ABSTRACT
During the four years since Hong Kong’s return to Chinese sovereignty, interest has remained strong in how the Special Administrative Region (SAR) managed this unprecedented transition. So far, the story has been encouraging: Hong Kong’s reputation for flexibility and resilience has been tested as never before—but still stands firmly intact. The unique “one country, two systems” formula that provides the basis for Hong Kong’s return to Chinese sovereignty is also starting to be better understood. Above all else, the formula’s flexibility—Hong Kong as a part of China while preserving the distinctive characteristics that have underpinned its success—is starting to be appreciated. The fact that the formula has provided stability and resilience even through Asia’s worst economic crisis in decades is a remarkable—and underappreciated—achievement.
