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Congressional Research Service
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Updated October 18, 2019
Hong Kong: Recent Developments and U.S. Relations
The Hong Kong Special Administrative Region (HKSAR,
or Hong Kong) is a city located off the southern coast of
China's Guangdong Province. More than 90% of Hong
Kong's population is ethnically Chinese. The first language
of the vast majority is Cantonese, a variety of Chinese
different from what is spoken in most of China. In part
because of its different language and long history as a
British colony (1842 to 1997), the people of Hong Kong
(Hong Kongers) have a cultural and social identity
distinct from that of Mainland China (Mainlanders). This
includes a unique legacy in Asia of laissez-faire economics
and the rule of law, part of their common law legacy from
the British, along with the passionate support for universal
human rights.
After two decades under Chinese sovereignty, many Hong
Kongers see this legacy being eroded by China's
interference in the governance of Hong Kong. For critics of
Chinese rule, the erosion of Hong Kong's political and
economic autonomy, civil liberties, and rule of law threaten
to undermine the city's economic prosperity and distinctive
culture. Supporters of China's policies in Hong Kong view
recent developments as forging closer ties with mainland
China and generally benefiting the people of Hong Kong.
The differing views of China's relationship with Hong
Kong has led to a polarization of political views among
Hong Kong residents. In June 2019, discontent over
proposed amendments to local extradition ordinances gave
rise to widespread protests that have led to sometimes
violent confrontations between the Hong Kong Police Force
(HKPF) and some demonstrators (see CRS In Focus
IF1 1295, Hong Kong's Protests of 2019).
Hong Kong's Autonomous Status
During its time as a British colony, Hong Kong grew from a
small fishing community into one of the world's largest
international trade and financial centers. Much of that
growth is attributed to the laissez-faire economic policies
adopted by the colony's relatively autonomous governors,
and the entrepreneurial skills of the local Hong Kong
business community.
On July 1, 1997, sovereignty over Hong Kong reverted to
China under the provisions of an international treaty-
known as the Joint Declaration-negotiated between
China and the United Kingdom in 1984. The residents of
Hong Kong were afforded no direct role in the negotiations
of the Joint Declaration that would determine their future.
Under the terms of the Joint Declaration, Hong Kong is to
enjoy a high degree of autonomy, except in foreign and
defence affairs which are the responsibilities of the Central
People's Government [the PRC government].
To fulfill a Joint Declaration provision, China's National
People's Congress passed the Basic Law of the Hong
Kong Special Administrative Region (HKSAR) of the
People's Republic of China (Basic Law) on April 4, 1990.
The Basic Law established an executive-led government,
headed by a Chief Executive, a local legislature, the
Legislative Council (Legco), and an independent judiciary,
including a separate Court of Final Appeal. The Basic Law
also states that the ultimate aim is to select the Chief
Executive and all Legco members by universal suffrage.
Hong Kong at a Glance
Population (20 18): 7.49 million (including 85,000 U.S.
citizens)
Area: 1,082 square kilometers (418 square miles)
Per Capita GDP in 2018: HK$ 381,544 (US$48,916)
Life Expectancy (at birth, 20 18): mien-82.3 years;
womien-87.7 years
Leadership: Chief Executive Carrie Lam Cheng Yuet-ngor
Source: Hong Kong Census and Statistics Department
The Basic Law also states that the HKSAR shall enjoy a
high degree of autonomy and come directly under the
Central People's Government, and that [t]he socialist
system and policies shall not be practised in the Hong Kong
Special Administrative Region, and the previous capitalist
system and way of life shall remain unchanged for 50
years (through June 30, 2047). This arrangement is
frequently referred to as one country, two systems.
U.S. Relations with Hong Kong
U.S. relations with Hong Kong are governed by the United
States-Hong Kong Policy Act of 1992 (P.L. 102-383),
which commits the United States to treating the HKSAR as
separate from the rest of China in a variety of political,
economic, trade, and other areas so long as the HKSAR
remains sufficiently autonomous. The act also states,
Support for democratization is a fundamental principle of
United States foreign policy. As such, it naturally applies to
United States policy toward Hong Kong. This will remain
equally true after June 30, 1997.
U.S. merchandise trade statistics list Hong Kong as the 21
largest trading partner for the United States in 2018, with
total trade of $43.8 billion. The U.S. trade surplus with
Hong Kong-$31.1 billion-was its largest in 2018.
According to Hong Kong's Census and Statistics
Department, 290 U.S. companies had their regional
headquarters and another 434 had regional offices in Hong
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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