Hong Kong

I

Introduction

Hong Kong, administrative region of China, consisting of a mainland portion located on the country’s southeastern coast and about 235 islands. Hong Kong is bordered on the north by Guangdong Province and on the east, west, and south by the South China Sea. Hong Kong was a British dependency from the 1840s until July 1, 1997, when it passed to Chinese sovereignty as the Hong Kong Special Administrative Region (SAR).

The British control of Hong Kong began in 1842, when China was forced to cede Hong Kong Island to Britain after the First Opium War. In 1984 Britain and China signed the Sino-British Joint Declaration, which stipulated that Hong Kong return to Chinese rule in 1997 as the Hong Kong Special Administrative Region (SAR) of China. The Joint Declaration and a Chinese law called the Basic Law, which followed in 1990, provide for the SAR to operate with a high degree of economic autonomy for 50 years beyond 1997.

II

Land and Resources

The total land area of Hong Kong is small, comprising only 1,092 sq km (422 sq mi). The surrounding territorial waters cover 1,830 sq km (707 sq mi). Hong Kong’s mainland portion consists of the urban area of Kowloon and a portion of the New Territories, a large area that became part of Hong Kong in 1898. Lantau Island (also called Tai Yue Island), ceded to Hong Kong as part of the New Territories but often considered separate from that region, is the largest island. Located about 10 km (6 mi) east of Lantau Island and across Victoria Harbor from Kowloon is Hong Kong Island. The city of Hong Kong (also known as Victoria) faces the harbor on the northern part of the island. The city is the site of the SAR government offices and the chief business district, known as Central.

Despite the small size of the Hong Kong SAR, the topography is varied and rugged because it is largely folded mountains. There are more than 20 peaks over 500 m (1,640 ft), and the tallest, Tai Mo Shan in the New Territories, rises to 957 m (3,140 ft). Hong Kong’s greatest asset is its deep and well-protected harbor between Hong Kong Island and Kowloon. Level land for development is scarce. Less than 15 percent of the land is developed because of the rugged terrain. Land reclamation schemes began in the mid-19th century and they continue to be important means of acquiring new land for urban development. Examples of reclaimed land include stretches of coastline on either side of Victoria Harbor.

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The only significant river is the Sham Chun, a small river that forms the northern border with Guangdong; all other drainage is small streams. The lack of sufficient drinking water is a serious problem; more than 80 percent of Hong Kong’s potable water comes from Guangdong.

Hong Kong’s climate is subtropical and monsoonal. The average daily temperature range is 26° to 31°C (78° to 87°F) in July and 13° to 17°C (55° to 63ºF) in February. Rainfall averages 2,159 mm (85 in) a year. Summers, which last from May to September, are long, hot, and humid. Typhoons regularly cross Hong Kong in summer and autumn. These powerful storms bring violent winds and extremely heavy rains that occasionally cause flooding and landslides. The winter, lasting from December to March, is cool and drier.

The heavy rainfall washes away many nutrients from the soil, making it generally thin, poor, and unsuitable for intensive agriculture. Moreover, there is little available land for farm cultivation. Most of the original forest vegetation was long ago cut or burned and replaced with grasses or planted tree species such as pine and eucalyptus. Wooded hills now account for about one-fifth of the land area, whereas grasslands, badlands, and swamps make up more than one-half.

Hong Kong, in association with the World Wide Fund for Nature, maintains an important marsh reserve for birds, Mai Po, along Hau Hoi Bay (also called Deep Bay) and the river boundary with Guangdong. Mai Po attracts about 260 bird species, among them numerous ducks, wading birds, kingfishers, warblers, and marsh harriers. The reserve is an important stopping point for migratory birds flying between Siberia and tropical Southeast Asia and Australia. In addition to birds, Hong Kong has numerous small mammals and reptiles.

III

The People of Hong Kong

At the time of the 1991 census, Hong Kong had a population of 5,674,114. The 2007 population was 6,980,412, indicating a population density of 6,699 persons per sq km (17,351 per sq mi). The population is unevenly distributed, however, with the greatest concentrations of people in Kowloon and across the harbor on Hong Kong Island. Some districts, such as Mong Kok in Kowloon, have population densities of about 40,000 persons per sq km (about 100,000 per sq mi), among the highest urban densities in the world. Although birth and death rates are comparatively low in Hong Kong, migration from other parts of China creates a high population growth rate, and migrants now make up about 40 percent of the population.

About 98 percent of the people are ethnic Han Chinese. Of these, 90 percent speak the Cantonese dialect of Chinese and come from southern China, or are descendants of people who originated there. The remaining 10 percent of Han Chinese come from other regions of China and speak other Chinese dialects. About 2 percent of the total population come from or have ancestors who came from foreign countries, most from Southeast Asia. Many people practice ancestral worship, owing to the influence of Confucianism, but all major religions are represented. Chinese and English are Hong Kong’s official languages.

From 1984 to 1997, due to the uncertainty of the transition back to China, thousands of well-educated and wealthy Hong Kong citizens moved to countries such as Australia, Canada, and the United States, where they obtained permanent residency status or citizenship. However, many returned to Hong Kong after their initial emigration.

In 1973 the Hong Kong government began a massive program of housing construction and industrial relocation in the New Territories. The program is an attempt to lessen the crowding of Kowloon and the Central district of Hong Kong Island, and to reduce the demand for transportation by building planned communities near employment centers. Since many people in Hong Kong prefer living near their workplace, this approach has helped to accommodate Hong Kong’s large population on its small area of land.

Education is free and compulsory for all children from the age of 6 to 15, and adult literacy is over 90 percent. Only a small percentage of high school graduates attend college or university on a full-time basis, however. There are seven colleges and universities, including two polytechnic schools. The largest and oldest institution of higher learning is the University of Hong Kong, founded in 1911. The Hong Kong Academy of Performing Arts offers courses in dance, music, theater, and technical arts. There are also more than a dozen technical institutes, technical colleges, and teacher-training colleges, which have large numbers of part-time students.

Hong Kong has a variety of cultural attractions and activities. The Hong Kong Arts Festival and the Hong Kong International Film Festival are annual events. Professional music companies include the Hong Kong Philharmonic Orchestra, the Hong Kong Chinese Orchestra, and the Hong Kong Dance Company. The territory has a thriving film and television industry. One of Hong Kong’s most popular actors is Jackie Chan, who is known for his starring roles and stunts in action movies. Hong Kong Disneyland opened in September 2005.

Hong Kong’s prosperous economy is reflected in the lifestyle of its people. They have one of the highest standards of living in all of Asia, and it is more than 30 times higher than China’s average standard of living. In 2005 Hong Kong’s per capita gross domestic product (GDP) was $25,592.30, although much of the wealth is concentrated into relatively few hands.

IV

Economy

Hong Kong’s position as one of the world’s most important economic centers is based on several factors. It is located midway between Japan and Singapore, and it lies astride the main shipping and air routes of the western Pacific. It also has long served as a major port of entry and trade for China, which uses Hong Kong as a primary link to the world economy. Furthermore, Hong Kong has a favorable atmosphere for business and trade. Despite the uncertainty associated with its return to China, which has a Communist government, Hong Kong continues to thrive economically and attract new migrants. Hong Kong’s economy has always been based upon commerce, trade, and shipping, and today it vies with Singapore as the world’s largest container port. Industry and tourism are also important, and agriculture continues to provide a significant share of the territory’s food and flower supplies, although Hong Kong must import the majority of its food.

Farming is a declining sector, because of the shortage of suitable farmland. There are now less than 2,000 hectares (5,000 acres) under cultivation for vegetables and flowers, although these produce about one-quarter of the fresh vegetables consumed. Increasingly, farmers are growing premium food and flower varieties, which fetch higher market prices than the traditional rice crop. Pig farming is also important. Hong Kong’s fishing fleet is significant and contributes about two-thirds of the live and fresh marine fish consumed each year.

Manufacturing developed rapidly in the 1950s and grew to become the most important economic sector in the early 1980s, when manufacturing employment reached nearly 905,000. Hong Kong was a leading producer of textiles, plastics, rattan furniture, watches, and clocks. Manufacturing thereafter declined rapidly, however, as the economy of Hong Kong underwent major structural change. Manufacturers began shifting the location of their production facilities to neighboring Guangdong Province and other locations in China, where labor and land costs were much lower. By the early 1990s industrial employment had declined to less than 575,000, and by 2005 it was about 185,000. However, the relocation of labor-intensive manufacturing to mainland China has been partially offset by the fact that many of the relocated businesses have continued to conduct export operations in Hong Kong. In addition, Hong Kong now manufactures goods that require a more highly educated and skilled labor force, such as electrical and electronic products. Most importantly, the services sector has experienced rapid growth, especially in finance, insurance, real estate, and business services, giving Hong Kong the sophistication of a metropolitan economy.

Hong Kong is among the leading trading centers in the world, and shipping and trade continue to be important aspects of its economy. The market is generally open and favorable to trade, and Hong Kong has been successful at balancing its imports and exports. Many of its exports are actually re-exports, products that are manufactured in other parts of China or other countries but distributed through Hong Kong. These products include clothing, textiles, telecommunications and recording equipment, electrical machinery and appliances, and footwear. Imports consist largely of consumer goods, raw materials, transportation equipment, and foodstuffs. Extensive trade occurs with other regions of China. In addition, Hong Kong’s leading international trading partners are the United States and Japan.

The unit of currency is the Hong Kong dollar (7.80 Hong Kong dollars equal U.S.$1; 2005 ). The Hong Kong Monetary Authority performs the functions of a central bank and authorizes three commercial banks—the Bank of China, HSBC (formerly the Hongkong and Shanghai Banking Corporation), and the Standard Chartered Bank—to issue Hong Kong dollars. The terms of the Sino-British Joint Declaration of 1984 allow Hong Kong to continue issuing its own currency until the year 2047.

Tourism is one of Hong Kong’s most important service activities and it is the third largest source of foreign exchange earnings. Tourism dollars injected more than $7 billion into the Hong Kong economy each year of the early 1990s, when nearly 9 million tourists visited annually. In 2005, 14.8 million tourists visited Hong Kong. Most visitors came from Taiwan, Japan, Singapore, Malaysia, and other locations in East and Southeast Asia. Many European and North American tourists also visited.

In addition to its excellent deepwater port and extensive maritime connections, Hong Kong has one of Asia’s main airports, the Hong Kong International Airport. Located on the islet of Chek Lap Kok off Lantau Island, the airport opened in 1998, replacing the old Kai Tak International Airport. There is passenger and freight rail service to Guangzhou.

Hong Kong has an extensive network of roads in the New Territories, in Kowloon, and on Hong Kong Island. This network is supplemented by the Mass Transit Railway (MTR), which connects Hong Kong Island, Kowloon, and the New Territories. A 33-km (21-mi) electric trolley line operates on Hong Kong Island, and ferries shuttle between the mainland, Hong Kong Island, and all other major outlying islands.

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