In the few years that have gone by from the time when the ‘return’ of Hong Kong from British to Chinese dominion, a great deal of events has transformed, but nothing really is different. The civil liberties of the people of Hong Kong remain largely intact. Partly, this can be accredited to the augmented politicization of the citizens of Hong Kong. The autonomy of the media in Hong Kong is still tough, but in addition to tackles problems, both on the officially permitted face and from accusations of self-bowdlerization on the side of the press possessors disinclined to provoke China. Yet, still with these problems, most of the Hong Kong inhabitants seem not to make out a significant drop in their social liberties ever since 1996.
Here are some basic facts about Hong Kong; it has a population of approximately 6,911,702. It occupies an area of about 1,105 square kilometers. Hong Kong has a GDP of approximately 1.475 trillion Hong Kong dollars, or approximately 190 billion US dollars. It should also be noted that Hong Kong has real GDP growth in about 7%. This state has per capita GDP of 215, 007 Hong Kong dollars which is about 27, 566 US dollars. The unemployment rate is not high, as it stands at about 4.9%. The inflation rate stands at 2.0% and the trade with the United States is: 17.9 billion US dollars in exports and 7.9 billion US dollars in imports.
Presently, these opinionated, financial and literary transformations do not seem adequate to wear away the Hong Kong dividedness from the Chinese. On the other hand, there are characteristics to these transformations that call for observing. The financial transformations seem to be shadowing the present boundary connecting Hong Kong and the Chinese mainland, whereas the societal alterations may be shadowing the disparity between being Chinese and from Hong Kong. As the time passes, if the disconnection between the Chinese mainland and Hong Kong successfully vanishes for every useful reason, then the U.S may decide to re-examine the pronouncement to lengthen the Hong Kong singular handling (United States. Congress. Joint Economic Committee, 1997).
Financially, Hong Kong remains a key intercontinental economic hub and a principal entryway into the republic of China. On the other hand, Hong Kong’s financial communication with China has developed deeper and more extensive over previous couple of years than was anticipated, escalating the city’s financial associations with China. This more intimate knot to the mainland is being strengthened by the agreeing upon a gratis trade accord in the year 2003, known as the “Closer Economic Partnership Arrangement,” connecting China and Hong Kong. Existing financial and trade complications have elevated apprehensions that Hong Kong’s affiliation with China will swing in the future from one of synergy to complete incorporation, perhaps overlooking the HKSAR’s towering level of independence.
Ever since Hong Kong has been seeking complete autonomy from the western world there have been several obstacles. The United States has had a large influence on the financial system of Hong Kong. The ‘random’ fluctuations in the stocks are completely evident. China, being Hong Kong’s close neighbor has influenced even culture and administration of this state. Hong Kong would involve the United States in their policy making due to their financial capability and military in the world at large. China, on the other hand, is the key player in this. This could be attributed to the proximity. In recent times, China has invaded Hong Kong and affected the judicial and general administration in Hong Kong. Hong Kong cannot meet the expense of to have an insulated financial and communal arrangement like Singapore's. Contrasting Singapore, Hong Kong is in a novel epoch of indecision and is still stressed to find its foothold in the sphere scenery. It requires its conglomerate with China.
If Hong Kong attained complete independence, it would have significant impact on both the United States and China. For China, it would bring about numerous problems as China would be unable to access the resources that they were used to. Suffrage expansion notwithstanding, Hong Kong is fundamentally a city-state that is self-governed. Hong Kong is not below the authority of the Chinese financial, governmental, law-making and judicial arrangements. The main piece of indication of Hong Kong's diverse system is the absence of Chinese law enforcement agency in Hong Kong.
From a viable viewpoint, Hong Kong's intercontinental cargo airport is the realm's fullest and the Hong Kong global vessel harbour is the realm's 3rd fullest. Over 100 international delivery lines function from Hong Kong, linking to over 5,000 terminuses universal. A novel rail link is in the procedure of expansion, designations the Guangzhou-Shenzhen-Hong Kong Express Rail Link, and it will split present trip times sandwiched between Hong Kong and Guangzhou. Also, Wuhan will be about five hours from Hong Kong and Shanghai should be about eight hours. Corporations that integrate in Hong Kong too profit from its little and modest tax organization. With commercial levies restricted to an extreme of 16.5% and excise climaxing at 15%, in spite of having a small number of reputable dual tax agreements, Hong Kong has the 3rd lowermost tax desolation in the biosphere, as valued by Forbes' Tax Misery Index. Besides, despite Hong Kong's current arrangements to pledge to OECD tax ideologies, their customer privacy strategies remain robust. These are some of the ways in which the United States benefit from Hong Kong and stand to lose out on if Hong Kong gain full independence. (United States. Congress. Joint Economic Committee, 1997).
More or less, at the same time with the renouncing ceremonial that took place in the Hong Kong Convention, the Asian monetary predicament tackled many of the financial systems of the Southeast Asia. The disaster speedily moved athwart many countries in the East Asia, and by the conclusion of 1996, many of the Asian coinages had gone through noteworthy thrashings in worth with reference to the United States dollar; varying from a 14% drop for the Yen to a 56% drop for the Rupiah. On the other hand, two Asian financial systems, the Hong Kong dollar and the Chinese renminbi, did not go through the same drop in worth, due to their relationship to the United States dollar (United States. Congress. Joint Economic Committee, 1997).
The Hong Kong dollar’s connected exchange rate did not totally protect the Hong Kong financial system from the repercussions of the Asian Financial predicament. A hypothetical spasm on the Hong Kong dollar in August 1997 to power a de-networking was efficaciously boxed off to a great share by the $16 billion interference of the Hong Kong administration in the Hong Kong stock marketplace, arranged by then Financial Secretary and by the HKMA’s pronouncement to increase the sudden rate from 7% to 18%.
While these interferences protected the connected exchange rate, it enforced Hong Kong’s frugality to regulate by encouraging a shrill weakening in the national values of real property, shares, customer belongings, in addition to main wage cuts. For a passé of time, then Chief Executive made a temporary exertion to keep away the weakening in the landed property prices, an act for which he was extensively condemned as being more worried about guarding his magnate associates than serving the regular citizen, but in the conclusion, property values dropped approximately 41% in worth in the third sector of 1999. Hong Kong rapidly found itself in a deflationary slump with increasing joblessness (Chan, 2008).
Hong Kong’s retrieval from the additional set of outside tremors was leisurelier and feebler than its ricochet from the Asian Fiscal Predicament. Though, the HKSAR went through real monetary development between 2002 and 2004, the national values were persistent to tumble and the joblessness rate sustained to increase. A nonexistence of self-confidence in the Hong Kong commercial municipal and travelers in the boulevards caused the dying of many corporations and retail vittles athwart Hong Kong. The city had apparently mislaid its renowned pliability. Hong Kong was then hit by a third exterior shudder, Severe Acute Respiratory Syndrome. Stuck between October 2002 and June 2003, 289 persons in Hong Kong expired of SARS. In lieu of Hong Kong, SARS had a dual influence on the frugality. First, it meaningfully abridged travel, chiefly influxes from the U.S and the Western Europe. Additionally, many Hong Kong inhabitants were frightened to leave their households for the dread of infection. As a result, Hong Kong cafeterias, hostels, retail vittles and other native service businesses underwent a shrill weakening in trade(Chan, 2008).
The influence of the IVS and CEPA on Hong Kong was sturdy, but not deprived of its unforeseen penalties. The attendance of inland travelers in Hong Kong conveyed wanted respite to Hong Kong’s indisposed hotel, trade, cafeteria and industrial productions. Many of the inland travelers were from China’s nouveau riche, using cash at the top class guesthouses, eateries and marketing stores. Though, the arrival of inland travelers meant also the arrival of huge amounts of renminbi and stress on Hong Kong’s facilities subdivisions to absorb a third commercial philological, Mandarin Chinese. Consequently, Hong Kong became more familiar to the shepherding commerce in Mandarin and in renminbi(Zhao, 2004).
By discussing a free trade contract with China, Hong Kong has boosted its modest benefit on the Chinese inland. Underneath the standings of CEPA, over 1,500 goods of Hong Kong source can be introduced into the China price-free. Furthermore, an extensive diversity of the provision subdivisions is delivered better admission to the inland marketplace than specified in China’s concurrence arrangement. For some facility sectors, CEPA permits Hong Kong businesses to found exclusively-possessed companies in the Chinese continental that can contest in the inland marketplaces. For many of the expert amenities, like lawful, bookkeeping, etc., Hong Kong consultants are able to offer inadequate facilities in the Chinese inland that are forbidden to other “distant” consultants. Lastly, in the monetary subdivision, Hong Kong banks are permitted to provide the credit cards, bank accounts, and transmittals denominated in renminbi, although the Hong Kong inhabitants are permitted to change more money into renminbi than other “immigrants”, additionally they are allowed to open renminbi examination accounts (Chan, 2008).
Consequently, when taken as an entirety the Hong Kong-Pearl River Delta, financial area is analogous in GDP and trade capacity to China’s Yangtze River Delta area, using 50% of the land quantity and populace of its northern contestant. Though, a main variance between the two regions is the presence of the migration and customs boundary within the previous area, confusing the financial and craft movements within the area. As an associate of Legco lately labeled it, “The boundary was once seen as an assertion, but is currently observed as interference.” Some forecasters trust financial stresses will thrust Hong Kong administration bureaucrats to work more carefully with their contemporaries in southern China to discover methods to decrease the problems shaped by and at the boundary (Zhao, 2004).
On a scale of 1 to 100, I Hong Kong's influence stands at 70. The complete independence would benefit them immensely especially in the financial aspect, though in issues pertaining to security, this would be a problem. For the United States stands at 50, they would benefit in the trade aspect as China would not interfere though Hong Kong may choose to put in tough rules. China stands at 20, they would lose financially and trade wise as China depends on Hong Kong greatly. On position, Hong Kong's is 30, the United States is at 60 while China is at 1. With respects to salience, this issue is of grave importance to all these countries mostly Hong Kong. This is because it would result into a whole new era in the world. To China, it would mean a loss in an ally and a source of materials. to the United States it would mean openning up of a whole new market and maybe a victim of conspiracies and corruption.China stands at 90, Hong Kong stands at 80, while the US being 60. The calculation of policy standpoint for United States is:165690; for Hong Kong is: 154644; and for China is: 1656.