Background: Occupied by the UK in 1841 Hong Kong was formally ceded by China the following year; various adjacent lands were added later in the 19th century. Pursuant to an agreement signed by China and the UK on 19 December 1984 Hong Kong became the Hong Kong Special Administrative Region (SAR) of China on 1 July 1997. In this agreement China has promised that under its 'one country two systems' formula China's socialist economic system will not be practiced in Hong Kong and that Hong Kong will enjoy a high degree of autonomy in all matters except foreign and defense affairs for the next 50 years.
Suffrage: direct election 18 years of age; universal for permanent residents living in the territory of Hong Kong for the past seven years; indirect election limited to about 100,000 members of functional constituencies and an 800-member election committee drawn from broad regional groupings municipal organizations and central government bodies
Legislative branch: unicameral Legislative Council or LEGCO (60 seats; 30 indirectly elected by functional constituencies 20 elected by popular vote and 10 elected by an 800-member election committee; members serve four-year terms)
Judicial branch: The Court of Final Appeal in the Hong Kong Special Administrative Region
Political parties and leaders: Association for Democracy and People's Livelihood [Frederick FUNG Kin-kee chairman]; Citizens Party [Christine LOH Kung-wai chairwoman]; Democratic Alliance for the Betterment of Hong Kong [Jasper TSANG Yok-sing chairman]; Democratic Party [Martin LEE Chu-ming chairman]; Frontier Party [Emily LAU Wai-hing chairwoman]; Hong Kong Progressive Alliance [Ambrose LAU Hon-chuen]; Liberal Party [James TIEN Pei-chun chairman]
Economy overview: Hong Kong has a bustling free market economy highly dependent on international trade. Natural resources are limited and food and raw materials must be imported. Indeed imports and exports including reexports each exceed GDP in dollar value. Even before Hong Kong reverted to Chinese administration on 1 July 1997 it had extensive trade and investment ties with China. Per capita GDP compares with the level in the four big countries of Western Europe. GDP growth averaged a strong 5% in 1989-97. The widespread Asian economic difficulties in 1998 hit this trade-dependent economy quite hard with GDP down 5%. The economy is recovering with growth of 1.8% in 1999 to be followed by projected growth of 3.7% in 2000.
Labor force: 3.36 million (1998 est.) By occupation: wholesale and retail trade restaurants and hotels 31.9% social services 9.9% manufacturing 9.2% financing insurance and real estate 13.1% transport and communications 5.7% construction 2.6% other 27.6% (October 1998)
Exports: $169.98 billion (including reexports; f.o.b. 1999 est.) Commodities: clothing textiles footwear electrical appliances watches and clocks toys Partners: China 34% US 23% Japan 5% Germany 4% UK 4% Singapore 2% (1998)
Imports: $174.4 billion (c.i.f. 1999) Commodities: foodstuffs transport equipment raw materials semimanufactures petroleum; a large share is reexported Partners: China 41% Japan 13% US 8% Taiwan 7% South Korea 5% Singapore 4% (1998)
Exchange rates: Hong Kong dollars (HK$) per US$ - 7.7780 (January 2000) 7.7575 (1999) 7.7453 (1998) 7.7427 (1997) 7.730 (1996) 7.800 (1995); note - Hong Kong became a special administrative region of China on 1 July 1997; before then linked to the US dollar at the rate of about 7.8 HK$ per 1 US$