IPP Review
(published on 12 Nov 2018)
Overview
It is more than 21 years since British Hong Kong became the Hong Kong Special Administrative Region (HKSAR) of the People’s Republic of China (PRC). Much has happened that is positive since 1997. At the same time there have been recurring political incidents and stand-offs which have produced a series of severe policy log-jams and bred anxiety among the people of Hong Kong. There is a belief that Hong Kong is “stuck” and unable to advance.
Could the HKSAR see a positive future within China? We recently published a short book, with Abbreviated Press in Hong Kong, entitled, No Third Person: Rewriting the Hong Kong Story, to address this question. We feel that there remains a need for a further, more thorough discussion about Hong Kong’s future. We are grateful to the IPP Review for enabling us to publish this extended discussion: Hong Kong in China – with the generous agreement of Abbreviated Press. (Sections within Hong Kong in China repeat text and arguments found in No Third Party.)
The last British Governor of Hong Kong, Chris Patten noted, in 1996, that "The world should want China to succeed as it continues its brave economic revolution." We agreed with that view then and we agree with it today. In this work, serialized in three parts in the IPP Review, we explain why Hong Kong remains exceptionally well placed to continue to shape its own positive future, within China, just as it has done, with such remarkable success, in the past.
Part 1 of Hong Kong in China provides a general introduction of the historical background of Hong Kong seen from British and Chinese perspectives over the last two centuries. It also explains the constitutional and legal structure of Hong Kong’s reversion to Chinese sovereignty and considers how this regime has operated when placed under stress. Part 2 sets out Hong Kong’s economic fundamentals and also reviews the geo-political stresses affecting the Hong Kong – mainland relationship. Part 3 investigates how Hong Kong can get unstuck and – building on this – how Hong Kong can construct its new narrative – the story of Hong Kong in China.
I. Introduction
A robust, well explained narrative can join the past and the future. Such stories can motivate a community to believe and to take action. A good story can even persuade others that someone or something is special and, even without having a direct stake in what happens, they may be convinced to wish those who are directly involved all the best in what they are trying to achieve.
Hong Kong had a good story in the run-up to 1997 that was created by the British. The colony’s indomitable people worked hard, and they might triumph even under illiberal Chinese rule because they had been well-tutored under a benign Britain, which ruled Hong Kong relying on a western form of authoritarian legality. Hong Kong people were cosmopolitan and free to do what they wanted, especially in the pursuit of making money under a capitalist environment that was protected by a common law-based legal system.
The People’s Republic of China had its own story about Hong Kong. Britain snatched it from a weak China in the 19th century and the reunification of Hong Kong with the motherland in 1997 signified the end of a long period of humiliation. Hong Kong would enjoy a very special status in China and it would be just as politically stable and economically prosperous as before because of China’s wise and pragmatic ‘one country, two systems’ policy... Click here to read the full text.
(published on 9 Dec 2018)
Overview
Can Hong Kong envisage a progressive future within China? We recently published a short book, with Abbreviated Press in Hong Kong, entitled, No Third Person: Rewriting the Hong Kong Story, to address this question. We feel that there remains a need for a further, more thorough discussion about Hong Kong’s future. We are grateful to the IPP Review for enabling us to publish this extended discussion, Hong Kong in China, with the generous agreement of Abbreviated Press.(Sections within Hong Kong in China repeat text and arguments found in No Third Party.)
Part 1 of Hong Kong in China was published by the IPP Review on November 12, 2018. Part 1 provided a general introduction of the historical background of Hong Kong seen from British and Chinese perspectives over the last two centuries. It also explained the constitutional and legal structure of Hong Kong’s reversion to Chinese sovereignty and considered how this regime has operated when placed under stress.
Part 2 now sets out Hong Kong’s economic fundamentals and also reviews the geo-political stresses affecting the Hong Kong-mainland relationship. Part 3 will investigate how Hong Kong can get unstuck and – building on this – how Hong Kong can construct its new narrative – the story of Hong Kong in China.
VI. The Bygone British Hong Kong Arbitrage
The ability of autocratic regimes to compete with economic performance of
liberal democracies is a particularly important and novel development.
Yasha Mounk and Roberto Stefan Foa
Hong Kong people’s collective political memory has to do with China’s post-1949 history and their own treasured, free lifestyle in Hong Kong. Hong Kong has been a place of refuge, where the people were able to arbitrage the difficult circumstances on the mainland while residing in the British-held colony. Pre-1997 Hong Kong was a political anomaly but was considered a “miracle.” After 1997, Hong Kong people must reconcile that they are Chinese nationals and part of the People’s Republic of China. Their future is hitched to that of the nation and they can no longer arbitrage in the way they did before.
Collective memories
Accepting that China has resumed full sovereign power over Hong Kong has not been easy for many Hong Kong people. Older generations retain vivid memories of the 1960s when the city was rocked by the Cultural Revolution on the mainland and deadly confrontation seeped across the border for some months.
That period fundamentally turned them off the Chinese Communist Party because of the senseless violence and the fact was China was economically backward and the people poor. Revolution was not going to do anything to improve the country. Tens of thousands of people, mostly from nearby Guangdong, took enormous risks to escape to Hong Kong because it was in British hands. Between 1965 and 1975, the population rose from 3.59 million to 4.46 million, an increase of over 870,000 people.
Hong Kong was not only safe for the refugees but economically attractive. From the 1950s, Hong Kong had developed a robust manufacturing economy. Growth in the 1960s had much to do with producing labour-intensive consumer goods for export to the West. The ‘Made in Hong Kong’ label was well-known in Western markets.
While revolution engulfed the mainland, Hong Kong prospered from trade and commerce. Hong Kong produced movies, songs, and entertainment which were trendsetters in Asia. There was plenty of work and many money-making opportunities for everyone in the flourishing colony. Hong Kong was exciting and innovative. The West was where Hong Kong people saw promise – not the mainland.
East-West geopolitics
Hong Kong’s arbitrage was possible because of the on-going East-West struggle, embodied by the Cold War, where two contending political ideologies clashed. Each of the two most powerful nations – the Soviet Union and the United States – had their sphere of influence. Like the Soviet Union, China practised communism and was thus part of the glum communist bloc. The United States was capitalist, democratic and vibrant – its values and system appeared to possess the political DNA that made a country successful. ... Click here to read the full text.
(published on 7 Jan 2019)
Overview
Can Hong Kong envisage a progressive future within China? We recently published a short book, with Abbreviated Press in Hong Kong, entitled, No Third Person: Rewriting the Hong Kong Story, to address this question. We are grateful to the IPP Review for enabling us to publish this extended discussion: Hong Kong in China – with the generous agreement of Abbreviated Press. (Sections within Hong Kong in China repeat text and arguments found in No Third Party.)
Part 1 of Hong Kong in China provided a general introduction of the historical background of Hong Kong seen from British and Chinese perspectives over the last two centuries. It also explained the constitutional and legal structure of Hong Kong’s reversion to Chinese sovereignty and considers how this regime has operated when placed under stress. Part 2 of Hong Kong in China sets out Hong Kong’s economic fundamentals and also reviewed the geo-political stresses affecting the Hong Kong-mainland relationship.
Part 3 investigates how Hong Kong can get unstuck and – building on this – how Hong Kong can construct its new narrative – the story of Hong Kong in China.
VIII. Getting “Unstuck”
The previous British Hong Kong story was a good one but is now dated. Today, earlier assumptions need to be examined and reviewed carefully. Nostalgia cannot help Hong Kong deal with the current, swiftly changing world. As Hong Kong orients itself towards the future, it needs to reinvigorate its collective consciousness. Deep down Hong Kong people know this. They must find the courage to admit to a new reality in its relations with the People’s Republic and find the voice to weave a new strategy and story that make sense.
To put it simply and bluntly – Hong Kong must first and foremost accept the People’s Republic for what it is today and work towards national betterment. To ‘accept’ does not mean total approval of every aspect of the nation but it does require acknowledgement that the mainland is what it is, and recognise that as the starting point rather than wish it to be something else or to refute it. To advance Hong Kong’s cause as a progressive, well-governed society and a liveable city, Hong Kong does not need to challenge Beijing’s authority. This ought to be the starting point of creating a new story.
Hong Kong is most useful to itself and the nation when it can demonstrate the highest competence in specific pursuits within both the public and private spheres. The danger Hong Kong faces is that the old arbitrage has disappeared and if it does not recreate itself to make the most of the exceptional opportunities it enjoys as a Special Administrative Region (SAR) within China, it will get squeezed out by much harder working neighbours both on the mainland and in Asia. This is not a time to be complacent and even less for feeling superior to others.
Hong Kong should take stock of its many constitutional, economic, social and political assets to see how each of them can help in configuring a new story fit to guide Hong Kong with fresh clarity and purpose. There are many stakeholders who have parts to play.
Being inside China
A major part of the problem is Hong Kong has yet to reconcile itself fully to being at home, within the People’s Republic of China (PRC). There are many reasons for this and it is not our intention to discuss them here in any detail. However, we can say, very broadly, that the reasons are tied to family history, personal experiences and values, as well as fear and anxiety about the loss of Hong Kong’s freedoms.
Collective reconciliation is required. To secure this, however, reconciliation has to take place on an individual basis. This is a key issue for Hong Kong people to reflect upon over time and in detail. It is particularly important for the younger generations since some of them appear to have the greatest difficulty with reconciling that Hong Kong is a part of China and that they are Chinese nationals. We should be clear, too, that there is not a single, all-encompassing younger generationin Hong Kong uniformly beset by reconciliation malaise, notwithstanding continuing implicit and explicit suggestions to the contrary. As with older generations, there is a spectrum of views ranging from an easy feeling of about being part of China to rejecting the mainland.
Hong Kong people are extremely privileged in enjoying freedoms unavailable on the mainland. It is understandable that Hong Kong people have the greatest difficulty with human rights issues with respect to the mainland. Greater freedom for all is a legitimate aspiration but Hong Kong needs to give careful consideration to how it might be pursued over time.
Hong Kong should think strategically about how it can position itself as a part of China... Click here to read the full text.
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