Reflections on the Economic Future of Hong Kong

This Article assesses the economic future of Hong Kong after reunification with China. After reviewing Hong Kong\u27s economic history, this Article discusses Hong Kong\u27s present economic situation, and both the positive and negative influences on its economic future. The author identifies China\u27s self-interest in Hong Kong\u27s continued economic prosperity as a positive factor for Hong Kong\u27s economy. China\u27s self-interest stems largely from the recognition that Hong Kong\u27s economic failure will impact China\u27s politics, economics, and foreign relations. Negative developments within China, however, could lead to a precipitous downturn in Hong Kong\u27s economy. Negative developments include potential military and political crises, government corruption, and further deterioration of U.S.-China relations. The article concludes, however, that Hong Kong continues to offer a highly favorable business environment for international investors, especially for U.S. businesses. Furthermore, Hong Kong will continue to offer a more stable investment environment than many other countries in Asia, Latin America, and Eastern Europe