong Kong

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