The Hong Kong Special Administrative Region can look back on its 28-year history with considerable pride and satisfaction as a unique story of resilience and resurgence.
The constitutional change on July 1, 1997, was effected in a relatively simple manner with pomp and ceremonies; but integrating Hong Kong into the nation after more than 150 years of British rule, while keeping its separate systems, would be a far more complex undertaking. The implementers would face multiple problems arising from political change, identity crises, and an outdated economic model hammering the upgrading of Hong Kong’s economy.
The events that followed testify to the magnitude of the difficulty in fully and accurately implementing the “one country, two systems” framework. One of the top priorities was safeguarding national security. As the most open and international city of the nation but equipped with outmoded and incomplete national security legislation, Hong Kong was wide open to national security threats. They became increasingly serious and menacing after the failed attempt to enact a local-version national security legislation in 2003.
Anti-national education protests in 2012 were followed by the unlawful “Occupy Central” movement in 2014, the short-lived but violent riots on the first day of Chinese New Year in 2016, and the political violence in 2019 and early 2020 which threatened to overthrow the local government and foment “Hong Kong independence”. The violent attacks on government, the vandalism of properties and the intimidation of innocent civilians were well orchestrated and followed the playbook for “color revolution” attempted in other territories. The prolonged violence was quelled only after the National People’s Congress Standing Committee stepped in and enacted a national security law for Hong Kong effective June 30, 2020. The national law filled yawning gaps in local laws and created four specific offenses prohibiting secession, subversion, terrorist activities and collusion with external forces.
In March 2024, the HKSAR government finally completed its constitutional duty to uphold national security through enacting the Safeguarding National Security Ordinance. In May this year, Hong Kong’s legislature further strengthened the enforcement mechanism by designating six locations as “prohibited places” and clarifying the mandate and functions of the Office for Safeguarding National Security established by the Central People’s Government in Hong Kong.
Although insidious threats to poison the minds of young people and disorient residents continue to lurk, safety and security have returned to Hong Kong, providing a solid foundation for economic recovery and development.
The HKSAR government also faced a daunting task restoring the “executive-led” political system, which was undermined by efforts to rush through an inchoate electoral system in the final days of British rule. The intent was to tie the hands of the local administration in implementing the “one country, two systems” principle to the disadvantage of China. Safeguarding the HKSAR’s separate systems was used as a cunning subterfuge to disparage China, and alienate Hong Kong compatriots from their motherland. Again, thanks to the decisions taken by the National People’s Congress to strictly enforce the “patriots only” requirement for public offices, and reform the Legislative Council and district councils, political order returned and both councils resumed their proper functions.
Hong Kong has endured much turmoil in the past 28 years. Some problems were inherited, while others were fomented by external elements. It is a fine balance between maintaining Hong Kong’s freedoms and openness and staving off external threats feeding on Hong Kong’s open environment. It is to the local administration’s credit that it succeeded in strengthening national awareness while refurbishing Hong Kong’s reputation as a premier global financial and trading hub, and a highly regarded common law jurisdiction.
China’s leading-edge technologies in artificial intelligence, robotics, electronic vehicles, batteries and satellites are spawning new industries. ... With strong backing from the central authorities, Hong Kong has withstood many challenges in the past 28 years. It remains for Hong Kong to grasp new opportunities to scale new heights
Thanks to the collective efforts of government, business, academia and civil society, Hong Kong’s international rankings recovered across a broad spectrum. It is particularly noteworthy that on the financial front, Hong Kong achieved third place in the Global Financial Centres Index 37 released in March, only two points behind London. Fueled by the Chinese mainland’s technological breakthroughs and listing polices favoring Hong Kong, plus flight of capital from the West in the wake of turmoil in the United States, the Hang Seng Index rose 16.1 percent by end of May, building on a 17 percent surge in 2024. Daily average turnover of the Hong Kong Stock Exchange reached HK$210.3 billion ($ 26.9 billion) in May, twice the average daily turnover of HK$105 billion ($13.4 billion) in 2023.
The drive for the establishment of family offices in Hong Kong reached a new high as the numbers are predicted to reach 3,000 by the end of this year. Hong Kong also enacted a landmark Stablecoins Ordinance in May, scheduled to enter into force in August, which would consolidate Hong Kong’s position as a digital financial hub underpinned by robust regulation.
Despite the many positive developments on the financial front, Hong Kong needs to speed up its economic transformation to create greater value through making use of technology and innovation. Hong Kong has substantially increased its investment in technology and reindustrialization. Yet progress in building the tech parks in San Tin in northwestern New Territories and in the Hong Kong-Shenzhen Innovation and Technology Park at Hetao (the Lok Ma Chau loop) remains slow. The reality is that the rapid modernization of nearby cities in the mainland and the nation’s technological advancement are transforming Hong Kong’s competitive landscape. Hong Kong residents’ apparently unstoppable northbound travels to take advantage of the value services of mainland cities are clear evidence of a new economic paradigm.
China’s leading-edge technologies in artificial intelligence, robotics, electronic vehicles, batteries and satellites are spawning new industries. Low-altitude economy and low-orbit satellites, already raised in the budget speech of Financial Secretary Paul Chan Mo-po in February 2025, are good examples of the new industries HKSAR could foster, making use of the “new quality productive forces” urged by top leaders. With strong backing from the central authorities, Hong Kong has withstood many challenges in the past 28 years. It remains for Hong Kong to grasp new opportunities to scale new heights.
The author is convener of the Executive Council and a legislator.
The views do not necessarily reflect those of China Daily.
