The Conflict

The resumption of Chinese rule over Hong Kong in 1997 meant that the world's leading communist nation would absorb one of the world's leading capitalist economies. International observers questioned whether the "one country, two systems" approach would work for the integration of Hong Kong into the People's Republic of China.

Economic

• Although China has undergone some policy changes since the 1970s that have taken its economy further into market-based responses, it is still guided by state control and central planning. In contrast, the economy of Hong Kong has been one of the most market-based in world history, with the private sector taking the leading role in economic growth and planning.
• Hong Kong's greatest value to China is its dynamic capitalist economy. Hong Kong is the major point of transfer for Chinese...