One country, two systems

One country, two systems

What are the differences between Hong Kong and Mainland China?

Since 1841, Hong Kong had been a British colony until it was returned to China in 1997. Written in that time, the ‘Hong Kong Basic Law’ stated that Hong Kong would keep its currency, economic system based on capitalism as well as its legal system and human rights. A special administrative region of China (SAR) was created with an expiration date in 2047. The border between Mainland China and Hong Kong remained the same and thus Chinese citizens need a visa or permit to enter Hong Kong. Similarly, Macau - a former Portuguese colony - was provided with a high degree of autonomy after being reunified with China in 1999. The framework will remain unchanged for up to 50 years. Hong Kong’s economy has been one of the freest in the world since 1995 (The Heritage Foundation). It attracts international corporations thanks to its low tax regime, low corruption (The Corruption Perceptions Index 2019) and business-friendly environment. However, recently China has passed a new security law that challenges Hong Kong’s autonomy and might influence freedom of expression and security in SAR. It might also have an impact on the relations between foreign countries and businesses with Hong Kong and China. Hong Kongers’ confidence in the “One country, two systems” policy has been failing in the last 10 years.