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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