The Hong Kong
Special Administrative Region
The area constituting
Hong Kong is located on the southeast coast of China, east of the
mouth of the Pearl River and bordering Shenzhen City in Guangdong
Province. It consists of Hong Kong Island, Kowloon and the New Territories,
with a total area of 1,092 sq km. Hong Kong has been Chinese territory
since ancient times.
Hong Kong was
occupied by Britain after the Opium War in 1840. In accordance with
the Sino-British Joint Declaration on the Question of Hong Kong
signed on December 19, 1984, the two governments held a hand-over
ceremony on July 1, 1997, announcing the resumption of sovereignty
by China over Hong Kong. Thus the common, long-cherished wish of
the Chinese people to recover Hong Kong was fulfilled. Meanwhile
the Hong Kong Special Administrative Region (HKSAR) of the PRC was
formally established. The Basic Law of the Hong Kong Special Administrative
Region, adopted in April 1990 at the Third Session of the Seventh
National People's
Congress, came into effect. The Basic Law makes clear and definite
specifications on a high degree of autonomy, and the political,
economic, cultural and educational systems of the HKSAR.
A High Degree
of Autonomy The Chinese
government carries out the basic policies of ??one country, two systems,??
??administration of Hong Kong by the Hong Kong people?? and ??a high
degree of autonomy.?? ??One country, two systems?? refers to the fact
that in China, a unified country, the mainland practices the socialist
system, and Hong Kong??s previous capitalist system and way of life
shall remain unchanged for 50 years; ??administration of Hong Kong
by the Hong Kong people?? means that the HKSAR is administered by
the Hong Kong people on their own, and the central authorities shall
not send officials to the HKSAR to fill local official posts; and
??a high degree of autonomy* means that apart from foreign and national
defense affairs that should be administered by the central authorities,
the HKSAR shall fully enjoy the power of decision over matters within
its autonomous jurisdiction, including executive, legislative, independent
judicial and final adjudication powers.
The high degree
of autonomy of the HKSAR has the following features: First, the
central authorities shall not interfere in affairs within the scope
of autonomy of the HKSAR. Second, the HKSAR government shall have
the final say on matters within its autonomous jurisdiction as prescribed
in the Basic Law, calling for no approval by the central authorities.
And third, the government of the HKSAR may, within the limits prescribed
by the Basic Law, choose its own means of exercising its functions
and powers.
Political System
A democratic political system is practiced in the HKSAR.
Its major organs of power are the Chief Executive, the Government,
the Legislative Council and the Court of Final Appeal. In addition,
there is the Executive Council, a body which assists the Chief Executive
in decision-making, and the Commission Against Corruption and the
Audit Commission, which function independently and are accountable
to the Chief Executive. Under the Government, the executive power
organ of the HKSAR, there are the Department of Administration,
the Department of Finance, the Department of Justice, and various
bureaus, divisions and commissions. In the conditions and following
the procedures prescribed by law, the Chief Executive shall have
the power to dismiss the legislative organs; the legislative organs
shall have the power to impeach the Chief Executive; the administrative
organs shall be accountable to the legislative organs; the Chief
Executive, administrative and legislative organs shall supervise
and cooperate with each other.
The Chief Executive
of the HKSAR shall be the head of the HKSAR, as well as the head
of the HKSAR government. His or her dual status gives him or her
extensive functions and powers. The Chief Executive shall be selected
from among residents of the HKSAR by election or through consultations
held locally, and be appointed by the Central Government. The term
of office of the Chief Executive shall be five years. He or she
may serve for not more than two consecutive terms. Tung Chee Hwa
was elected the first Chief Executive of the HKSAR.
Economic System
A free economic system is practiced in the HKSAR. The operation
mechanisms of this economic system are mainly manifested in the
fields of finance, banking, trade, industry and commerce, real estate,
shipping and civil aviation. For instance, in accordance with the
law, the HKSAR shall protect the property rights of individuals,
and shall have independent finances, using its financial revenues
exclusively for its own purposes. The financial revenues shall not
be handed over to the Central Government. The Central Government
shall not levy taxes in the HKSAR; the HKSAR shall practice an independent
taxation system and a low-tax policy, and shall enact laws on its
own concerning types of taxes, tax rates, tax reductions, allowances
and exemptions, and other matters of taxation. The HKSAR shall maintain
its status as an international financial center,
work out its monetary and financial policies on its own,
and safeguard the free operation of financial business and the financial
market. No foreign exchange control shall be applied in the HKSAR.
The Hong Kong dollar shall continue to be freely convertible. Markets
for foreign exchange, gold, securities, futures and the like shall
continue to operate. The HKSAR government shall safeguard the free
flow of capital within, into and out of the Region. The HKSAR shall
maintain its status as a free port, adopt the policy of free trade,
and safeguard the free movement of goods, intangible assets and
capital. The HKSAR shall maintain its status as an international
shipping center and may, on its own, stipulate the concrete functions
and responsibilities in this field. The HKSAR shall maintain its
status as an international and regional aviation center, and shall
be responsible for the daily work and technological management of
civil aviation.
As a separate
customs territory, the HKSAR may, using the name ??Hong Kong, China,??
join the WTO and other relevant international organizations and
international trade agreements.
Cultural and
Educational Systems The
HKSAR shall, on its own, work out policies on education, culture,
science and technology. Educational institutions of all kinds shall
retain their autonomy and enjoy academic freedom. They may continue
to recruit staff, and use teaching materials from outside the HKSAR.
Students shall enjoy freedom of choice of educational institutions
and freedom to pursue their education outside the HKSAR. The HKSAR
government shall neither restrict the freedom of religious belief,
nor interfere in the internal affairs of religious organizations.
Religious organizations and believers in the HKSAR may maintain
and develop their relations with their counterparts elsewhere; religious
organizations may, according to their previous practice, continue
to run seminaries and other schools, hospitals, welfare institutions,
etc. Non-governmental organizations in various fields, including
education, science, technology, culture, art, sports, and medicine
and health in the HKSAR, may maintain and develop their relationships
with relevant organizations of other countries and regions, and
with international organizations. They also may participate in relevant
activities in the name of ??Kong Kong, China.??
In addition to the Chinese
language, English may also be used as an official language by the
executive, legislative and judiciary authorities of the HKSAR.
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