MCLC: State Council white paper on HK
Denton, Kirk
denton.2 at osu.edu
Wed Jun 11 09:04:14 EDT 2014
MCLC LIST
From: Anne Henochowicz <anne at chinadigitatimes.net>
Subject: State Council white paper on HK
**********************************************************
Source: SCMP (6/10/14):
htp://www.scmp.com/news/hong-kong/article/1529167/full-text-practice-one-c
untry-two-systems-policy-hong-kong-special
Full text: Chinese State Cuncil white paper on ‘One Country, Two Systems’
policy in Hong Kong
The Inormation Office of the State Council issued a white paper on the
practice of the "one country, two systems" policy in Hong Kon on Tuesday.
Following is the full text:
The Practice of the "One ountry, Two Systems" Policy in the Hong Kong
Special Administrative Regon
* Foreword
* I. Hong Kong's Smooth Return to China
* II. Establishent of the Special Administrative Region System in Hong
Kong
* III. Compreensive Progress Made in Various Undertakings in the HKSAR
* IV. Effort Made by the Central Government to Ensure the Prosperity and
Development ofthe HKSAR
* V. Fully and Accurately Understanding and Implementing th Policy of
"One Country, Two Systems"
* Conclusion
Foreword
"One counry, two systems" is a basic state policy the Chinese government
has adoptd to realize the peaceful reunification of the country.
Following this pinciple, the Chinese government successfully solved the
question of Hng Kong through diplomatic negotiations with the British
government, ad resumed the exercise of sovereignty over Hong Kong on July
1, 1997, flfilling the common aspiration of the Chinese people for the
recovery of ong Kong. As a result, Hong Kong got rid of colonial rule and
returned o the embrace of the motherland, and embarked on the broad road
of common evelopment with the mainland, as they complemented each other's
Avantages.
Hong Kong's return to the motherland turned "one country, wo systems"
from a scientific concept into vivid reality. The central govrnment
strictly adheres to the Basic Law of Hong Kong, earnestly performs its
constitutional duties and stands firm in supporting the administraion of
the chief executive and the government of the Hong Kong Special
Administrative Region (HKSAR) i accordance with the law. The HKSAR
exercises a high degree of autonomy inaccordance with the law, and is
vested with executive, legislativeand independent judicial power,
including that of final adjudication. The pevious capitalist system and
way of life remain unchanged, and most las continue to apply. Hong Kong
continues to prosper, its society remains stble, and full development is
being witnessed in all undertakings. Te "one country, two systems" policy
enjoys growing popularity in Hong Kong,winning the wholehearted support
from Hong Kong compatriots as well as eople in all other parts of China.
It is also thought highly by the intenational community.
"One country, two systems" is a new doman in which we constantly explore
new possibilities and make new progressin pioneering spirit. A summary of
the policy's implementation in the HKSAR, and a comprehensive and correct
understanding and impleentation of the policy will prove useful for
safeguarding China'sovereignty, security and development interests, for
maintaining long-termprosperity and stability in Hong Kong, and for
further promoting the "on country, two systems" practice along the
correct track of developent.
I. Hong Kong's Smooth Return to China
In the early 1980s, Cina's state leader Deng Xiaoping put forward the
scientific concept known a "one country, two systems" in an effort to
realize the peaceful reunifiation of China, and this ingenious design was
first applied to solve the qustion of Hong Kong. According to Deng
Xiaoping, "one country, two systems means there is only but one China and
under this premise the mainland dheres to the socialist system while Hong
Kong, Macau and Taiwan may retai their capitalist systems over a long
time to come.
On December 4, 192, the Fifth Session of the Fifth National People's
Congress (NPC) endored a new Constitution of the People's Republic of
China. Its Article 31 rovides, "The state may establish special
administrative regions when necessary. The systems to be instituted in
special administrative regins shall be prescribed by law enacted by the
National People's Congress inthe light of the specific conditions."
Giving expression to the "one countr, two systems" concept, this Article
provides the constitutional basis forthe establishment of special
administrative regions in certain areas thatadopt different social
systems and different policies from those on th mainland, as the Chinese
government makes efforts to realize the peacefulreunification of China.
After in-depth investigations and research, the hinese government
formulated 12 basic policies regarding the question of Hog Kong, known as
the "12 Principles," in early 1983. The main contents ere: (1) The
Chinese government decided to resume the exercis of sovereignty over Hong
Kong as of July 1, 1997. (2) After resuming theexercise of sovereignty
over Hong Kong, the central government would estabish a special
administrative region in Hong Kong in accordance with theprovisions in
Article 31 of the Constitution. The Hong Kong Special Adinistrative
Region would be directly under the authority of the Central Peple's
Government and would enjoy a high degree of autonomy. (3) The HKAR would
be vested with legislative and independent judicial power, includng that
of final adjudication. The laws, decrees and regulatins currently in
force in Hong Kong would remain basically unchanged. (4) Th government of
the HKSAR would be composed of local inhabitants. The princial officials
would be selected by election or through consultations held loally and be
appointed by the Central People's Government. Those previouslyworking in
the public and police services in the government departments o Hong Kong
may remain in employment. British and other foreign nationals may also be
employd to serve as advisers to government departments of the HKSAR. (5)
The currnt social and economic systems in Hong Kong would remain
unchaged, and so would the life-style. Freedoms, including those of
speech, of te press, of assembly, of association, of travel, of movement,
of corrspondence, and of religious belief would be ensured in the HKSAR.
Privae property, ownership of enterprises, legitimate right of
inheritance and freign investment would be protected by law. (6) The
HKSAR would retain th status of a free port and a separate customs
territory. (7) The HKSA would retain the status of a financial center,
and its markets for foreig exchange, gold, securities and futures would
continue. There would contine to be a free flow of capital, and the Hong
Kong dollar would continue to irculate and remain freely convertible. (8)
The HKSAR would have independen finances. (9) The HKSAR may establish
mutually beneficial economic elations with the United Kingdom, whose
economic interests in Hong Kong wuld be given due regard. (10) Using the
name "Hong Kong, China," the HKSAR ay on its own maintain and develop
economic and cultural relations nd conclude relevant agreements with
states, regions and relevant internaional organizations. The government
of the HKSAR may itself issue trave documents for entry into and exit
from Hong Kong. (11) The maintenance ofpublic order in the HKSAR would be
the responsibility of the governmet of the HKSAR. And (12) the
above-stated policies would be stipulated in te Basic Law of the HKSAR by
the NPC of the People's Republic of China(PRC), and they would remain
unchanged for 50 years. (more)
During hi meeting with the visiting British Prime Minister Margaret
Thatcher on Sptember 24, 1982, Deng Xiaoping made clear the Chinese
government'sposition on the question of Hong Kong, pointing out that
sovereignty ws not a matter for discussion and that China would take back
Hong Kong in1997. It was under this premise that China and Britain would
negotate to ensure the smooth transfer of Hong Kong and clarify what was
to be dne about Hong Kong 15 years later. This marked the beginning of
the negotations between China and Britain on the question of Hong Kong.
On December 9, 1984, after 22 rounds of negotiations, the governments of
China ad Britain signed the Joint Declaration of the Government of the
People's Republic of China and the Government of the United Kingdom of
Great Britain and Northern Ireland on the uestion of Hong Kong in
Beijing, confirming that the government of the RC would resume its
exercise of sovereignty over Hong Kong with effct from July 1, 1997. The
Chinese government also made clear in the JointDeclaration its basic
policies regarding Hong Kong based on the "12 Priciples." The signing of
the Sino-British Joint Declaration marked the entryof Hong Kong into a
13-year transition period before its return to Chna. During this period,
the Chinese government unswervingly followed th "one country, two
systems" policy, closely relied on the Hong Kong compatiots, and
resolutely held off interference to promote the preparation wrk for Hong
Kong's return.
On April 10, 1985, the Third Sessionof the Sixth NPC decided to form the
Drafting Committee for the Basic La of the HKSAR of the PRC. In July, the
Drafting Committee began its work It completed its mission in February
1990, taking four years and eight mnths to develop the Basic Law of Hong
Kong. The drafting of the Basic Lawof Hong Kong was highly democratic and
open, and the compatriots of Hong Kog were widely involved. Twenty-three
of the 59 members of the Drafting Comittee came from various walks of
life in Hong Kong, and the Drafting Cmmittee entrusted its Hong Kng
members to set up a 180-member counseling committee in Hong Kong to
collet the views and opinions of the people of Hong Kong. In April 988,
the Drafting Committee published the Basic Law of Hong Kong (draft) fr
comments, and in February 1989 the Standing Committee of the NPC made
pulic the Basic Law of the HKSAR (draft) and twice widely solicited vews
in Hong Kong and on the mainland. People from all walks of lif in Hong
Kong and the mainland took active part in the deliberation and dscussion
of the draft, and in Hong Kong alone nearly 80,000 files of viws and
comments were collected. The Basic Law of Hong Kong embodies the cmmon
will of all Chinese people, including Hong Kong compatriots, and
encapulates the wisdom of the Chinese nation.
On April 4, 1990, the Third Sesion of the Seventh NPC passed the Basic
Law of the Hong Kong Special Aministrative Region of the People's
Republic of China, and made the deciion to establish the HKSAR. The Basic
Law of the HKSAR is a basic law frmulated in accordance with the
Constitution of the People's Republic of Chna. It stipulates the system
and policies to be instituted in the HKSA, and is the legalization and
institutionalization of the "one country, to systems" policy. It also
provides a legal basis for the implementationof "one country, two
systems" in the HKSAR. The Basic Law was lauded by eng Xiaoping as a "law
of historic and international significance" and "a ceative masterpiece."
Following the promulgation of the Basic Law, the Chinee government began
preparation work for the establishment of the HKSAR. In July 1993, the NPC
Standing Committee athorized the formation of the Preliminary Working
Commission of the Prepartory Committee of the HKSAR (the Preliminary
Working Commission). In Januar 1996, the Preparatory Committee of the
HKSAR of the NPC (the Preparatory Cmmittee) was established. Both the
commission and the committee did a grat deal of work for the smooth
transition and transfer of government in Hog Kong.
On July 1, 1997, the Chinese government resumed its exercise f
sovereignty over Hong Kong. At the same time, the HKSAR was established
and the Basic Law came into effect. Hong Kong entered a new epoch
charaterized by "one country, two systems," "Hong Kong people governing
Hong Kog" and a high degree of autonomy. As members of the big Chinese
family, te people of Hong Kong and the people of the mainland share the
pride and gory of the great mother country, and bear the common
responsibility and mssion of rejuvenation of the Chinese nation.
II. Establishmentof the Special Administrative Region System in Hong Kong
The system ofthe special administrative region, as prescribed in the
Constitution of th People's Republic of China and the Basic Law of the
HKSAR, is a specal administrative system developed by the state for
certain regions. Under his system, the central government exercises
overall jurisdiction over the HKSAR, including the powers directly
exercised by thecentral government, and the powers delegated to the HKSAR
by the central overnment to enable it to exercise a high degree of
autonomy in accordancewith the law. The central government has the power
of oversight over the xercise of a high degree of autonomy in the HKSAR.
1. The Central Leadrship Directly Exercises Jurisdiction over the HKSAR
in Accordance wit the Law
As prescribed in the Constitution of the People's Republc of China and
the Basic Law of the HKSAR, the organs of power by whch the central
leadership directly exercises jurisdiction over the HKSR are the NPC and
its Standing Committee, the president of the state, the Cntral People's
Government, and the Central Military Commission. TheNPC decided on the
establishment of the HKSAR, formulated the Basic Lawof the HKSAR to
prescribe the system to be instituted in the HKSAR, andhas the power of
amendment to the Basic Law. The NPC Standing Cmmittee has the power of
interpretation regarding the Basic Law of the HKAR, the power of decision
on revising the selection methods of the chief xecutive and the
Legislative Council of the HKSAR, the power of supevision over the laws
formulated by the legislative organs of the HKSAR, te power of decision
on the HKSAR entering a state of emergency, and the poer of making new
authorization for the HKSAR. The HKSAR comes directly unde the Central
People's Government, and its chief executive is accountableto the Central
People's Government. The Central People's Government ppoints the chief
executive and the principal officials, is responsible forforeign affairs
relating to the HKSAR in accordance with the law, and issues directives to
the chief executive. The Cntral Military Commission is the leading body
of the Hong Kong garrison, an performs defense and other duties. The
central authorities perform overal jurisdiction and constitutional duties
as prescribed in the Constitutio of the People's Republic of China and in
the Basic Law of the HKSAR, ad exercise effective administration over the
HKSAR.
-Forming the powe organs of the HKSAR. Prior to the return of Hong Kong,
the Preparatory Comittee of the HKSAR completed the organization of the
Selection Committe of the First Government of the HKSAR. The Selection
Committee electe Tung Chee-hwa as the first chief executive of the HKSAR,
and then the Cenral People's Government appointed him as the chief
executive. The SelectionCommittee also elected members of the interim
Legislative Council. The firs chief executive, Tung Chee-hwa, appointed
the judges of the Court o Final Appeal, and the chief justice of the High
Court. The competion of the above work ensured the effective
administration of the HKSAR bythe central leadership upon its
establishment. After the return of Hong Kong to China, theCentral
People's Government appointed Tung Chee-hwa, Donald Tsang nd Leung
Chun-ying, all elected, as chief executives of the HKSAR inthat order,
and appointed and dismissed key officials of their administations.
China's state leaders attended the inauguration ceremones of the chief
executives and key government officials, and heard them tak their oaths
of office.
-Supporting and guiding the administration of th chief executive and
government of the HKSAR in accordance with the law The chief executive
reports his/her work to the central governmen on an annual basis, on the
implementation of the Basic Law and other tems for which he/she is
accountable to the central government; andthe state leaders give guidance
to the chief executive on major matters reated to the implementation of
the Bsic Law. The central government has established the Hong Kong and
Macau Affirs Office of the State Council as an administrative office of
the StateCouncil to handle Hong Kong and Macau affairs. The office works
to implment the "one country, two systems" principle and related
directives of thecentral government, and is responsible for communicating
with the governmen of the HKSAR. The Liaison Office of the Central
People's Government inthe HKSAR is a resident organ of the Central
People's Government in HongKong. Its duties involve communication with
the Office of the Commissioer of the Ministry of Foreign Affairs in the
HKSAR and the PLA Hong Kng Garrison, the promotion of exchanges and
cooperation between Hong Kongand the mainland in various areas,
communication with personages from all sectors of Hong Kong society, and
the handlin of affairs involving Taiwan.
-Responsible for foreign affairs involvingthe HKSAR. First, the central
leadership supports the HKSAR in actively carying out international
exchanges and cooperation; supports and assists th HKSAR in participating
in international organizations and conferencesin a proper capacity;
assists the HKSAR in bidding to host important iternational conferences
of various kinds, and supports the HKSAR in develoing international
conference centers, regional legal services and disputesettlement
centers; supports the recommendation of Hong Kong residents to take up
posts in international organzations; supports the promotion of visa
waivers for HKSAR passport holdersin other countries and regions; and
supports the work of trade office of the HKSAR government in other
countries and regions. Second,the role of the central leadership also
includes properly handling legal isues involving Hong Kong, such as the
application of international conventons in Hong Kong. The number of
multilateral treaties and amendments thathave become applicable in the
HKSAR now exceeds 170, and the number of ageements concluded with other
countries with the authorization of the entral government regarding
invetment protection, civil aviation, taxation and judicial assistance
hasreached 338. The central government assists the HKSAR in acceting
reviews on the implementation of international conventions, supports t in
maintaining and developing ties, and in signing and implementing treties
and agreements with other countries, regions and related internatioal
organizations in the name of "Hong Kong, China" in the areas of econom,
trade, finance, maritime transport, communications, tourism, cultue and
sports. It also authorizes and assists Hong Kong in conducting judical
cooperation with other countries. Third, it ratifies the establishmnt of
consulates and other governmental or quasi-governmental oranizations of
foreign countries in the HKSAR. Currently, there re 66 consulates-general
set up by foreign countries under related agreemnts in the HKSAR, with 73
honorary consuls. Fourth, it strives to enure the safety and legitimate
rights and interests of Hong Kong comatriots while in other countries,
and actively offers consular protectionto Hong Kong travelers abroad. By
the end of 2013, Chinese embassies an consulates overseas had handled
over 10,000 cases of consular protecton involving Hong Kong residents.
Fifth, it prevents foreign forcesfrom interfering in Hong Kong's affairs.
Hong Kong's affairs are internl affairs of China, and the Chinese
government has made timely representations with certain countries through
diplomatic channel regarding their words and actions of interference. The
Ministry o Foreign Affairs has established the Office of the Commissioner
in the HKSR to attend to foreign affairs involving Hong Kong.
-Responsible for he defense of the HKSAR. The central leadership made the
decision andauthorized the formation of the People's Liberation Army
(PLA) Hong Kong Garison in January 1996, and on December 30 the same
year, the 23rd Sesson of the Eighth NPC Standing Committee adopted the
Law of the People's epublic of China on Garrisoning the Hong Kong Special
Administrative Regin. At midnight on July 1, 1997, troops of the PLA Hong
Kong Garriso entered Hong Kong to take over the defense of the HKSAR. The
Garrison's dties include guarding against and resisting aggression,
ensuring the securiy of the HKSAR, performing defense services, managing
military installatins, and handling military affairs involving other
countries in accordance ith the law. The Garrison adheres to the law in
performing its duties, an oversees military conduct in accordance with
the law. It diligently fulills its duties in defense, organizing sea and
air patrols and carrying ou search and rescue exercises in case of
maritime or air emergencies, joit exercises of combined arms, and
cross-district maneuvers, vigorouslysafeguarding China's sovereignty and
territorial integrity. The Garrison also activel takes part in activities
to promote the public good in Hong Kong, invitinglocal residents to visit
the Garrison barracks and holding summer militry camps for young
students, in an effort to strengthen ties between the Garrison and the
local cmmunity. All this has helped enhance the mutual understanding and
trust etween the Garrison and the people of Hong Kong, fully exemplifying
the valor and good conduct of th PLA.
-Exercising power granted to the NPC Standing Committee by the
Constitution of the PRC and the Basic Law of the HKSAR. First, the NPC
Standng Committee keeps record of the laws drawn up by the legislature of
he HKSAR for review. By the end of 2013, the HKSAR had reported a total
of 70 local laws to the NPC Standing Committee for the record. Second, it
adds or subtacts national laws applicable in the HKSAR as listed in Annex
III of the Basic Law of the HKSAR. Currently, 12 national aws are listed
in Annex III of the Basic Law of the HKSAR for implementatio. Third, it
makes new authorizations to the HKSAR. In 1996, the NPC Standig Committee
empowered the HKSAR government to appoint its immigration deprtment as
the office to accept applications for nationality in the HKSAR and handle
he applications in accordance with the Nationality Law and its
interpretatons. In 2006, the NPC Standing Committee authorized the HKSAR
to run the Hong Kong section of the Shenzhen ay Port in accordance with
the laws of the HKSAR. Fourth, it makes interretations regarding the
Basic Law of the HKSAR. The NPC Standing Committee ade interpretations of
the related articles of the Basic Law in 1999, 204, 2005 and 2011 on the
following questions respectively: the right of abode in Hog Kong for
permanent Hong Kong residents' children born outside Hong Kong ad with
Chinese nationality, the legal procedure for modifying the selection
methods of the chief executive and theLegislative Council, the length of
the term of a by-elected chief executive, and the principles of state
immunity, and interpretatins of relevant provisions in the Basic Law and
its appendixes. Fifth, it dcides on issues relating to the constitutional
development in the HKSAR. Te NPC Standing Committee made decisions in
2004 and 2007, respectively,on the selection method of the chief
executive for 2007 and the Legislativ Council for 2008, and the selection
method of the chief executive, te Legislative Council and the general
election for 2012. Sixth, it ratifis and keeps record of the amendments
to the selection methods of the chiefexecutive and Legislative Council of
the HKSAR. In 2010, the NPC Standing Committee ratified the HKSAR's
amendment to the selection method of he chief executive for 2012,
agreeing to put on record the amendment tothe selection method and voting
procedure of the Legislative Council for 2012. Seveth, it keeps records
of the appointment and removal of the judges of the Cort of Final Appeal
and the chief judge of the High Court of the HKSAR. In addiion, according
to the Basic Law of the HKSAR and relevant decisions of th NPC, the Basic
Law Committee of the HKSAR of the NPC Standing Committee, etablished on
July 1, 1997, when the Basic Law came into effect, is coposed of members
from the mainland and Hong Kong, and is responsible for providing opinions
to theNPC Standing Committee on issues such as whether the laws drawn up
by the HKSAR's legislature comply with the provisions of the Basic Law on
the rage of affairs responsible by the central government and the
relationshp between the central government and the HKSAR, on adding or
subtracting th national laws applicable in Hong Kong as listed in Annex
III and on the iterpretation or revision of the Basic Law, and related
issues. (more)
2.The HKSAR Exercises a High Degree of Autonomy in Accordance with the Lw
After the establishment of the HKSAR, the previous capitalist system and
way of life remain unchanged in Hong Kng, and existing laws remain
basically unchanged. Adhering to the law, th HKSAR protects the right of
ownership of private property, maintains th status of Hong Kong as a free
port and a separate customs territory, mantains independent finances,
practices an independent taxation system, an formulates its own policies
regarding trade, finance, education, science,culture, public health and
sports. In accordance with the Basic Law of the HKSAR and the decision of
the NPC Stading Committee on handling the laws previously practiced in
Hong Kong, thelaws previously in force in Hong Kong, that is, the common
law, rules of quity, ordinances, subordinate legislation and customary
law are maintained except for any that contravene the Basic Law and are
subject to anyamendment by the legislature of the HKSAR. On this basis,
the HKSAR execises a high degree of autonomy, and fully exercises its
administraive, legislative and independent judicial power, including that
of final adjudication.
The chief executive of the HKSAR is the head of th Special Administrative
Region. He/she represents the HKSAR and is accountale to both the Central
People's Government and the HKSAR. he chief executive is also the head of
the government of the Special Adminitrative Region, and exercises powers
and functions conferred by the BasicLaw, such as leading the government
of the region and being responsible fo the implementation of the Basic
Law. While exercising his/her powes and functions, the chief executive
shall implement the directives isued by the Central People's Government
in respect of the relevant matters provided for in the Basic Law of the
HKSAR. The government of the KSAR is composed of permanent residents of
Hong Kong in accordance with he relevant provisions of the Basic Law,
with a Department of Administratin, a Department of Finance, a Department
of Justice, and various bureaus, divisions and commissions to exercie
powers and functions such as formulating and implementing policies and
cnducting administrative affairs, as prescribed by the Basic Law. The
HKSR enjoys administrative power in a wide range of areas, including the
conomy, education, science, culture, sports, religion, social services
public order, and control of entry and exit of the region. In additio,
the HKSAR conducts external affairs as authorized by the Central eople's
Government.
The Legislative Council of the HKSAR is he legislature of the HKSAR. It
is formed by election, and exercises the ollowing powers and functions in
accordance with the Basic Law: enacting, mending or repealing laws in
accordance with the provisions of the Basc Law and legal procedures;
examining and approving budgets introduced by te government, and
approving taxation and public expenditure, among others. The HKSAR enjoys
legislative powr in a wide range of areas, and is empowered to formulate
laws relating to ivil, criminal and commercial affairs, as well as
judicial proceedings, fr application in the region in accordance with the
Basic Law. The aws drawn up by the Legislative Council of the HKSAR must
be reported t the NPC Standing Committee for the record. If the NPC
Standing Committee after consulting the Committee for the Basic Law of
the HKSAR, consides that any law enacted by the legislature of the region
is not in coformity with the provisions of the Basic Law regarding
affairs within the esponsibility of the central leadership or regarding
the relationshp between the central leadership and the region, the
Standing Committee may return the law in questio but shall not amend it.
Any law returned by the NPC Standing Committee i immediately invalidated.
The courts of the HKSAR at all levels are the judiciary of the region,
exercising te judicial power of the region. After the establishment of
the HKSAR, theCourt of Final Appeal was established to exercise the power
of fina adjudication in the region. The judicial system previously
practiced n Hong Kong is maintained except for those changes consequent
upon the stablishment of the Court of Final Appeal. The common law and
relevant jdicial principles and systems previously practiced in Hong
Kong, including the prnciple of independent adjudication, the principle
of following precedent, and the jury system, continue to apply. The
courts of the HKSAR have no jrisdiction over acts of state such as
defense and foreign affairs. They hve jurisdiction over all civil and
criminal cases in the region, except that the restrictons on their
jurisdiction imposed by the legal system and principles previosly in
force in Hong Kong are maintained. When adjudicating cases, the cours of
the HKSAR may refer to precedents of other common law jurisdiction, and
the Court of Final Appeal may as required invite judges from other common
law urisdictions to sit in the Court of Final Appeal.
III. Comprehensive rogress Made in Various Undertakings in the HKSAR
Since the establishmnt of the HKSAR, the government of the Special
Administrative Region has, wth energetic support from the central
government and the mainland, rallied people of all walks of life in Hong
Kong, worked hard and vercome difficulties, made full use of the
advantage of the policy of "one ountry, two systems," maintained overall
social, economic and political staility, promoted the development of all
undertakings and made new achevements one after another.
-HKSAR residents' fundamental rights and freedoms are fully protected.Hong Kong residents enjoy basic rights and freedoms in accordance with thelaw, which are under the full protection of the Constitution, the Basic
La and the local laws. The Constitution and the Basic Law safeguard the
HKSAR residents' fundamental rights and freedoms at the contitutional
level. The HKSAR provides further protection to residents'rights and
freedoms by enacting the Sex Discrimination Ordinance, Race Discimination
Ordinance, Personal Data (Privacy) Ordinance, Independent Police
omplaints Council (IPCC) Ordinance, Minimum Wage Ordinance and other
ordiances. A multitude of organs, including the Equal Opportunity
Commission, ffice of the Privacy Commissioner for Personal Data, Office
of th Ombudsman, Legal Aid Department, Independent Police Complaints
Counil, Legal Aid Services Council, Women's Commission and Commission on
Povery, have been set up by the HKSAR government to help promote and
protect HKSAR residents' fundamental rights nd freedoms.In addition, the
Basic Law explicitly stipulates that Chinese ctizens who are residents of
the HKSAR shall be entitled to participatio in the management of state
affairs according to law. In accordance withthe assigned number of seats
and the selection method specified by the NPC, the Chinese citizens amng
the HKSAR residents elect deputies of the region to the NPC to particpate
in the work of China's supreme organ of state power. The HKSAR ha held in
succession four such elections and 36 deputies were elected each time by
thebroadly representative Conference for Electing Deputies of the HKSARto the NPC. The Chinese People's Political Consultative Conferene (CPPCC)
always values the participation of Hong Kong compatriots. Aside fom
specially inviting Hong Kong personages, other CPPCC groups also inclue
representatives from Hong Kong. The 12th CPPCC National Committee had a
124-member Hong Kong group, and 16 other CPPCC groups had 82 membersfrom
Hong Kong.
-The democratic political system has been steadily romoted. Before the
return of Hong Kong to China in 1997, the United Kingdom designated
governors to enforce colonial rule over Hong Kong for more tha 150 years.
Since 1997, the HKSAR government and the legislature hve been composed of
local residents. The chief executive of the HKSAR is appointed by the
Central People's Government on the basis of the results of elections or
consultations held locally; the legislature of the HKSAR is established by
elections. The Basic Law of the HKSAR explicitly stipulates that the chief
executive and all the members of the Legislative Council must be elected
by universal suffrage, making universal suffrage a legal objective. Since
the establishment of the HKSAR, the central government and the HKSAR
government have unswervingly and steadily promoted Hong Kong's democratic
political system, featuring the election methods for the chief executive
and the Legislative Council, according to the Basic Law and relevant
decisions of the NPC Standing Committee.
The election of the chief executive of the HKSAR has become increasingly
democratic. Candidates for the first chief executive were elected by a
400-member Selection Committee, while candidates for the second, third and
fourth chief executives were elected by the Election Committee, the
membership of which in the meantime had grown from 800 to 1,200. Members
of the Election Committee came from the four major sectors of "industry,
commerce and finance," "the professions," "labor, social services,
religious and other sectors" and "members of the Legislative Council,
representatives of district boards and Heung Yee Kuk, HKSAR deputies to
the NPC, and representatives of HKSAR members of the National Committee of
the CPPCC" in equal proportions. Such a composition is an expression of
equal participation and broad representativeness.
The election of the Legislative Council is becoming more and more direct.
The first Legislative Council formed in 1998 had 20 members elected
directly by geographical constituencies, 30 members by functional
constituencies, and ten members by the Election Committee. The second
Legislative Council formed in 2000 had 24 members elected directly by
geographical constituencies, 30 members by functional constituencies, and
six members by the Election Committee. The third and fourth Legislative
Councils formed respectively in 2004 and 2008 both had 30 members elected
directly by geographical constituencies, and 30 members by functional
constituencies. The membership of the fifth Legislative Council elected in
2012 expanded to 70, including 35 members elected directly by geographical
constituencies and 35 members by functional constituencies. The additional
five members elected by functional constituencies were nominated by
district boards, and elected by voters who had enjoyed no right to vote
under functional constituencies.
The timetable has been set for universal suffrage. The 31st Session of the
Standing Committee of the Tenth NPC made a decision on December 29, 2007
"that the election of the fifth chief executive of the HKSAR in 2017 may
be implemented by the method of universal suffrage; that after the chief
executive is selected by universal suffrage, the election of the
Legislative Council of the HKSAR may be implemented by the method of
electing all the members by universal suffrage," thus setting a timetable
for the selection of the chief executive and all members of the
Legislative Council by universal suffrage. From December 4, 2013 to May 3,
2014, the HKSAR government initiated a five-month public consultation on
the election of the chief executive in 2017 and that of the Legislative
Council in 2016, starting the relevant procedures for introducing
universal suffrage. (more)
-The HKSAR has maintained steady economic growth. From 1997 to 2013, Hong
Kong's Gross Regional Product (GRP) grew by 3.4 percent annually in real
terms, and its per-capita GRP increased by a total of 39.3 percent
calculated in US dollar. According to the 2013 statistics of the
International Monetary Fund (IMF), Hong Kong's GRP and per-capita GRP,
respectively, ranked the 35th and 7th in the world, as calculated by
purchasing power parity.
Hong Kong has maintained and enhanced its status as an international
financial, trade and shipping center. As an important international
banking center, Hong Kong boasts the world's sixth-largest securities
market and fifth-largest foreign exchange market. Hong Kong ranks high in
various lists of international financial centers. As the world's
ninth-largest trading economy, Hong Kong has regular trading ties with
almost every country and region in the world. Hong Kong is one of the
world's largest container shipping ports and fourth-largest
ship-registration center. The Hong Kong International Airport is one of
the world's busiest. Its air freight volume has led the world for many
years, and its passenger transport volume ranks fifth.
Hong Kong's robust industries have been strengthened even further. Trade
and logistics, tourism, finance, and professional services and support
services for industry and commerce continue to play an important role as
Hong Kong's four pillar industries. In 2012, these four sectors employed
47.2 percent of Hong Kong's total working population, and their added
value accounted for 58 percent of Hong Kong's total GRP. Hong Kong also
focuses on the cultivation and development of the cultural and creative,
innovation and technology, testing and certification, and environmental
protection industries.
Hong Kong has maintained a sound business environment, and is generally
recognized as one of the world's freest economies. For many years, it has
ranked high in the World Bank's evaluation of business environments of 185
economies. In its World Investment Report 2013, the United Nations
Conference on Trade and Development (UNCTAD) ranked Hong Kong the third in
the world in attracting foreign direct investment (FDI). For many years,
Hong Kong has been listed among the world's most competitive economies by
the World Competitiveness Yearbook compiled by the International Institute
for Management Development based in Lausanne, Switzerland.
-Social programs have been further enhanced. Hong Kong leads the
Asia-Pacific region in education, as the HKSAR government continues to
increase its investment in education, the biggest government expenditure
item. During the 2014-2015 fiscal year, the HKSAR government's current
budgetary spending on education reached HK$75.37 billion. Since the
2008-2009 school year, Hong Kong has implemented 12-year free education in
public schools. The University of Hong Kong and the Hong Kong University
of Science and Technology are among Asia's top-ten universities, according
to the Times Higher Education Asian University Rankings 2013. The
University of Hong Kong was the 43rd according to the World University
Rankings 2013-2014. Hong Kong continues to rank high in the global test of
the Program for International Student Assessment (PISA) 2012, which
reflects the quality of primary education.
Hong Kong continues to provide quality medical and health care services.
During the 2014-2015 fiscal year, the HKSAR government's budget for
expenditure on medical and health care is HK$52.4 billion, accounting for
17 percent of the government's recurrent expenditure. All Hong Kong
residents enjoy equal access to affordable public medical services. By the
end of 2012, Hong Kong had more than 35,500 beds in various medical
institutions. The infant mortality rate dropped from 4 per thousand in
1997 to 1.6 per thousand in 2013, which is among the world's lowest. In
2013, the life expectancy of Hong Kong's male and female residents was
80.9 years and 86.6 years, respectively, which are among the world's
highest.
Cultural and sports activities are flourishing in Hong Kong, where the
Chinese and foreign cultures intermingle. The HKSAR government encourages
the diverse development of Hong Kong's culture and promotes cultural
exchanges. Four unique Hong Kong cultural events were added to the third
batch of the State-level Non-material Cultural Heritage List, namely, Yu
Lan Ghost Festival, Tai Hang fire dragon dance, Tai O dragon boat parade,
and Cheung Chau Jiao Festival. Hong Kong hosted the equestrian events of
the Beijing 2008 Olympic Games, and the fifth East Asian Games in 2009.
Hong Kong athletes have excelled themselves in events such as windsurfing,
table tennis, cycling and martial arts during the Olympics, World
Championships and Asian Championships.
Hong Kong's social security service has been continuously improved. During
the fiscal year 2014-2015 the HKSAR government's budget for social welfare
reached HK$61.9 billion, 3.03 times as compared with the HK$20.4 billion
during the fiscal year 1997-1998. Hong Kong has put in place a multilayer
and diversified social security and welfare service system. Hong Kong has
more than 400 social service agencies, and the number of registered social
workers has increased from 8,300 at the end of 1998 to more than 18,000
today. The HKSAR government actively promotes the construction of public
housing, moves low-wage residents into public housing, and provides
financial aid to those who purchase housing units. Around half of Hong
Kong's residents live in housing provided or funded by the government.
Among them, more than 2 million live in rented public housing, and over 1
million have purchased housing units with government financial aid.
-Hong Kong's international exchanges and its international influence have
further expanded. Hong Kong's international exchanges have been broadened.
By June 2013, Hong Kong, as a member of a Chinese government delegation or
in other appropriate capacities, had participated in 41 events held by
inter-governmental international organizations, and joined 37
inter-governmental international organizations whose membership is not
limited to sovereign states. As a member of a Chinese government
delegation or in other appropriate capacities, Hong Kong has attended more
than 1,400 international meetings; using the name of "Hong Kong, China" it
has attended more than 20,000 international meetings not limited to
states. It has also hosted or co-hosted more than 1,000 international
meetings. The HKSAR has visa waiver agreements with 42 countries, and 150
countries or regions provide visa-free entry or grant visas upon arrival
to HKSAR passports holders. Hong Kong has civil air transport agreements,
agreements on avoidance of double taxation, agreements on investment
promotion and protection, and agreements on criminal justice assistance
with many countries. The HKSAR government has economic and trade offices
in 11 places, such as Geneva, London, Tokyo, New York and Berlin. Six
international organizations, including the European Commission, have
representative offices in Hong Kong.
Outstanding Hong Kong professionals have taken important positions in
international organizations. Supported by the central government, Chan
Fung Fu-chun, former director of health of the HKSAR, was elected
director-general of the World Health Organization (WHO) in November 2006,
and was reelected in May 2012. She is the first Chinese to head an
inter-government international organization since the founding of the
United Nations. Shun Chi-ming, director of the Hong Kong Observatory, was
elected president of the Commission for Aeronautical Meteorology of the
World Meteorological Organization in February 2010.
IV. Efforts Made by the Central Government to Ensure the Prosperity and
Development of the HKSAR
The central government has always given high priority to Hong Kong's
economic development and improvement of its people's livelihood, and fully
supported it in meeting various difficulties and challenges. It gives full
play to its role in adopting and executing the national development
strategy, and actively promotes exchanges and cooperation between Hong
Kong and the mainland, thus providing solid backing for Hong Kong's
prosperity and stability.
1. Supporting the HKSAR in Defusing Risks and Meeting Challenges
-Supporting Hong Kong in the fight against the Asian financial crisis. In
1997, the Asian financial crisis broke out, and spread rapidly around the
region. Hong Kong was attacked by international speculative forces, its
financial market was volatile, its dollar pegged exchange rate system came
under attack, and its financial system faced a grave threat. Given these
circumstances, the central government solemnly announced that it would
safeguard the stability and prosperity of the HKSAR at all costs, strongly
support the HKSAR government in protecting the pegged exchange rate
system, and not depreciate the RMB. With this support from the central
government, the HKSAR government took swift measures that ensured the
stability of its financial system and the Hong Kong society.
-Supporting Hong Kong in the fight against SARS. In the first half of
2003, the SARS epidemic hit Hong Kong. It not only posed a threat to the
lives and health of the Hong Kong people, but also dealt a blow to Hong
Kong's economy that had not recovered from the Asian financial crisis,
resulting in deflation, market slump and a high unemployment rate of 8.7
percent. To ensure the safety of life of the Hong Kong people and help the
Hong Kong economy climb out of recession, the central government promptly
lent a helping hand. Although the mainland also needed medical supplies in
the fight against SARS, the central government provided a large quantity
of free medical supplies to Hong Kong. The Chinese leaders also went to
the hardest-hit areas and hospitals of Hong Kong to inspect local
conditions and console victims. On June 29, the mainland and Hong Kong
signed the Mainland and Hong Kong Closer Economic Partnership Arrangement
(CEPA), which outlines the steps that the mainland and Hong Kong should
take in trade in goods and services, and trade and investment facilitation
as well as the goals to be achieved. Later, the Individual Visit Scheme
was introduced, allowing mainland residents to visit Hong Kong on their
own. These measures helped Hong Kong overcome the SARS attack and boosted
its economic growth.
-Supporting Hong Kong in the fight against the international financial
crisis. When the international financial crisis broke out in the second
half of 2008, the central government was highly concerned about its impact
on Hong Kong. In December of that year, it introduced 14 policies to
ensure economic and financial stability in Hong Kong. In January 2009, the
central government launched more policies, including the signing of a
RMB200 billion currency swap agreement by the People's Bank of China with
the Hong Kong Monetary Authority. Later, when visiting Hong Kong, the
Chinese leaders announced a number of policies to support Hong Kong's
economic development, improve the local people's livelihood, and
strengthen its exchanges and cooperation with the mainland. All these
policies played a positive role in boosting confidence, strengthening
capability to defuse risks and stimulating the economic recovery of Hong
Kong.
2. Supporting the HKSAR in Reinforcing and Enhancing Its Competitive
Strengths
-Supporting Hong Kong as an international center of finance, trade and
shipping. The central government supports Hong Kong in launching
individual use of RMB, issuing RMB bonds and conducting trials of RMB
settlement in cross-border trade, thus consolidating Hong Kong's position
as a leading offshore RMB market. It has continued to encourage the
listing of mainland enterprises on the stock market in Hong Kong, and
introduced other measures to support Hong Kong's financial sector. In
2013, a total of 216 Hong Kong banks joined the RMB clearing platform, and
the amount of cross-border RMB settlement in Hong Kong reached RMB3.84
trillion, accounting for 82.9 percent of the total cross-border RMB
settlement of China. The balance of Hong Kong's RMB customer deposits and
depository receipts reached RMB1 trillion. Hong Kong has become the
world's largest offshore RMB trading center. After the signing of the CEPA
in 2003 and its coming into force in January 2004, the mainland signed and
implemented ten supplementary agreements with Hong Kong. The mainland now
gives zero tariff treatment to all products of Hong Kong origin. From that
time to the end of 2013, the mainland imported from Hong Kong goods worth
US$7.161 billion under the CEPA, with tariff preference of RMB3.983
billion for Hong Kong. The mainland also adopted a total of 403
liberalization measures in respect of trade in services. Based on WTO
classification, the mainland has opened to Hong Kong 149 areas of trade in
services under the CEPA and its supplementary agreements, accounting for
93.1 percent of the total number of such areas of the mainland. This makes
the CEPA the most open agreement on free trade that the mainland has ever
signed. In addition, Guangdong Province has adopted 82 pilot measures to
open its services industries to Hong Kong. When drawing up the National
Plan for the Layout of Coastal Ports, and the 12th Five-Year Plan for the
Comprehensive Development of Transportation Systems, the central
government took into account the need to consolidate and enhance Hong
Kong's position as an international shipping center.
-Supporting Hong Kong in developing its tourism and retail sectors, and
Hong Kong-invested companies on the mainland. At the request of the HKSAR
government, the central government gradually expanded the Individual Visit
Scheme to 49 pilot cities, with a total population of over 300 million. By
the end of 2013, some 129 million mainland residents had visited Hong Kong
under the Individual Visit Scheme. According to estimate of the HKSAR
government, in 2012 alone the Individual Visit Scheme contributed to 1.3
percent increase of Hong Kong's GRP of the year, and it created more than
110,000 jobs, accounting for 3.1 percent of the local employment. To bring
more benefits to medium-sized and small businesses and residents in Hong
Kong, the central government also allows Hong Kong residents to start
individual businesses on the mainland. By the end of 2013, a total of
5,982 individual businesses opened by Hong Kong residents had been
registered on the mainland, employing 16,476 people. The central
government encourages the development of Hong Kong processing and trading
companies on the mainland, and has assisted the transformation and
upgrading of Hong Kong-invested companies on the mainland. In 2009,
Guangdong Province introduced 30 policies to help companies established
with Hong Kong, Macau and Taiwan investment weather the international
financial crisis and accelerate their transformation and upgrading. In
December 2011, the central government issued the Guidelines on Promoting
the Transformation and Upgrading of Processing Trade, and set up
demonstration zones and pilot cities for the transformation and upgrading
of processing trade in Suzhou and Dongguan, as well as 44 key areas in
central and western China to relocate enterprises of processing trade in a
phased way.
3. Supporting the HKSAR in Strengthening Exchanges and Cooperation in
Various Fields with the Mainland
Since Hong Kong's return to China in 1997, the central government has made
the maintenance of its prosperity and stability an important part of the
country's overall development strategy. Both the 10th and 11th Five-Year
Plans stress the need to ensure lasting prosperity and stability in Hong
Kong, and strengthen its position as an international center of finance,
trade and shipping. In the 12th Five-Year Plan, for the first time, the
development of Hong Kong and Macau is dealt with in an independent
section. This has further defined Hong Kong's strategic position in
China's development strategy and stressed the state support for Hong Kong
in enhancing its competitive edge, fostering emerging industries and
deepening economic cooperation with the mainland.
-Supporting the HKSAR further in developing economic and trade cooperation
with the mainland. The implementation of the CEPA and its supplementary
agreements has removed a great deal of institutional barriers in trade,
investment and other sectors between Hong Kong and the mainland,
strengthened their economic and trade relations, and broadened the range
of cooperation, with both sides benefiting from their cooperation.
Currently, the mainland is the largest trading partner of Hong Kong.
According to Hong Kong statistics, in 2013 the trade volume between Hong
Kong and the mainland reached HK$3.8913 trillion, 3.49 times that of 1997
and accounting for 51.1 percent of Hong Kong's external trade. At the same
time, Hong Kong is the mainland's most important trading partner, a key
export market and the mainland's largest off-shore financial center. By
the end of 2013, mainland enterprises listed in Hong Kong had totaled 797,
accounting for 48.5 percent of the total number of Hong Kong listed
companies. In addition, their total market value had reached HK$13.7
trillion, accounting for 56.9 percent of the total value of the Hong Kong
stock market. In addition, the mainland and Hong Kong are each other's
largest source of overseas direct investment (ODI). By the end of 2013,
Hong Kong's ODI from the mainland had exceeded US$358.8 billion,
accounting for nearly 60 percent of the mainland's total ODI; the mainland
had approved nearly 360,000 projects with Hong Kong investment, involving
US$665.67 billion in total and accounting for 47.7 percent of the
mainland's total ODI.
-Supporting the HKSAR in strengthening cooperation with mainland
provinces, autonomous regions and municipalities directly under the
central government, particularly Guangdong Province. The central
government has endorsed the establishment of the Hong Kong-Guangdong
Cooperation Joint Conference, and the Pan-Pearl River Delta Regional
Cooperation and Development Forum. It approved the implementation of the
Outline of the Plan for the Reform and Development of the Pearl River
Delta (2008-2020), the Overall Development Plan of Hengqin, the Overall
Development Plan for the Qianhai Shenzhen-Hong Kong Modern Service
Industry Cooperation Zone, and the Development Plan for the Nansha New
District of Guangzhou, and approved the signing by Guangdong with the
HKSAR of the Framework Agreement on Hong Kong-Guangdong Cooperation, which
identifies the three key areas of cooperation, namely, building the
Hengqin New District of Zhuhai, the Qianhai Shenzhen-Hong Kong Modern
Service Industry Cooperation Zone and the Nansha New District of
Guangzhou, the central government has urged Guangdong and Hong Kong to
work together to build more competitive world-class urban cluster with
cutting-edge manufacturing and service industries. The central government
has also approved the establishment by the HKSAR of regional cooperation
mechanisms with Beijing and Shanghai, and supported the HKSAR government
to set up offices on the mainland. Currently, in addition to its Beijing
Office, the HKSAR government has also set up commercial offices in
Guangzhou, Shanghai, Chengdu and Wuhan, and liaison offices in Shenzhen,
Chongqing and Fuzhou, which are instrumental in promoting Hong Kong's
economic and trade cooperation with the various localities in the mainland
and exchanges in other areas.
-Supporting efforts by the HKSAR and the mainland in cross-border
infrastructure construction and facilitation for personnel and cargo
customs clearance. The Hong Kong-Shenzhen Western Corridor, which opened
to traffic in 2007, has become the fourth land passage linking Hong Kong
with the mainland. The Hong Kong-Zhuhai-Macau Bridge, the construction of
which started in 2009 and scheduled for completion in 2016, will connect
Hong Kong in the east and Zhuhai and Macau in the west, and will become a
new road transport corridor linking eastern and western banks of the Pearl
River. The Guangzhou-Shenzhen-Hong Kong High-Speed Railway, when
completed, will connect Hong Kong with China's national high-speed rail
network. As things stand now, the mainland and Hong Kong have achieved
full mutual recognition of inspection results at all land and water ports.
In 2013, a total of 40.75 million mainland residents visited Hong Kong,
which was 17.3 times that of 1997; while 76.88 million Hong Kong residents
visited the mainland, up from 39.77 million in 1997.
-Supporting the HKSAR in strengthening exchanges and cooperation with the
mainland in education, science and technology, culture and some other
fields. The central government has supported universities of Hong Kong and
the mainland in enrolling students from each other; supported cooperation
in academic affairs between institutions of higher learning of Hong Kong
and the mainland, and supported teaching staff and students from the two
sides in carrying out exchange activities. It has supported Hong Kong's
institutions of higher learning, research bodies and the science and
technology parks in Hong Kong in setting up Partner Labs of Key State
Laboratories, the Hong Kong branch of the National Engineering Research
Center and the National High-tech Industrialization Base; supported Hong
Kong universities in establishing research institutes in Shenzhen;
supported Hong Kong science workers and institutions in applying for
projects under China's National Research Program; and endeavored to make
the country's key sci-tech projects more accessible to Hong Kong. In 2005,
the mainland and Hong Kong signed the Mainland and Hong Kong Closer
Cultural Ties Arrangement Agreement, launching overall cooperation in
cultural conservation, and industrial development and exchanges. The
central government supported Hong Kong, Macau and Guangdong in jointly and
successfully including the Yueju opera in the UNESCO's Representative List
of Intangible Cultural Heritage of Humanity in 2009; and supported Hong
Kong's successful bid to list its Geopark in Sai Kung as part of the
UNESCO Global Geoparks Network in 2011. It has also supported Hong Kong in
joint production of films with the mainland; since the signing of the
CEPA, Hong Kong and the mainland have worked together in producing 322
films, accounting for 70 percent of mainland's total in such area. The
central government has supported Hong Kong in cooperating with the
mainland in sports personnel exchanges, training and some other aspects.
It invites Hong Kong athletes to take part in National Games and other
events. It has also supported exchanges and cooperation between the two
sides in the development of traditional Chinese medicine, health care
management, notification and prevention and treatment of infectious
diseases, notification and cooperation in cases of public health crises,
etc.
-Supporting the HKSAR government in establishing exchange and cooperation
mechanisms with relevant departments of the central government. The HKSAR
government has established a number of exchange and cooperation mechanisms
at different levels and covering different areas with relevant departments
of the central government to coordinate and promote related work. For
example, the two sides established the CEPA Joint Steering Committee to
oversee the implementation of the CEPA, solve problems, and supplement and
amend the CEPA; and cooperation mechanisms in the areas of entry-and-exit
control, customs, inspection and quarantine, finance, public health,
tourism and other fields, to promote communication, jointly handle
emergencies and combat illegal activities. In addition, the central
government established a Joint Inter-ministerial Conference System for the
Promotion of Qianhai, Nansha and Hengqin, to strengthen guidance,
coordination and services for the development and building of the Qianhai
Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, Nansha New
District in Guangzhou and Hengqin New District in Zhuhai; and the HKSAR
government is a member of this system. These mechanisms have played a
positive role in promoting mutually beneficial cooperation between Hong
Kong and the mainland, and in handling related issues of regional
development and governance of common concern.
4. Ensuring Secure and Stable Supplies of Basic Necessities to the HKSAR
Because of the limitations of its natural environment, Hong Kong mainly
relies on the mainland for the supply of fresh water, vegetables, meat and
other basic necessities. Since the early 1960s, when the mainland opened
"three express trains" to supply Hong Kong with fresh and frozen goods,
and started the Dongjiang-Shenzhen Water Supply Project, the central
government and the relevant local governments on the mainland have made
great efforts to ensure the supply of foodstuff, agricultural and sideline
products, water, electricity, natural gas, etc., to the HKSAR. By the end
of 2013, some 95 percent of live pigs, 100 percent of live cattle, 33
percent of live chicken, 100 percent of freshwater fish, 90 percent of
vegetables and 70 percent or more of flour on the Hong Kong market had
been supplied by the mainland. The first pass yield of foodstuff supplied
by the mainland to Hong Kong has maintained at a fairly high level. In
2013, in accordance with the revised agreement, Guangdong supplied Hong
Kong with 606 million cu m of fresh water. From 1994, the Daya Bay Nuclear
Power Plant started to supply Hong Kong with electricity, and now its
annual power supply accounts for a quarter of the annual power consumption
of Hong Kong. In 2013, the mainland supplied Hong Kong with 2.531 billion
cu m of natural gas.
V. Fully and Accurately Understanding and Implementing the Policy of "One
Country, Two Systems"
As a groundbreaking initiative, "one country, two systems" is a major
issue of governance to the central leadership, and marks a major
historical turning point for Hong Kong and Hong Kong people as well. While
comprehensive progress has been made on all fronts in the HKSAR, the
practice of "one country, two systems" has come to face new circumstances
and new problems. Some people in Hong Kong have yet felt comfortable with
the changes. Still some are even confused or lopsided in their
understanding of "one country, two systems" and the Basic Law. Many wrong
views that are currently rife in Hong Kong concerning its economy, society
and development of its political structure are attributable to this. The
continued practice of "one country, two systems" in Hong Kong requires
that we proceed from the fundamental objectives of maintaining China's
sovereignty, security and development interests and maintaining the
long-term stability and prosperity of Hong Kong to fully and accurately
understand and implement the policy of "one country, two systems," and
holistically combine upholding the principle of "one country" with
respecting the difference of "two systems," maintaining the power of the
central government with ensuring the high degree of autonomy of the HKSAR,
and letting the mainland play its role as a strong supporter of the HKSAR
with improving the competitive edge of Hong Kong. In no circumstance
should we do one thing and neglect the other.
1. Fully and Accurately Understanding the Meaning of "One Country, Two
Systems"
"One country, two systems" is a holistic concept. The "one country" means
that within the PRC, HKSAR is an inseparable part and a local
administrative region directly under China's Central People's Government.
As a unitary state, China's central government has comprehensive
jurisdiction over all local administrative regions, including the HKSAR.
The high degree of autonomy of HKSAR is not an inherent power, but one
that comes solely from the authorization by the central leadership. The
high degree of autonomy of the HKSAR is not full autonomy, nor a
decentralized power. It is the power to run local affairs as authorized by
the central leadership. The high degree of autonomy of HKSAR is subject to
the level of the central leadership's authorization. There is no such
thing called "residual power." With China's Constitution stipulating in
clear-cut terms that the country follows a fundamental system of
socialism, the basic system, core leadership and guiding thought of the
"one country" have been explicitly provided for. The most important thing
to do in upholding the "one country" principle is to maintain China's
sovereignty, security and development interests, and respect the country's
fundamental system and other systems and principles.
The "two systems" means that, within the "one country" the main body of
the country practices socialism, while Hong Kong and some other regions
practice capitalism. The "one country" is the premise and basis of the
"two systems," and the "two systems" is subordinate to and derived from
"one country." But the "two systems" under the "one country" are not on a
par with each other. The fact that the mainland, the main body of the
country, embraces socialism will not change. With that as the premise, and
taking into account the history of Hong Kong and some other regions,
capitalism is allowed to stay on a long-term basis. Therefore, a socialist
system by the mainland is the prerequisite and guarantee for Hong Kong's
practicing capitalism and maintaining its stability and prosperity. For
Hong Kong to retain its capitalist system and enjoy a high degree of
autonomy with "Hong Kong people governing Hong Kong" according to the
Basic Law, it must fully respect the socialist system practiced on the
mainland in keeping with the "one country" principle and, in particular,
the political system and other systems and principles in practice. The
mainland should respect and tolerate the capitalism embraced by Hong Kong
while upholding its socialist system, and draw on the successful
experience of Hong Kong in economic development and social management.
Only by respecting and learning from each other can the "two systems" in
the "one country" coexist harmoniously and achieve common development.
2. Resolutely Safeguarding the Authority of the Constitution of the PRC
and the Basic Law of Hong Kong
The Constitution of the PRC and the Basic Law together constitute the
constitutional basis of the HKSAR. As the fundamental law of the country,
the Constitution, with supreme legal status and the highest legal
authority, is applicable throughout the territory of the People's Republic
of China, including the HKSAR. The Basic Law, which was formulated in
accordance with the Constitution, provides for the system of the HKSAR and
enjoys the legal status as its constitutional law. The systems and
policies of the HKSAR are all based on the provisions of the Basic Law; no
law enacted by the legislature of the HKSAR shall contravene the Basic
Law. All the executive, legislative and judicial practices in the HKSAR
must conform to the Basic Law. And all individuals, groups and
organizations of the HKSAR shall obey the Basic Law. As a national law,
the Basic Law is applicable throughout the country. (more)
Full Text: The Practice of the "One Country, Two Systems" Policy in the
Hong Kong Special Administrative Region (12)
2014-06-10 12:03:51
We should have a full understanding of the provisions of the Basic Law.
All the provisions of the Basic Law underlie the HKSAR system. They are
not isolated from but interrelated with each other. Each of these
provisions must be understood in the context of the Basic Law and the
HKSAR system as a whole. The implementation of the Basic Law shows that if
we comprehend individual provisions of the Basic Law in an isolated way
without taking into account the Basic Law as a whole, stressing one aspect
while ignoring others, ambiguity or even contentious interpretation will
occur, which will severely hamper the implementation of the Basic Law.
Only by comprehensively understanding all the provisions of the Basic Law
can we find that the HKSAR system, along with all its components, is an
integrated whole complementary to each other and that this system plays
the role of protecting the fundamental rights and freedoms of Hong Kong
residents, and ensures the prosperity and stability of Hong Kong.
We should respect and uphold the power of interpretation and amendment of
the Basic Law vested in the NPC and its Standing Committee. The Basic Law
provides that the power of interpretation of the Basic Law shall be vested
in the NPC Standing Committee, and the power of amendment shall be vested
in the NPC. The Basic Law also provides that the courts of the HKSAR, in
the process of adjudication, may give their own interpretation of the
provisions in the Basic Law that are within the limits of the autonomy of
the HKSAR and other provisions. This power of interpretation comes from
the authorization of the NPC Standing Committee. However, if the courts of
the HKSAR, in the process of adjudicating cases, need to interpret the
provisions of the Basic Law concerning affairs which are the
responsibility of the central government, or concerning the relationship
between the central authorities and the HKSAR, and if such interpretation
will affect the judgments on the cases, the courts of the HKSAR shall,
before making their final judgments which are not appealable, seek an
interpretation of the relevant provisions from the NPC Standing Committee
through the Court of Final Appeal of the HKSAR. When the NPC Standing
Committee makes an interpretation of the provisions concerned, the courts
of the HKSAR, in applying those provisions, shall follow the
interpretation of the NPC Standing Committee, which enjoys the same status
with HKSAR laws. The fact that the Standing Committee of the NPC exercises
the power of interpretation of the Basic Law in accordance with the law is
aimed at maintaining the rule of law in Hong Kong, as it oversees HKSAR's
implementation of the Basic Law and protects the high degree of autonomy
of the region.
We should improve the systems and mechanisms related to implementing the
Basic Law, which will help enhance its authority. Since the Basic Law came
into force, a series of systems and mechanisms related to its
implementation have been put in place. For example, in amending the method
for selection of the chief executive of the HKSAR and method for the
formation of the Legislative Council of the HKSAR, a "five-step" legal
procedure has been established and the five steps are: the chief executive
makes a report to the NPC Standing Committee; the NPC Standing Committee
makes a corresponding decision; the Legislative Council endorses the
decision; and the chief executive gives his consent; and the NPC Standing
Committee approves or puts it on the record. Regarding the interpretation
of the Basic Law, the relevant procedures and working mechanisms that have
been established include: the NPC Standing Committee interprets the Law on
its own initiative; the chief executive makes a report to the State
Council, which then submits it to the NPC Standing Committee and asks it
to give an interpretation; or the Court of Final Appeal of the HKSAR seeks
an interpretation of the relevant provisions from the NPC Standing
Committee. Regarding legislation in the HKSAR, the working procedure for
the NPC Standing Committee to put on the record of laws enacted by the
HKSAR has been established; in terms of judicial aid between the mainland
and HKSAR, arrangements have been made in mutual service of judicial
documents, reciprocal recognition and enforcement of arbitration awards of
civil and commercial cases as well as judgments of certain civil and
commercial cases. Regarding accountability the chief executive holds to
the central government, a system is in place for the chief executive to
make reports to the central government on his/her own work. As the
practice of "one country, two systems" continues and the Basic Law is
further implemented, it is imperative to further improve the systems and
mechanisms in relation to the implementation of the Basic Law. In
particular, it is necessary to, with an eye to the lasting peace and order
in Hong Kong, exercise well the power invested in the central government
as prescribed in the Basic Law and see to it that the relationship between
the central government and HKSAR is indeed brought onto a legal and
institutionalized orbit.
3. The Hong Kong People Who Govern Hong Kong Should Above All Be Patriotic
There are lines and criteria to be observed in implementing "Hong Kong
people governing Hong Kong," that is what Deng Xiaoping stressed, Hong
Kong must be governed by the Hong Kong people with patriots as the
mainstay, as loyalty to one's country is the minimum political ethic for
political figures. Under the policy of "one country, two systems," all
those who administrate Hong Kong, including the chief executive, principal
officials, members of the Executive Council and Legislative Council,
judges of the courts at different levels and other judicial personnel,
have on their shoulders the responsibility of correctly understanding and
implementing the Basic Law, of safeguarding the country's sovereignty,
security and development interests, and of ensuring the long-term
prosperity and stability of Hong Kong. In a word, loving the country is
the basic political requirement for Hong Kong's administrators. If they
are not consisted of by patriots as the mainstay or they cannot be loyal
to the country and the HKSAR, the practice of "one country, two systems"
in the HKSAR will deviate from its right direction, making it difficult to
uphold the country's sovereignty, security and development interests, and
putting Hong Kong's stability and prosperity and the wellbeing of its
people in serious jeopardy.
The fact that Hong Kong must be governed by patriots is well grounded in
laws. Both the Constitution and the Basic Law provide for the
establishment of the HKSAR, which works for China's national unification,
territorial integrity and maintaining Hong Kong's long-term stability and
prosperity. In that context, the Basic Law requires that the chief
executive, principal officials, members of the Executive Council,
president and over 80 percent of the members of the Legislative Council,
chief justice of the Court of Final Appeal and chief judge of the High
Court shall be Chinese citizens who are permanent residents of Hong Kong
with no right of abode in any foreign country; that, when assuming office,
the chief executive, principal officials, members of the Executive Council
and Legislative Council, judges of the courts at all levels and other
members of the judiciary in the HKSAR must, in accordance with the law,
swear to uphold the Basic Law and swear allegiance to the HKSAR of the
PRC; and that the chief executive be accountable to the central government
and the HKSAR with respect to implementing the Basic Law. All this is
necessary for displaying sovereignty, ensuring loyalty to the country by
the mainstay of Hong Kong administrators and helping them to subject to
oversight by the central government and Hong Kong society, while taking
their responsibility for the country, the HKSAR and Hong Kong's residents.
4. Firmly Supporting Chief Executive and the HKSAR Government in Governing
Hong Kong in Accordance with the Law
The chief executive, as head of both the HKSAR and its government, is the
prime responsible person for implementing the policy of "one country, two
systems" and the Basic Law in Hong Kong. The central government has always
firmly supported the chief executive and the HKSAR government in governing
Hong Kong in accordance with the law, in rallying the broad sections of
the Hong Kong society for economic development, in taking effective steps
to improve people's livelihood, and in advancing democracy in a gradual
and orderly way to promote inclusiveness, mutual support and harmony.
Developing the economy and improving the people's livelihood are common
aspirations of the Hong Kong people. They serve as an important basis for
solving social problems and ensuring overall stability in the HKSAR, and
also the main task before the chief executive and the HKSAR government in
governing Hong Kong in accordance with the law. At present, Hong Kong is
at a critical juncture of development, with both opportunities and
challenges. It should seize the opportunities and vigorously address the
salient problems in its economic and social development, so as to bolster
and enhance its own competitive edge, maintain a steady economic and
social development, and upgrade the texture of people's life. The mainland
has always been a powerful backing for Hong Kong.
The central government continues its support for the HKSAR in developing a
system of democratic governance that suits the actual conditions in Hong
Kong in a gradual and orderly manner as provided for in the provisions of
the Basic Law. The ultimate aim of selection of the chief executive will
be one by universal suffrage upon nomination by a broadly representative
nominating committee in accordance with democratic procedures and the
election of all the members of the Legislative Council by universal
suffrage. This solemn commitment of the central government has been
incorporated in the Basic Law and the relevant resolutions by the NPC
Standing Committee. The central government is sincerely in favor of moving
Hong Kong's democratic governance forward. The system of universal
suffrage for selecting the chief executive and forming the Legislative
Council must serve the country's sovereignty, security and development
interests, tally with Hong Kong's actual conditions, take into
consideration the interests of all social strata, give expression to the
principle of equal participation, and be conducive to the development of
capitalism in Hong Kong. In particular, the systems must conform to
HKSAR's legal status as a local administrative region directly under the
central government and accord with the Basic Law and relevant resolutions
adopted by the NPC Standing Committee. Furthermore, the chief executive to
be elected by universal suffrage must be a person who loves the country
and Hong Kong. As long as all sectors of the Hong Kong society hold
pragmatic discussions and build a consensus based on the above principles,
these two ultimate goals are sure to be reached.
Hong Kong is a free, open and pluralistic society. It is also an
international commercial metropolis where Chinese and non-Chinese cultures
converge and mingle. Maintaining social harmony and stability serves the
interests of all strata and all sectors of the Hong Kong society as well
as those of outside investors. It is a prerequisite for retaining Hong
Kong's status as an international financial, trade and shipping center.
The central government will continue to encourage the people of Hong Kong
to carry forward their fine traditions of inclusiveness, mutual support
and respect for the rule of law and order. It calls on the Hong Kong
people to seek common ground while reserving differences, be tolerant and
help each other in the fundamental interests of the nation and the general
and long-term interests of Hong Kong, achieve the broadest unity under the
banner of loving the country and Hong Kong with strengthened social
harmony and stability through compromise and mutual assistance.
5. Continuously Promoting Exchanges and Cooperation Between the Mainland
and Hong Kong
Increasingly frequent exchanges and closer cooperation between Hong Kong
and the mainland have expanded channels for common development by
leveraging complementary advantages. Hong Kong has gained access to
enormous space and momentum for development by taking advantage of the
broad market and abundant factor resources of the mainland and
opportunities of China's rapid development. By consolidating and enhancing
its existing advantages, Hong Kong can better play its role in introducing
external investment and talents, in absorbing internationally advanced
technologies and managerial expertise, in serving as a bridge for
implementing China's "go global" strategy, and in helping quicken the
shift of the growth mode on the mainland. In addition, Hong Kong's
experience can be of reference for the mainland to pursue innovative ways
in social and economic management.
As contacts between the mainland and the HKSAR become closer and mutual
understanding between the people deepens, the Hong Kong compatriots are
getting a stronger sense of national identity and commitment. They pay
closer attention to the development of the country and take an active part
in the country's modernization drive as well as public welfare activities,
such as poverty alleviation, education and protection of the rights of
women and children. When the mainland suffered major natural disasters,
the Hong Kong compatriots extended generous and active support for the
rescue and relief work and post-disaster reconstruction. These fully
demonstrate the strong ties of blood and affection between the people on
the mainland and the Hong Kong compatriots.
The central government will continue to support the HKSAR government in
forming a closer working relationship with relevant government departments
at both the central and local levels, support the Hong Kong compatriots in
having more exchanges with people on the mainland, and support Hong Kong
in playing its unique role in the country's endeavor of comprehensive
reform and opening up. The central government encourages Hong Kong to
carry out broader and deeper exchanges and cooperation with the mainland,
and make concerted efforts with the mainland to build the common home of
the Chinese nation.
Conclusion
The implementation of the principle of "one country, two systems" in the
HKSAR has achieved widely recognized success. This fully proves that "one
country, two systems" is not only the best solution to the Hong Kong
question left over from history but also the best institutional
arrangement for the long-term prosperity and stability of Hong Kong after
its return to the motherland. Firmly advancing the cause of "one country,
two systems" is the common wish of all the Chinese people, the Hong Kong
compatriots included, and is in the fundamental interests of the country
and people, the general and long-term interests of Hong Kong and the
interests of foreign investors.
The endeavor to further the practice of "one country, two systems"
requires both a comprehensive and accurate understanding and
implementation of the policy to ensure that the practice moves forward on
the right track and proactive and effective response to the difficulties
and challenges confronting Hong Kong in its development. In the face of
profound adjustments and changes in the economic environment both within
and outside the region, Hong Kong needs to continuously enhance its
competitiveness. Some deep-seated problems that have built up over a long
period of time are becoming more conspicuous and need to be solved by
pooling the efforts of all sectors. The deepening exchanges and
cooperation between the HKSAR and the mainland call for better
communication and coordination, and the concerns of the people should be
properly addressed. Meanwhile, it is necessary to stay alert to the
attempt of outside forces to use Hong Kong to interfere in China's
domestic affairs, and prevent and repel the attempt made by a very small
number of people who act in collusion with outside forces to interfere
with the implementation of "one country, two systems" in Hong Kong. A
proper handling of these issues and further implementation of "one
country, two systems" in Hong Kong will further demonstrate the strong
vitality of the policy of "one country, two systems."
Now, people all over the country are working hard with full confidence
towards the "two centenary goals" - to complete the building of a
moderately prosperous society in all respects when the Communist Party of
China celebrates its centenary in 2021, and to turn China into a modern
socialist country that is prosperous, strong, democratic, culturally
advanced and harmonious when the PRC marks its centenary in 2049 - as well
as the Chinese dream of the great rejuvenation of the Chinese nation.
Continuously enriching and developing the practice of "one country, two
systems" in the HKSAR and maintaining long-term prosperity and stability
in the region are integral part of the Chinese dream. It is also a
necessary requirement for improving and developing socialism with Chinese
characteristics and promoting the modernization of the national governance
system and governing capability. The central government will continue to
work with the HKSAR government and the Hong Kong compatriots to fully and
faithfully implement the principle of "one country, two systems" and the
Basic Law, so as to further the development of all undertakings in Hong
Kong. We are convinced that the HKSAR will advance steadily forward under
the principle of "one country, two systems" and the Basic Law, and work
hand in hand with the mainland toward a better future for the Chinese
nation.
Appendix
I. Statistics of Hong Kong's Economic and Social Development
1. The Gross Regional Product (GRP) of Hong Kong rose from HK$1.37
trillion in 1997 to HK$2.12 trillion in 2013, an average annual growth
rate of 3.4 percent.
2. The fiscal reserves of the HKSAR government had increased by 65.2
percent from HK$457.5 billion at the end of 1997 to HK$755.7 billion at
the end of March 2014.
3. Hong Kong's foreign exchange reserves had grown by 3.35 times from
US$92.8 billion at the end of 1997 to US$311.2 billion by the end of 2013.
4. According to the 2013 statistics released by the International
Monetary Fund (IMF), Hong Kong's GRP and per-capita GRP respectively
ranked 35th and 7th in the world, as calculated by purchasing power parity
(PPP).
5. As Hong Kong is a leading international banking center, 73 of the
world's top 100 banks operate in Hong Kong.
6. As Asia's second-largest and the world's sixth-largest securities
market, Hong Kong recorded a market capitalization of HK$24.04 trillion by
the end of 2013. IPO funds raised by the Hong Kong Stock Exchange in 2013
totaled HK$166.5 billion, making Hong Kong the second-largest IPO market
in the world.
7. Hong Kong's foreign exchange market scored an average daily
turnover of US$274.6 billion in 2013, making it the fifth-largest foreign
exchange market in the world.
8. According to the 2012 Financial Development Report released by the
World Economic Forum in October 2012, Hong Kong's financial development
index ranked top worldwide. Hong Kong ranked third in the Global Financial
Centres Index published by the City of London Corporation in September
2013.
9. As the world's ninth-largest trading economy, Hong Kong is home to
approximately 100,000 import and export companies, which trade with almost
every country and region in the world.
10. Hong Kong's external merchandise trade grew by a factor of 2.48
from HK$3.07 trillion in 1997 to HK$7.62 trillion in 2013.
11. Hong Kong is one of the largest recipients of foreign direct
investment (FDI). The World Investment Report 2013 released by the United
Nations Conference on Trade and Development (UNCTAD) shows that Hong Kong
is the world's third-largest recipient of FDI. By the end of 2013, the
total number of overseas companies registered in Hong Kong reached 9,258,
an 83 percent increase over 1997. By June 2013, 1,379 foreign-funded
companies in Hong Kong served as regional headquarters and 2,456 foreign
representative offices served as regional offices, recording 52.7 percent
and 52.5 percent increase respectively over that at the end of 1997.
12. As one of the largest container ports in the world, Hong Kong
handled 22,288,000 ISO containers in 2013, 52.9 percent higher than in
1997.
13. Hong Kong is the world's fourth-largest ship registry. By the end
of 2013, Hong Kong-registered ships numbered 2,327, totaling 86.43 million
dwt.
14. The Hong Kong International Airport, from which more than 100
airlines operate flights, is the world's fifth-busiest passenger airport
and has the world's most active air cargo operation. Its passenger traffic
and cargo throughput in 2013 were 2.18 times and 2.53 times the 1998
figures, respectively.
15. Hong Kong ranked third among over 660 international port cities
or regions in the 2013 Global International Shipping Center Index.
16. The HKSAR government's 2014-2015 budget recurrent expenditure on
education is HK$67.13 billion, 21.8 percent of the government's total
recurrent expenditure. The budget for expenditure on education is HK$75.37
billion, accounting for as high as 18.3 percent of the government's total
expenditure budget and ranking first in all budget expenditure items. Hong
Kong has been providing 12-year free education through public schools
starting from the 2008/09 school year.
17. Since Hong Kong returned to China in 1997, institutions of higher
learning that award local degrees have increased from 12 to 17, of which
eight are funded by the government. The University of Hong Kong and the
Hong Kong University of Science and Technology were among the top 10 in
the Asia University Rankings released by Times Higher Education in 2013.
The University of Hong Kong was ranked 43rd in the Times Higher Education
World University Rankings 2013/14.
18. From the second quarter of 2000 to the third quarter of 2013, the
percentage of people with post-secondary education in the entire employed
population rose from 23.7 percent to 35.1 percent, and the percentage of
those with higher education in the employed population increased from 14.5
percent to 26 percent. Hong Kong students remained high in the 2012
rankings of the Programme for International Student Assessment (PISA).
Hong Kong ranked third in the Global Index of Cognitive Skills and
Educational Attainment published by education company Pearson in 2012.
19. In the 2014/15 fiscal year, the HKSAR government's budget
expenditure on medical and health care reaches HK$52.4 billion, accounting
for 17 percent of the government's recurrent expenditure.
20. By the end of 2012, all types of health facilities in Hong Kong
had a total of 35,500 beds. Public medical facilities with 90 percent of
their funding coming from the government comprise 38 public hospitals, 48
specialist clinics and 73 general out-patient clinics, with 64,000
employees and 27,000 beds. They provide 90 percent of the in-patient
services and 30 percent of the out-patient services of Hong Kong.
21. Hong Kong's infant mortality rate, dropping to 1.6 per thousand
in 2013 from 4 per thousand in 1997, is one of the lowest in the world.
Hong Kong also enjoys one of the highest life expectancies in the world -
80.9 for men and 86.6 for women.
22. By June 2013, Hong Kong had, as a member of a Chinese government
delegation or in other appropriate capacities, participated in activities
of 41 international inter-governmental organizations limited to states.
Among these organizations were the International Monetary Fund, World
Bank, International Civil Aviation Organization, Food and Agriculture
Organization of the United Nations, and International Criminal Police
Organization. Hong Kong joined 37 international inter-governmental
organizations not limited to states, including the World Trade
Organization, Asia-Pacific Economic Cooperation and World Meteorological
Organization. Hong Kong had attended over 1,400 international conferences
as a member of Chinese government delegations or in other appropriate
capacities and over 20,000 international conferences not limited to states
under the name of Hong Kong, China.
23. Each year, the HKSAR hosts an average of over 100 visits by
foreign senior government officials and influential personages of academic
circles and think tanks from all over the world. Many heads of state and
heads of government have paid visits to or attended international
conferences in Hong Kong. Hong Kong has hosted or co-hosted over 1,000
international conferences, such as the annual meetings of the World Bank
Group and IMF, the Sixth WTO Ministerial Meeting, Telecom World of the
International Telecommunication Union, Diplomatic Conference of the
International Maritime Organization, Asian Regional Workshop of the World
Intellectual Property Organization, and Asian-Pacific Postal Union
Executive Council Meeting.
24. The HKSAR has signed visa waiver agreements with 42 countries,
and 150 countries and regions have provided visa-free entry or visa upon
arrival for HKSAR passport holders.
25. The HKSAR has signed civil air services agreements and civil air
services transit agreements with 67 countries, double taxation avoidance
agreements with 35 countries and regions, investment promotion and
protection agreements with 17 countries, legal assistance in criminal
matters agreements with 30 countries, transfer of fugitives agreements
with 19 countries, and transfer of sentenced persons agreements with 13
countries.
26. The HKSAR government has established 11 economic and trade
offices in Geneva, Brussels, London, Toronto, Tokyo, Singapore, Sydney,
Washington D.C., New York, San Francisco and Berlin to promote Hong Kong's
economic, trade, investment and public relations with relevant countries
and regions.
27. There are 66 foreign consulates-general and 73 honorary consuls
in Hong Kong. The European Commission, Bank for International Settlements,
IMF, UN High Commissioner for Refugees, International Finance Corporation,
and Hague Conference on Private International Law have offices in Hong
Kong.
II. Statistics of Exchanges and Cooperation Between the Mainland and Hong
Kong
1. The mainland is the largest trading partner of Hong Kong.
According to Hong Kong statistics, in 2013 the trade volume between Hong
Kong and the mainland reached HK$3.8913 trillion, 3.49 times over 1997 and
accounting for 51.1 percent of Hong Kong's external trade.
2. Hong Kong is the most important trading partner of the mainland
and one of the mainland's major export markets. According to the data from
the General Administration of Customs, the mainland's exports to Hong Kong
in 2013 totaled US$384.79 billion, constituting 17.4 percent of the
mainland's total exports.
3. The mainland is the largest source of overseas direct investment
for Hong Kong. By the end of 2013, direct investment from the mainland to
Hong Kong had exceeded US$358.8 billion, accounting for nearly 60 percent
of the mainland's total outbound direct investment.
4. Hong Kong is also the mainland's largest source of overseas direct
investment. According to the data from the Ministry of Commerce, the
mainland had approved nearly 360,000 projects with Hong Kong investment by
the end of 2013, with US$665.67 billion paid-in investment, accounting for
47.7 percent of the total overseas investment in the mainland. Hong Kong
is the largest recipient of the mainland's overseas investment as well as
the mainland's largest financing center. By the end of 2013, the
mainland's non-financial direct investment in Hong Kong had reached
US$338.669 billion, taking up 59 percent of the mainland's total outbound
non-financial direct investment.
5. By the end of 2013, the number of mainland enterprises listed in
Hong Kong had reached 797, accounting for 48.5 percent of the total number
of companies listed in Hong Kong. Their total market value had reached
HK$13.7 trillion, accounting for 56.9 percent of the total value of the
Hong Kong stock market.
6. By the end of 2013, RMB deposits and depository receipts in Hong
Kong amounted to RMB1.05 trillion, an increase of 46 percent over 2012.
RMB loans totaled RMB115.6 billion, and outstanding RMB bonds totaled
RMB310 billion.
7. The Mainland/Hong Kong Science and Technology Co-operation
Committee has, with the support of institutions of higher learning,
research institutes and Hong Kong Science and Technology Parks,
established 16 Partner State Key Laboratories, one Hong Kong branch of the
Chinese National Engineering Research Center, and two National High-tech
Industrialization Bases in Hong Kong. The Committee supports Hong Kong's
institutions of higher learning in setting up research institutes in
Shenzhen, Hong Kong's neighboring city on the mainland, and encourages
Hong Kong's participation in key national science and technology programs.
8. Since 2010, four projects under the national 973 Program have been
undertaken by Hong Kong's science and technology professionals and
institutes, and have received total research and development funding of
RMB160 million.
9. China's Chang'e-3 lunar lander and its Yutu rover landed on the
moon in December 2013. The camera pointing system on Yutu was developed by
experts from the Hong Kong Polytechnic University.
10. By the end of 2013, the number of academicians of the Chinese
Academy of Sciences and the Chinese Academy of Engineering from Hong Kong
had reached 39, including foreign nationals. In addition, 88 Hong Kong
scientists had won 44 state science and technology awards, including the
State Natural Science Award, State Scientific and Technological Progress
Award and State Technological Invention Award.
11. Mainland students studying at institutions of higher learning in
Hong Kong numbered 22,000 in the 2012/13 academic year. By October 2013,
the number of Hong Kong students studying at institutions of higher
learning in the mainland topped 14,000.
12. The University of Hong Kong, the Chinese University of Hong Kong,
Hong Kong Polytechnic University, Hong Kong Baptist University and City
University of Hong Kong have worked with mainland universities in jointly
holding academic programs and running institutions of higher learning.
Universities in cities and provinces of Guangdong, Beijing, Shanghai,
Zhejiang, and Fujian on the mainland have established over 400 pairs of
sister-school partnerships with Hong Kong universities.
13. In 2009, Yueju opera, jointly nominated by Hong Kong, Macau and
Guangdong Province, was officially inscribed on UNESCO's Representative
List of the Intangible Cultural Heritage of Humanity.
14. In September 2011, with the support of the central government,
Hong Kong Global Geopark was listed by UNESCO as part of its Global
Geoparks Network.
15. Since the mainland and Hong Kong signed the Closer Economic
Partnership Arrangement (CEPA) in 2003, Hong Kong and the mainland have
worked together in producing 322 films, accounting for 70 percent of
mainland's total in such area. Moreover, 61 of the 322 co-productions
topped RMB100 million each in box office receipts.
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