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![handle is hein.crs/govefne0001 and id is 1 raw text is: Congressional Research Service
Informing the legislative debate since 1914
March 31, 2022
China Primer: Hong Kong
The Hong Kong Special Administrative Region (HKSAR,
or Hong Kong) is a semi-autonomous city located off the
southern coast of Guangdong Province, People's Republic
of China (PRC or China). The city was established as a
British colony in 1841, and administered by the British
government until 1997, when it was formally returned to
PRC jurisdiction. 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 the Standard Mandarin recognized as the national
language by PRC law). English is also widely spoken and
used in commercial and legal settings.
History of the HKSAR
In 1984, the United Kingdom and the PRC government
signed an international treaty known as the Sino-British
Joint Declaration on the Question of Hong Kong, or Joint
Declaration. Under the agreement, the UK agreed to
transfer sovereignty over Hong Kong to the PRC on July 1,
1997. The PRC government, in turn, committed to ensure
that Hong Kong would continue to enjoy a high degree of
autonomy, except in foreign and defence affairs, and will
be vested with executive, legislative and independent
judicial power, including that of final adjudication. The
PRC also promised the [r]ights and freedoms, including
those of the person, of speech, of the press, of assembly, of
association, of travel, of movement, of correspondence, of
strike, of choice of occupation, of academic research and of
religious belief will be ensured by law. The Joint
Declaration required the PRC to pass a Basic Law for the
HKSAR incorporating these commitments, and those
commitments were to remain unchanged for 50 years.
China's National People's Congress (NPC) 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.
Hong Kong at a Glance
Population (2020): 7.5 million
Area: 1,082 square kilometers (418 square miles)
Currency: Hong Kong Dollar (HKD)
Per Capita GDP (2020): US$59,092 (HK$462,020)
Leadership: Chief Executive Carrie Lam (Cheng Yuet-ngor)
Legislature: Unicameral Legislative Council (LegCo) with 90
members elected by fixed geographical and functional
constituencies
Key Industries (by % of 2020 GDP value added):
Financial Services (23.3*0), Trading and Logistics (19.8*0), and
Professional Services (1 1.6%)
Source: Hong Kong Census and Statistics Department,
Economist Intelligence Unit (EIU)
From 1997 until 2019, Hong Kong operated with a high
degree of autonomy, and many residents resisted efforts by
the PRC government to increase its influence and control
over Hong Kong, particularly over electoral and national
security issues. Hong Kong is governed by an indirectly
elected Chief Executive and Legislative Council (LegCo)
and operates with a legal system based on British Common
Law. Due to its strong institutions, including an
independent legal system, Hong Kong became an important
global trade and financial center, and a key window for
trade, investment, and finance within the PRC. Under the
terms of the Joint Declaration, Hong Kong maintains
separate membership in more than 40 international
organizations, including the World Trade Organization
(WTO), the World Bank, the International Monetary Fund
(IMF), and the World Health Organization (WHO).
Hundreds of U.S. companies maintain operations in Hong
Kong, and the territory hosts the Asia headquarters of many
major multinational corporations.
Recent Developments
In recent years, the PRC and HKSAR governments have
acted in ways that appear to violate commitments under the
Basic Law, i.e., those related to political and human rights.
National Security Law
On June 30, 2020, China's legislature approved a national
security law (NSL) for the HKSAR, which criminalizes the
organization and perpetration of terrorist activities,
secession, subversion, and collusion with a foreign country
or with external elements to endanger national security.
The PRC and HKSAR governments said that the law was
necessary to restore order following large-scale protests in
2019, and alleged that foreign anti-China forces were
trying to bring chaos to Hong Kong.
Hong Kong authorities have applied the NSL actively. In
February 2021, Hong Kong authorities charged 47 pro-
democracy figures with conspiracy to commit subversion
in connection to their involvement in organizing an election
primary for the September 2020 LegCo elections. The NSL,
as written, applies to alleged violations committed by
anyone, anywhere in the world, including in the United
States. The maximum penalty for violations is life in prison.
The NSL also allows the PRC government to exercise
jurisdiction over alleged violations of the law and prosecute
and adjudicate the cases in mainland China.
The Hong Kong Police Force (HKPF) has arrested more
than 10,000 people for alleged crimes committed during the
2019 protests. More than 2,300 arrestees have been charged
in Hong Kong courts; more than 200 have been convicted,
including about 140 who pleaded guilty. The HKSAR
increasingly seems to be wielding the NSL as an instrument
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