The second essential element of Hong Kong way of life is its free
enterprise economic system. Hong Kong is one of the world's most
impressive economic success stories. Starting in 1945 with a
devastated economy and refugee population, with no natural resources other than the innate intelligence and drive of its people, Hong
Kong has achieved a complete transformation of its economy and
society. Hong Kong is now a thriving, cosmopolitan city with a
population twice the size of Singapore. Despite its relatively small size, Hong Kong has become a financial and economic focal
point of the Asia/Pacific Rim region, one of the most prosperous and fastest growing regions of the world, and the world's tenth largest
trading economy. A huge explosion of prosperity and economic growth
has taken place in Hong Kong during the last five years. One of the
most remarkable feature of that growth has been the development of
economic links between China and Hong Kong. Hong Kong is now
China's largest export market. Over one third of its export
earnings come from Hong Kong. Hong Kong is China's largest source
of foreign investment and Chinese investment in Hong Kong is large
and growing. The extent of these economic links deserves to be
emphasised not only because they reflect the continuing success of
Hong Kong in itself but because they demonstrate the growth of the
already massive stake that China has got in the continuing success
of Hong Kong.
China's desire to preserve this economic miracle and uniquely
dynamic society is clearly reflected in the Joint Declaration and
Basic Law. The future Special Administrative Region Government will
decide its own economic, trade, monetary and financial policies;
safeguard property rights; issue its own currency and collect its
own customs; and maintain its own trade missions overseas. Some of
the most zealous free-marketeers among the drafters of the Basic Law
have even suggested that the Special Administrative Region
Government should be legally bound to a low-tax policy and a
balanced budget. Whether such provisions should appear in a
constitutional document is a moot point, but it does illustrate the
determination of both Hong Kong and mainland Chinese drafters of the
Basic Law to preserve the economic status quo.