Anthony Lam and Dr. Bryan Sudweeks, Business Management
Asia suffered a devastating blow to its economy in February of 1997 with the Asian Financial Crisis. The Asian Tiger economies fell to currency speculation and bank debt, beginning with Thailand. Hong Kong, one of the premier business centers in Southeast Asia, was also adversely affected through trade effects. That same year, on July 1, Hong Kong ended its ninety-nine year term as a colony of the United Kingdom and returned to Chinese rule. The “one country, two systems” policy was put in place to ensure Hong Kong’s continued success. Hong Kong would remain a democracy but be part of a communist country. The major concern at this time was that Chinese rule would undermine Hong Kong’s vibrant economy.
The first task in this analysis of Hong Kong was to look at economic indicators, such as gross domestic product (GDP), balance of trade, and degrees of freedom. These figures suggested that Hong Kong has maintained steady growth for at least the past twenty years, even outpacing the United States. Hong Kong’s GDP remains among the highest in Asia, and its recovery from the Asian Crisis was swifter than most neighboring countries. Hong Kong is consistently ranked as the most economically free country in the world.
Next, I found that Hong Kong’s economic development centers on a few factors. Hong Kong has been a leading international trading and financial center. It has an advanced economy, and its stock market is the second largest in Asia, behind Japan. In addition, Hong Kong is Southeast Asia’s largest trading hub. Hong Kong has the busiest container port and air cargo terminal in the world.
Through this research, it seems that Chinese sovereignty over Hong Kong will continue to keep the Pearl of the Orient at the forefront of the world’s leading economies. The “one country, two systems” policy has been a success thus far. Increasing accessibility of Chinese goods from the mainland will only increase Hong Kong’s economic development. Trade through Hong Kong will increase as China’s economy opens itself to the world. The Special Administrative Region of Hong Kong will be China’s future trading hub.
The final part of my research involved going to Hong Kong to observe first-hand the effects of the turnover. As my plane flew toward Hong Kong, the news was announced that Beijing had won the bid for the summer Olympics. Perhaps this would set the stage for the current trend for support for the “one country, two systems” policy of China toward Hong Kong.
At first glance, nothing was different in Hong Kong, besides Chinese flags and green mailboxes (instead of red). Many government department names were changed, but the functions remained the same. Hong Kong continues its ambitious construction program, adding to the airport, reclaiming land, and raising numerous buildings. Disneyland has begun construction, and unemployment remains low.
Thirty people were interviewed, ranging from secondary school students to business professionals to retired senior citizens. Education levels ranged from grade school to postgraduate levels. When asked, each person replied that communist rule had done little to change everyday life. One complaint of the new Hong Kong SAR government was that too many mainlanders were allowed to enter the city (approximately 130 each day). Of course, the added freedom of movement for Hong Kong citizens into the mainland caused many to move to the neighboring city of Shen Zhen, just five minutes away from Hong Kong.
Like it or not, almost all people interviewed agreed that Hong Kong’s future is inseparably tied to China’s. A couple years ago, many people complained about the freedoms lost under Chinese rule. These days, however, China is one of the few countries that has avoided the global slowdown. Those same people who complained a couple years ago are now relieved to fall under China’s economic protection. Many did not know about the impacts of the WTO, but they do know that if China does well, then Hong Kong will too.
Conclusions from my research show that China will be a positive influence on Hong Kong’s future economic development. Findings were very encouraging, as well as public opinion. Work with the economic analysis was quite frustrating since numbers were everything, but I know how important statistics are. Keeping the scope of the statistics low was also quite difficult, especially when comparing different countries. Working with local Hong Kong people was the most valuable part of this research. I made a lot of friends, and I know the communications skills I learned will be used in whatever career I face.
This was a great learning experience for me, as I am entering my final year at BYU. I plan to pursue a career in medicine and use my knowledge to help people on an international level. The findings from my research will help me to decide how best to help those in need in Asia and other parts of the world.