British administration ruled Hong Kong for over 150 years, until it became a Special Administrative Region (SAR) of the People’s Republic of China in 1997.
Even though Hong Kong is a special administrative region of the People’s Republic of China (PRC) and runs under the “One Country, Two Systems” policy, they maintain much independence. The Hong Kong Government is responsible for the administration of Hong Kong, oversees the affairs of Hong Kong and is financially independent from the Central People’s Government in Beijing. The Chief Executive has acted as the head of government since 1997 and they report to the Central People’s Government of the PRC.
Hong Kong has one of the worlds’ freest economies, in which, under both the British and Chinese rule, the government’s only occasionally intervened. The Hong Kong Government has stayed away from partaking in industry and commerce for profit, by raising revenue from taxation and selling land.
Hong Kong has an ideal geographical location and superb opportunities for trade. In 2001, Hong Kong ranked at number ten of the world’s largest trading entities. Due to the lack of natural resources much of the exports are “re-exports,” of products made outside of Hong Kong |