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Chapter ^t The Ne w Positionin g o f Hon g Kon g after Reunificatio n wit h Mainlan d Chin a Jane Lee Introduction Hong Kon g ha s lon g serve d a s a gatewa y betwee n Chin a an d th e worl d and a t th e sam e tim e enjoye d a n advantageou s positio n a s a uniqu e an d separate par t o f Mainlan d China . Whe n Chin a resume d sovereignt y ove r Hong Kon g i n 1997 , i t wa s generall y believe d tha t th e succes s o f 'On e Country, Tw o Systems ' in th e Hon g Kon g SA R depende d t o a large exten t on maintainin g th e origina l syste m intac t an d preservin g Hon g Kon g a s a n independent an d separat e par t o f th e Mainland . In th e fe w month s immediatel y afte r 1997 , th e principl e o f 'On e Country, Tw o Systems ' i n practic e wa s regarde d a s successful . Th e Hon g Kong SA R wa s however confronte d wit h successiv e years of unprecedente d economic recessio n an d politica l tension . I n th e meantime , th e econom y of Mainlan d Chin a continue d t o gro w an d develo p steadily . T h e advantageous positio n tha t Hon g Kon g onc e enjoye d bega n t o be threatene d by th e emergenc e o f Mainlan d citie s suc h a s Shangha i an d Guangzho u a s well as other Asian cities like Singapore. Apparently Hon g Kong's advantage s are both politica l an d economi c i n nature . Having gon e throug h a few year s of economi c an d socia l crises , Hon g Kon g shoul d graduall y realiz e tha t it s positioning mus t b e a combination o f political an d economi c strength s tha t will maintai n it s advantage s a s a major cit y i n China . This chapte r attempt s t o analys e th e positionin g o f Hong Kon g befor e and afte r 1997 . Th e chapte r wil l firs t giv e a shor t historica l revie w o f th e ambivalent positionin g o f Hong Kon g b y focusin g o n th e issue s develope d 122 Jane Lee during th e las t twelv e year s o f the politica l transition . I t wil l the n asses s th e events tha t threatene d th e advantageou s positio n o f Hong Kon g i n th e firs t few year s afte r reunification , an d analys e th e strategie s o f th e SA R government t o repositio n Hon g Kong . Finally , i t wil l offe r a n analytica l framework t o explai n th e contex t withi n whic h th e ne w positionin g o f Hong Kon g i s assessed . T h e Positionin g o f H o n g K o n g Durin g th e Politica l Transition , 1985-97 I starte d m y doctora l projec t i n 1984 , th e sam e year tha t Britai n an d Chin a concluded th e Sino-British Joint Declaration on the Future of Hong Kong. M y supervisors, namel y Professo r Jamie Macki e an d Professo r Wan g Gungwu , advised m e t o giv e u p m y origina l pla n t o researc h a narrow base d subjec t concerning political participation b y housing estates residents in Hon g Kong . Rather, the y suggeste d I tak e u p th e broade r bu t mor e controversia l issu e of political participation i n Hon g Kong' s politica l transition . Withou t muc h deliberation, I decided t o focu s o n th e questio n o f 'The Politic s of Transitio...

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