Hong Kong Ten Years On

10 October 2007

A briefing paper published today by Chatham House assesses the success of Hong Kong in the past decade, and the challenges it faces in the future. While thriving economically, it remains in a transitional period politically, with democratic reforms as yet unimplemented.

Since becoming a Special Administrative Region (SAR) in 1997, Hong Kong has passed through economic turmoil, and a dramatic fall in property prices, to stand now as one of the world's most open, transparent and successful economies. It remains the largest investor in mainland China, and the key destination for mainland companies looking to list, with one of the world's fastest expanding stock exchanges. It is still a portal to the mainland Chinese market, and remains the gateway between China and Taiwan.

Politically Hong Kong remains in a transitional position, much as it was in 1997. While retaining its traditions of freedom of press and rule of law, political reform has not been pursued vigorously enough. Therefore Hong Kong's economic successes are balanced by its inability to transform itself into a fully functioning democracy.
The paper concludes that the for the next decade Hong Kong will face challenges in terms of not only political reform, but also the environment, rising inequality, and maintaining its unique identity in the face of competition of Shanghai and other mainland cities. However it can afford to face these problems with a great deal of confidence.

Read Hong Kong Ten Years On: An Assessment of the Special Administrative Region by Kerry Brown.

Dr Kerry Brown is an Associate Fellow on the Asia Programme at Chatham House.

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