| Hong Kong was once an outpost of the Chinese Empire until the Europeans began trading with the Chinese and discovered opium to be a profitable way to offset their trade imbalances. When Chinese officials confiscated a large shipment of British opium in an effort to stamp out the drug trade it triggered the first of two Opium Wars. As a result of the wars, China surrendered Hong Kong and the Kowloon Peninsula to Britain and a Crown Colony was established. In 1898, Britain expanded their footprint in the region by acquiring more territory from China under a 99 year lease. Under British rule, Hong Kong grew to become one of the greatest port cities in the world and overcame many challenges and setbacks along the way.
Hong Kong was invaded and temporarily occupied by the Japanese during World War II resulting in widespread food shortages, population decline and hyper-inflation. After the war Britain regained sovereignty of Hong Kong and a period of rapid growth resumed. The population expanded rapidly as migration from China surged during the Chinese Civil War. The population rapidly expanded again when China came under communist rule as people from the mainland fled in fear of persecution from the Communist Party. As the People’s Republic of China (PRC) began closing itself off to the rest of the world in pursuit of self sufficiency, Hong Kong rapidly industrialized and became a leader in textiles and manufacturing as well as the sole point of contact between China and the western world. Hong Kong experienced a series of setbacks over the next few decades resulting from the onset of China’s Cultural Revolution in the late 60’s, the global oil crisis in the early 1970’s and political uncertainty in the 1980’s, as the terms of Hong Kong’s return to PRC control were finalized. At the same time labor-intensive manufacturing shifted to mainland China in search of cheaper labor. Hong Kong responded by adapting to new economic drivers and reinventing itself as a leader in the financial services sector. Hong Kong continued to overcome significant challenges and uncertainty in the 1990’s. 1997 marked the end of Britain’s 99 year lease agreement and sovereignty of all acquired land was returned to the PRC. Hong Kong was designated as a Special Administrative Region under the policy of “one country, two systems" whereby the Central Government of the People’s Republic of China took responsible for the territory's defense and foreign affairs, while allowing Hong Kong to retain its free-market economy, social and legal system for the next 50 years. 1997 was also marked by the Asian Financial Crisis which jolted Hong Kong as did the arrival of Avian Influenza. Today, Hong Kong enjoys a vibrant economy. It is the most international city in Asia, and one of the most beautiful, exciting and lively cities in the world. |