The Business Environment in Hong Kong

NTRODUCTION In 1989 China passed through another cycle of abrupt economy correction and a severe crack down on political dissidents in Tienanmen Square. Some people were confused over these issues and concluded that for a Hong Kong economically dependent on an ailing economy managed by officials wearing Chinese jackboots, the future was dim (Mann 1990). This has led some people mistaken that Hong Kong might crumble in the near future. On July 1st, 1997 Hong Kong was returned to Chinese sovereignty and this territory is now called Hong Kong Special Administrative Region (HKSAR) of China with a high degree of autonomy. The Joint Declaration of “one country, two systems”, was registered at the United Nations in 1984. Hong Kong remained a free port, a free trader and level playing field for business. HKSAR is empowered to conduct its own external economic relations and enjoy a separate membership of the World Trade Organization, APEC and other international economic organizations. The Joint Declaration also states that Hong Kong is to be ruled by Hong Kong people (HKSAR 1997). HKSAR has a great challenge ahead; which is to maintain and prove that HKSAR will still be a competitive place for business and restoring confidence of existing and potential foreign investors.