Hong Kong

 

Bureau of East Asian and Pacific Affairs                                      
July 2007                                                                     
                                                                       
  Background Note: Hong Kong                                                  
                                                
  Aerial view of Hong Kong and its                                            
  harbor, May 29, 2007. [© AP Images]                                         
                                                                 
  Flag of Hong Kong is red with a stylized, white, five-petal bauhinia flower 
  in the center.                                                              
                                                                       
  PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Hong Kong Special Administrative Region                                     
                                                                       
  Geography                                                                   
  Area: 1,104 sq. km.; Hong Kong comprises Hong Kong Island, Kowloon, the New 
  Territories, and numerous small islands.                                    
  Terrain: Hilly to mountainous, with steep slopes and natural harbor.        
  Climate: Tropical monsoon. Cool and humid in winter, hot and rainy from     
  spring through summer, warm and sunny in fall.                              
                                                                       
  People                                                                      
  Population (2006): 6.9 million.                                             
  Population growth rate (2006): 0.9%.                                        
  Ethnic groups: Chinese 95%; other 5%.                                       
  Religions: About 43% participate in some form of religious practice.        
  Christian, about 9.6%.                                                      
  Languages: Cantonese (a dialect of Chinese) and English are official.       
  Education: Literacy--92% (95% male, 88% female).                            
  Health (2006): Infant mortality rate--1.8/1,000. Life expectancy--82.6 yrs. 
  (overall); 79.5 yrs. males, 85.6 yrs. females.                              
  Work force (2006): 3.6 million. Wholesale, retail, and import/export trades 
  and restaurants and hotels--28.9%; finance, insurance, real estate, and     
  business services--13.3%; manufacturing--4.4%.                              
                                                                       
  Government                                                                  
  Type: Special Administrative Region (SAR) of China, with its own constitution
  (the Basic Law).                                                            
  Branches: Executive--Administration: Chief Executive selected in March 2007;
  Executive Council, serving in an advisory role for the Chief Executive.     
  Legislative--Legislative Council elected in September 2004. Judicial--Court 
  of Final Appeal is highest court, other lower courts.                       
  Subdivisions: Hong Kong, Kowloon, New Territories.                          
  Suffrage: Permanent residents, at 18 years or over, living in Hong Kong for 
  the past 7 years are eligible to vote.                                      
                                                                       
  Economy (2006)                                                              
  GDP (2006): $188.8 billion.                                                 
  GDP real growth rate (2006): 6.8%.                                          
  Per capita GDP (2006): $27,527.                                             
  Natural resources: Outstanding deepwater harbor.                            
  Industry: Types--textiles, clothing, electronics, plastics, toys, watches,  
  clocks.                                                                     
  Trade: Exports--$315.5 billion: clothing, electronics, textiles, watches and
  clocks, office machinery. Imports--$333.3 billion: consumer goods, raw      
  materials and semi-manufactures, capital goods, foodstuffs, fuels.          
                                                                       
  PEOPLE                                                                      
  Hong Kong's population has increased steadily over the past decade, reaching
  about 6.9 million by 2006. Hong Kong is one of the most densely populated   
  areas in the world, with an overall density of some 6,250 people per square 
  kilometer. Cantonese, the official Chinese language in Hong Kong, is spoken 
  by most of the population. English, also an official language, is widely    
  understood. It is spoken by more than one-third of the population. Every    
  major religion is practiced freely in Hong Kong. All children are required by
  law to be in full-time education between the ages of 6 and 15. Preschool    
  education for most children begins at age 3. Primary school begins normally 
  at the age of 6 and lasts for 6 years. At about age 12, children progress to
  a 3-year course of junior secondary education. Most stay on for a 2-year    
  senior secondary course, while others join full-time vocational training.   
  More than 90% of children complete upper secondary education or equivalent  
  vocational education.                                                       
                                                                       
  HISTORY                                                                     
  According to archaeological studies initiated in the 1920s, human activity on
  Hong Kong dates back over five millennia. Excavated neolithic artifacts     
  suggest an influence from northern Chinese stone-age cultures. The territory
  was settled by Han Chinese during the seventh century, A.D., evidenced by the
  discovery of an ancient tomb at Lei Cheung Uk in Kowloon. The first major   
  migration from northern China to Hong Kong occurred during the Sung Dynasty 
  (960-1279). The British East India Company made the first successful sea    
  venture to China in 1699, and Hong Kong's trade with British merchants      
  developed rapidly soon after. After the Chinese defeat in the First Opium War
  (1839-42), Hong Kong was ceded to Britain in 1842 under the Treaty of       
  Nanking. Britain was granted a perpetual lease on the Kowloon Peninsula under
  the 1860 Convention of Beijing, which formally ended hostilities in the     
  Second Opium War (1856-58). The United Kingdom, concerned that Hong Kong    
  could not be defended unless surrounding areas also were under British      
  control, executed a 99-year lease of the New Territories in 1898,           
  significantly expanding the size of the Hong Kong colony.                   
                                                                       
  In the late 19th century and early 20th centuries, Hong Kong developed as a 
  warehousing and distribution center for U.K. trade with southern China. After
  the end of World War II and the communist takeover of Mainland China in 1949,
  hundreds of thousands of people fled from China to Hong Kong. Hong Kong     
  became an economic success and a manufacturing, commercial, finance, and    
  tourism center. High life expectancy, literacy, per capita income, and other
  socioeconomic measures attest to Hong Kong's achievements over the last five
  decades.                                                                    
                                                                       
  On July 1, 1997, China resumed the exercise of sovereignty over Hong Kong,  
  ending more than 150 years of British colonial rule. Hong Kong is a Special 
  Administrative Region of the People's Republic of China with a degree of    
  autonomy in all matters except foreign and defense affairs. According to the
  Sino-British Joint Declaration (1984) and the Basic Law, Hong Kong will     
  retain its political, economic, and judicial systems and unique way of life 
  for 50 years after reversion and will continue to participate in            
  international agreements and organizations under the name, "Hong Kong,      
  China."                                                                     
                                                                       
  GOVERNMENT AND POLITICAL CONDITIONS                                         
  The Hong Kong Special Administrative Region (SAR) is headed by Chief        
  Executive Donald Tsang, who first took office in 2005 and whose current term
  ends in 2012. The Election Committee that votes on the Chief Executive is   
  made up of approximately 800 Hong Kong residents from four constituency     
  groups: commercial, industrial, and financial interests; professionals;     
  labor, social services, and religious interests; and the legislature, the   
  Chinese People's Political Consultative Conference, and the P.R.C. National 
  People's Congress.                                                          
                                                                       
  In December 2006, supporters of pro-democracy Civic Party legislator Alan   
  Leong won 134 seats in the Election Committee, enabling Leong to challenge  
  incumbent Chief Executive Tsang's bid for a new five-year term in 2007.     
  Tsang, with solid support from the pro-government and pro-business sectors, 
  won the March 25, 2007 Election Committee vote with 649 of the 795 votes.   
  Leong garnered 123 votes.                                                   
                                                                       
  In July 2002, the Hong Kong Government implemented the Principal Officials  
  Accountability System, which was designed to make the government more       
  responsive to public concerns. Eleven political appointees, directly        
  responsible to the Chief Executive, were added to run the 11 policy bureaus.
  Three other senior civil service positions--the Chief Secretary, Financial  
  Secretary, and Justice Secretary--also were converted to political          
  appointments.                                                               
                                                                       
  While Hong Kong remains a free and open society where human rights are      
  respected, courts are independent, and there is well-established respect for
  the rule of law, residents are limited in their ability to change their     
  government, and the legislature is limited in its power to affect government
  policies. The September 12, 2004 Legislative Council elections were seen as 
  generally free, open, and widely contested, although Hong Kong groups have  
  alleged voter intimidation, manipulation, or pressure in connection with    
  them.                                                                       
                                                                       
  In April 2004, the P.R.C. National People's Congress Standing Committee     
  issued a decision on the scope and pace of constitutional reform, which laid
  out certain conditions for the process of democratic development. This      
  decision precluded major changes to the electoral systems for the 2007 Chief
  Executive and 2008 Legislative Council elections, with the result that no   
  significant reform of the electoral systems can be realized until the Chief 
  Executive and Legislative Council elections scheduled for 2012.             
                                                                       
  In December 2005 the Legislative Council rejected a Hong Kong               
  Government-proposed package of incremental reforms to the mechanisms for    
  choosing the Chief Executive in 2007 and forming the Legislative Council in 
  2008. In mid-2007, the Hong Kong Government's Commission on Strategic       
  Development is scheduled to issue new proposals to reform the Chief Executive
  and Legislative Council electoral mechanisms, with the "ultimate aim" of    
  universal suffrage as prescribed by the Basic Law.                          
                                                                       
  Principal Government Officials                                              
  Chief Executive--Donald Tsang                                               
  Chief Secretary for Administration--Henry Tang                              
  Financial Secretary--John Tsang                                             
  Secretary for Justice--Wong Yan Lung, SC                                    
  Secretary for Education--Michael Suen                                       
  Secretary for Commerce and Economic Development--Frederick Ma               
  Secretary for Constitutional and Mainland Affairs--Stephen Lam              
  Secretary for Security--Ambrose Lee                                         
  Secretary for Food and Health--York Chow                                    
  Secretary for the Civil Service--Denise Yue                                 
  Secretary for Home Affairs--Tsang Tak-sing                                  
  Secretary for Labour and Welfare--Matthew Cheung                            
  Secretary for Financial Services and the Treasury--K C Chan                 
  Secretary for Development--Carrie Lam                                       
  Secretary for the Environment--Edward Yau                                   
  Secretary for Transport and Housing--Eva Cheng                              
                                                                       
  ECONOMY                                                                     
  Hong Kong is one of the world's most open and dynamic economies. Hong Kong  
  per capita GDP is comparable to other developed countries. Real GDP expanded
  by 6.8% in 2006 year-on-year, driven by thriving exports, vibrant inbound   
  tourism and strong consumer spending. Severe acute respiratory syndrome     
  (SARS) caused the Hong Kong economy to shrink during the first half of 2003,
  and property prices had fallen 66% from their late 1997 peak, but have since
  rebounded by about 59% from that lower base. The unemployment rate declined 
  to 4.3% in December 2006-February 2007, the lowest level since mid-1998. The
  surplus for fiscal year 2006-07 was $7.1 billion or 3.7% of GDP, attributed 
  to the robust economy, increased corporate profits and salaries, the buoyant
  stock market, and a stable property market.                                 
                                                                       
  Hong Kong enjoys a number of economic strengths, including accumulated public
  and private wealth from decades of unprecedented growth, a sound banking    
  system, virtually no public debt, a strong legal system, and an able and    
  rigorously enforced anti-corruption regime. The need for economic           
  restructuring poses difficult challenges and choices for the government. Hong
  Kong is endeavoring to improve its attractiveness as a commercial and trading
  center, especially after China's entry into the World Trade Organization    
  (WTO), and continues to refine its financial architecture. The government is
  deepening its economic interaction with the Pearl River Delta in an effort to
  maintain Hong Kong's position as a gateway to China. These efforts include  
  the conclusion of a free trade agreement with China, the Closer Economic    
  Partnership Arrangement (CEPA), which applies zero tariffs to all Hong      
  Kong-origin goods and preferential treatment in 27 service sectors. Hong    
  Kong, along with the Macau SAR, is also participating in a new pan-Pearl    
  River Delta trade block with nine Chinese provinces, which aims to lower    
  trade barriers among members, standardize regulations, and improve          
  infrastructure. U.S. companies have a generally favorable view of Hong Kong's
  business environment, including its legal system and the free flow of       
  information, low taxation, and infrastructure. The American Chamber of      
  Commerce's annual business confidence survey, released in December 2006,    
  showed 100% of respondents had a "good" or "satisfactory" outlook for 2007. 
  Survey results indicated a positive economic outlook through 2009.          
                                                                       
  On the international front, Hong Kong is a separate and active member of the
  WTO and the Asia Pacific Economic Cooperation (APEC) forum, where it is an  
  articulate and effective champion of free markets and the reduction of trade
  barriers. Hong Kong residents across the political spectrum supported China's
  accession to the WTO, believing this would open new opportunities on the    
  mainland for local firms and stabilize relations between Hong Kong's two most
  important trade and investment partners, the United States and China.       
                                                                       
  FOREIGN RELATIONS                                                           
  Hong Kong's foreign relations and defense are the responsibility of China.  
  Hong Kong is an independent customs territory and economic entity separate  
  from the rest of China and is able to enter into international agreements on
  its own behalf in commercial and economic matters. Hong Kong, independently 
  of China, participates as a full member of numerous international economic  
  organizations including the World Trade Organization (WTO), the Asia Pacific
  Economic Cooperation forum (APEC), and the Financial Action Task Force      
  (FATF).                                                                     
                                                                       
  U.S.-HONG KONG RELATIONS                                                    
  U.S. policy toward Hong Kong, grounded in a determination to promote Hong   
  Kong's prosperity, autonomy, and way of life, is stated in the U.S.-Hong Kong
  Policy Act of 1992. The United States maintains substantial economic and    
  political interests in Hong Kong. The United States supports Hong Kong's    
  autonomy by concluding and implementing bilateral agreements; promoting trade
  and investment; arranging high-level visits; broadening law enforcement     
  cooperation; bolstering educational, academic, and cultural links; and      
  supporting the large community of U.S. citizens and visitors.               
                                                                       
  Hong Kong is an active member of the global coalition against terrorism. Hong
  Kong has joined the Container Security Initiative and remains an important  
  partner with regard to eliminating funding for terrorist networks and       
  combating money laundering. Hong Kong has passed legislation designed to    
  bring Hong Kong into compliance with applicable UN anti-terror resolutions  
  and Financial Action Task Force recommendations.                            
                                                                       
  The United States has substantial economic and social ties with Hong Kong.  
  There are some 1,100 U.S. firms, including 889 regional operations (295     
  regional headquarters and 594 regional offices), and about 54,000 American  
  residents in Hong Kong. According to U.S. Government statistics, U.S. exports
  to Hong Kong totaled $17.8 billion in 2006. U.S. direct investment in Hong  
  Kong at the end of 2005 totaled about $37.9 billion, making the United States
  one of Hong Kong's largest investors, along with China, Japan, and the      
  Netherlands.                                                                
                                                                       
  The United States and Hong Kong signed a civil aviation agreement in October
  2002, which significantly liberalized the aviation market. Hong Kong enjoys a
  high degree of autonomy as a separate customs territory, with no changes to 
  borders, staffing, or technology export controls since the 1997 handover.   
  Intellectual property rights (IPR) protection has improved substantially in 
  recent years and the introduction of effective new legislation to control   
  illicit production and improved enforcement has now made Hong Kong a regional
  model for effective IPR protection. The Office of the U.S. Trade            
  Representative and other U.S. agencies now regularly cite Hong Kong as an   
  example for others.                                                         
                                                                       
  The Hong Kong Government maintains three Economic and Trade Offices in the  
  United States. Addresses, telephone numbers, and web sites for these offices
  are listed below:                                                           
                                                                       
  1520 - 18th Street NW                                                       
  Washington, DC 20036                                                        
  Tel: (202) 331-8947                                                         
  Fax: (202) 331-8958                                                         
  Web Site: http://www.hketowashington.gov.hk/dc/index.htm                    
                                                                       
  115 East 54th Street                                                        
  New York, NY 10022                                                          
  Tel: (212) 752-3320                                                         
  Fax: (212) 752-3395                                                         
  Web Site: http://www.hketony.gov.hk/ny/index.htm                            
                                                                       
  130 Montgomery Street                                                       
  San Francisco, CA 94104                                                     
  Tel: (415) 835-9300                                                         
  Fax: (415) 421-0646                                                         
  Web Site: http://www.hketosf.gov.hk/sf/index.htm                            
                                                                       
  Principal U.S. Officials                                                    
  Consul General--James B. Cunningham                                         
  Deputy Principal Officer--Chris Marut                                       
                                                                       
  The U.S. Consulate General is located at 26 Garden Road, Hong Kong. Tel:    
  (852) 2523-9011 (general). Fax: (852) 2845-1598 (general); (852) 2147-5790  
  (consular); (852) 2845-9800 (commercial).                                   
                                                                       
  TRAVEL AND BUSINESS INFORMATION                                             
  The U.S. Department of State's Consular Information Program advises Americans
  traveling and residing abroad through Consular Information Sheets, Public   
  Announcements, and Travel Warnings. Consular Information Sheets exist for all
  countries and include information on entry and exit requirements, currency  
  regulations, health conditions, safety and security, crime, political       
  disturbances, and the addresses of the U.S. embassies and consulates abroad.
  Public Announcements are issued to disseminate information quickly about    
  terrorist threats and other relatively short-term conditions overseas that  
  pose significant risks to the security of American travelers. Travel Warnings
  are issued when the State Department recommends that Americans avoid travel 
  to a certain country because the situation is dangerous or unstable.        
                                                                       
  For the latest security information, Americans living and traveling abroad  
  should regularly monitor the Department's Bureau of Consular Affairs Internet
  web site at http://www.travel.state.gov, where the current Worldwide Caution,
  Public Announcements, and Travel Warnings can be found. Consular Affairs    
  Publications, which contain information on obtaining passports and planning a
  safe trip abroad, are also available at http://www.travel.state.gov. For    
  additional information on international travel, see http://www.usa.gov/     
  Citizen/Topics/Travel/International.shtml.                                  
                                                                       
  The Department of State encourages all U.S citizens who traveling or residing
  abroad to register via the State Department's travel registration website or
  at the nearest U.S. embassy or consulate abroad. Registration will make your
  presence and whereabouts known in case it is necessary to contact you in an 
  emergency and will enable you to receive up-to-date information on security 
  conditions.                                                                 
                                                                       
  Emergency information concerning Americans traveling abroad may be obtained 
  by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular   
  toll line 1-202-501-4444 for callers outside the U.S. and Canada.           
                                                                       
  The National Passport Information Center (NPIC) is the U.S. Department of   
  State's single, centralized public contact center for U.S. passport         
  information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service   
  representatives and operators for TDD/TTY are available Monday-Friday, 7:00 
  a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.           
                                                                       
  Travelers can check the latest health information with the U.S. Centers for 
  Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP
  (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the
  most recent health advisories, immunization recommendations or requirements,
  and advice on food and drinking water safety for regions and countries. A   
  booklet entitled "Health Information for International Travel" (HHS         
  publication number CDC-95-8280) is available from the U.S. Government       
  Printing Office, Washington, DC 20402, tel. (202) 512-1800.                 
                                                                       
  Further Electronic Information                                              
  Department of State Web Site. Available on the Internet at http://          
  www.state.gov, the Department of State web site provides timely, global     
  access to official U.S. foreign policy information, including Background    
  Notes and daily press briefings along with the directory of key officers of 
  Foreign Service posts and more. The Overseas Security Advisory Council (OSAC)
  provides security information and regional news that impact U.S. companies  
  working abroad through its website http://www.osac.gov                      
                                                                       
  Export.gov provides a portal to all export-related assistance and market    
  information offered by the federal government and provides trade leads, free
  export counseling, help with the export process, and more.                  
  STAT-USA/Internet, a service of the U.S. Department of Commerce, provides   
  authoritative economic, business, and international trade information from  
  the Federal government. The site includes current and historical            
  trade-related releases, international market research, trade opportunities, 
  and country analysis and provides access to the National Trade Data Bank.   

 

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