Geography Reference
In-Depth Information
HONG KONG (XIANGGANG)
Here on 400 square miles (1,000 km
2
) of fragmented,
rugged land live 7 million people, many of them
refugees from the mainland (Figure 11-17). During
British colonial rule, Hong Kong was divided into three
segments: Hong Kong Island with the capital of Victoria;
Kowloon Peninsula and an array of other islands includ-
ing the largest, Lantau; and the mainland section known
as the New T Territories. While Hong Kong Island and
Kowloon were ceded in perpetuity to Britain in 1842
and 1860, the New T Territories were leased by Britain in
1898 for 100 years.
The expiration of that lease in 1997 impelled Britain
to negotiate the return of the entire colony to China.
Then, Hong Kong, British Crown Colony , became the
Xianggang Special Administrative Region, although the
name Hong Kong remains in general use. The return of
Hong Kong in 1997 (and Macau in 1999) was celebrated
throughout China. On July 1, the handover date, Bei-
jing' s hand-picked Chief Executive of Hong Kong Special
Administrative Region announced, “For the first time in
history , we, the people of Hong Kong will shape our own
destiny . We will finally be master of our own house.”
Hong Kong is governed by a mini-constitution
known as the Basic Law . The Basic Law gives Hong Kong
a high degree of autonomy except in matters of foreign
policy and defense, which are under the control of Bei-
jing. Beijing is committed to preserving Hong Kong' is
capitalist system and lifestyle for 50 years. Capital is free
flowing in and out of the region; Hong Kong is a member
of the World T Trade Organization, the World Bank, and a
variety of other economic and trade structures. Many of
the people of Hong Kong resent the fact that Beijing ap-
points the Chief Executive and other government mem-
bers. They have demonstrated in significant numbers for
true democracy with an elected government. The Beijing
government continues to deny these rights to the people
of Hong Kong.
As a free port, unencumbered by tariffs or other re-
strictions, with a magnificent, deep-water harbor, Hong
Kong soon became a hub of economic activity in East
Asia. It has become one of the world' s largest container
ports, a giant in banking and finance with its own stock
exchange, and a major processing and re-exporting cen-
ter. Hong Kong is now the eleventh largest trading entity
in the world.
China' s economic policies in adjacent Guangdong
Province have changed the structure of Hong Kong' s
economy . When Shenzhen SEZ was established,
other assembly lines in the Everbright factory that
produce Guess jeans and various other garments for
the Gap, the Limited, and Target. The Eileen Fisher
sweaters cost US$148—many times more than the
monthly wages of Everbright workers.
Inside the factory compound are brick-walled
dormitories. A smell of noodles mixed with the
odor of urine fills the halls. Each room has six
bunks with stained, thin mattresses. The few squat,
hole-in-the-floor toilets are shared by many and are
perpetually clogged. Nonetheless, dorm rooms are
decorated with dreams—posters of pop singers,
movie stars, sports cars, and the like. On the wall
across the hall is an advertisement showing a shiny
Phillips mobile phone.
Workers earn as little as US$37 a month—barely
a dollar a day . Those in supervisory positions can
earn up to US$8 a day , turning them into the major
breadwinners for their entire family; often they can
earn more in a few months than their family can earn
in a year. When they return home during the week-
long Chinese New Y ear holiday each spring, they
come back from the countryside with friends or
cousins eager to land jobs in the sweater factory .
Hard Times Since 2007
Many companies have fallen on hard times in the recent
global economic crisis. A collection of factors such as ris-
ing energy and other input costs, workers clamoring for
higher wages, higher tax rates, and tougher regulations
are leading a swath of factories to close, especially in
Guangdong Province. In 2007, nearly 1,000 Hong Kong-
owned businesses left Guangdong. Some relocated to
cheaper areas inland. Others are moved to less-costly
Vietnam and Cambodia. Most of the closures involve,
small, low economies-of-scale plants.
Businessmen are encountering resistance in several
areas. Y ounger generations are more willing to stand up for
their rights. No longer accepting of pittance pay , they are
more interested in pursuing a career than simply having a
job. The yawning income gap, rapid turnover, and dis-
gruntled migrant workers have led to higher crime rates.
Senior leaders in Beijing want to propel the economy up-
ward from polluting, resource-draining, labor-intensive
light industry toward innovative, high-tech and service
businesses. Moreover, local governments are beginning to
monitor environmental impacts and workers' rights.
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