How Chinese rule has changed Hong Kong since 1997

As Xi Jinping visits the city, he faces questions on handover deal commitment and human rights

On July 1, 1997, the Chinese national flag was raised over Hong Kong for the first time, ending 156 years of British rule and beginning an unusual experiment in democracy by Beijing. As President Xi Jinping visits the city for the 20th anniversary, he’s facing new questions about China’s commitment to the handover deal and human rights in general.

Why is 20 years a big deal?

Every year the anniversary generates emotional responses from both celebrants of China’s post-colonial resurgence and protesters worried about Hong Kong’s future as a beacon of capitalism, free speech and the rule of law. This year carries special significance because China only promised to leave Hong Kong’s “high degree of autonomy” intact for 50 years. In 2022, when the city’s incoming chief executive Carrie Lam’s term expires, that promise will have more days behind it than ahead of it.

What will happen July 1?

Xi is making his first visit to Hong Kong since taking power in 2012. It’s the first presidential inspection tour since pro-democracy protests shut down parts of the city in 2014 and helped spawn a more confrontational independence movement. 

Why is Hong Kong so important?

Hong Kong’s status as a top financial centre rests in part upon its reputation as a safe place to put your people and investments. More broadly, the city shows how well Beijing adheres to agreements such as the Sino-British Joint Declaration, which in 1984 set out the terms of Hong Kong’s return. 

What exactly was Hong Kong promised?

Hong Kong’s charter, known as the Basic Law, preserves British common law and other colonial tenets such as property rights, free speech and an independent judiciary under a framework called “one country, two systems.” 

Has China kept its side of the bargain?

Two decades on, Hong Kong’s leader is still chosen by a committee of 1,200 political insiders. China’s most significant attempt to enact the universal suffrage clause failed in the legislature in 2015 after months of protests by democracy advocates, who argued the take-it-or-leave-it proposal would ensure only proven Beijing loyalists became candidates.

Where does Hong Kong go from here?

Just 30 years before China’s guarantees expire, there’s little prospect of a political breakthrough between Hong Kong’s feuding factions. A continued hiatus may begin to weigh on long-term financial decisions as the 2047 deadline approaches. While Lam, the next chief executive, has promised to heal divisions, she faces pressure from Beijing to take a hard line and resolve lingering political debates. In April, the mainland’s top legal affairs official in Hong Kong warned that the government would consider scrapping “one country, two systems” if the concept became a threat to China.