A question from a reader of this blog:

What will happen to Hong Kong after 2047? Do you think it will still retain its capitalist system and unique way of life? What about the common law legal system which is arguably much more sound than the legal system in the mainland? I am hoping that China will just give Hong Kong another 50 year extension on the SAR. I guess the main reason why I am concerned is that I’ll be alive after 2047. I guess time will tell.

I can’t see the current arrangements being extended for another 50 years – the PRC government would regard that as a sign of failure.

Perhaps the biggest unknown here is what will happen to China. Andres Gentry has been arguing that it will fragment. I don’t agree, but it’s an interesting thought – if it did happen then it seems fair to assume that Hong Kong would most likely continue as it is today. I’ll come back to that in a minute.

My feeling is that by 2047 China will have progressed so far that no-one will worry about Hong Kong retaining its capitalist system. The ‘unique way of life” is difficult to define, but perhaps Hong Kong will be different in the same way that, say, San Franciso or Los Angeles (or perhaps the whole of California) are different from the rest of the United States.

The legal system is a bigger problem. The British tradition gives Hong Kong a legal system that is respected throughout the world, and it would be difficult to give that up. Here the most relevant comparison may be with the European Union, where different legal systems do create problems but they have largely been solved. I am not an expert on legal matters, but it seems conceivable that ways could be found for the two systems to exist side-by-side, perhaps with greater effort made to consolidate commercial law.

Even though I don’t believe that China is going to fragment, the trend is towards giving more autonomy to the regions, and it is conceivable that either this will lead to the creation of a federal structure (as per the United States) or even something more akin to the European Union – or perhaps a bit of both. If you look at the Franco-German concept of how power should be split between the EU and the individual countries something similar could make sense for Hong Kong and China.

Thinking slightly more radically, the growth of free-trade areas and the interest in currency unions may change the whole concept of a nation state, and again allow Hong Kong to exist as a separate entity alongside the rest of China, within a larger grouping.

Democracy is another potentially difficult issue, but I expect China to continue making (slow) progress, and given that Hong Kong is already a special case it shouldn’t be a problem to allow that to continue after 2047.

The key point as far as I am concerned is that as China continues to develop, we will increasingly start to think of Hong Kong as a Chinese city, better in some respect and worse in others, but the physical and psychological barriers will disappear. If in thirty years time we are still worried about what will happen in 2047 (beyond the legal technicalities) it will indicate that there is something wrong, and China has not made the progress we expected. I think that’s unlikely, and we’ll probably be wondering why on earth anyone ever worried about it.

Personally, given that I never planned to come to Hong Kong in the first place, still less had any thoughts of living here permanently, I have taken the view that it’s fairly pointess to worry too much about what will happen in the future. Good people can thrive anywhere, and in the unlikely event that life in Hong Kong became intolerable there are plenty of other places to live!

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10 responses to “What will happen in 2047?”

  1. Ron avatar

    I think both Hong Kong and China should be fine.
    As for fragmenting, I don’t see that happening. I would again recommend a book that I have done at my and other blogs – The World In 2020.
    Worth reading. Sorry, can’t bother with amazon links.
    Cheers!

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  2. Michael Walczak avatar
    Michael Walczak

    “I can’t see the current arrangements being extended for another 50 years – the PRC government would regard that as a sign of failure.”
    Well I’m not so sure that the PRC would regard it as a failure. Deng Xiaoping wanted the SAR to last 100 years not 50 years. So I believe it may be possible that the PRC will extend it.
    While the PRC is making a lot of progress on the economic front, I am not so sure if things will be ideal in 2047. China has a lot of internal problems like 600 million peasents which makes things like democracy tricky. I also don’t believe they will fragment though.
    Your analogy of comparing the uniqueness of Hong Kong to San Francisco is an interesting one, but I feel that perhaps comparing Hong Kong to Puerto Rico might be even better. Puerto Rico is a territory of the U.S. much like Hong Kong is a territory of mainland China. Why can’t Hong Kong just continue to be a territory like Puetro Rico? I don’t think it would make the mainland lose face since they already have Special Economic Zones in certain areas on the mainland.
    Macau is even more thorny since gambling is legal there while illegal on the mainland.
    Well I really hope I’ll be able to carry Hong Kong dollars in my wallet after 2047….carrying Yuan with Mao’s mug around just won’t be the same. 😦 Maybe he’ll be replaced by a mug of Deng then.

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  3. Ron avatar

    According to “inside circles” Macau right now is the “wonder boy” for PRC whereas Hong Kong is the spoilt child.
    Even I think this is so. The differential treatment that both CE’s received in Beijing said it all.
    Shaking hands with one for a photo-op, everyone’s face was beaming. Shaking with other, faces looked like thunderstorm warning – weather forecast.
    Cheers!
    P.s.: Macau has done a impressive job with their economy and overall sentiment of their people after the handover.

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  4. Michael Walczak avatar
    Michael Walczak

    The problem with Macau though is that their people for some reason did not really care for democracy. Many already identified more with the mainland than with Macau because many came to Macau as recently as the 80s.
    In the case of Hong Kong, many Hong Kongers really don’t feel all that close to the mainland yet.
    Because of Macau’s passive nature, the Macau Basic Law has less democracy options than the Hong Kong Basic Law has.
    Both Chief Executives have similar backgrounds as in that they were both bailed out by China in their respective businesses. The Macau Chief Executive just happens to loook better because the people of Macau are more passive for some reason.

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  5. Chris avatar

    Macau has more reason to be grateful to the PRC than Hong Kong. Think about it – Macau had a serious problem with triads before the handover, whereas now that has gone away.
    Also, as far as sentiment is concerned, Hong Kong’s economy has (coincidentally) been weak almost since the day of the handover and is only now recovering, whereas Macau’s economy has been improving since the handover.
    As far as democracy (and other issues) are concerned, we have to bear in mind that Hong Kong is richer and more advanced, which tends to make the population (or at least the middle-classes) more assertive and demanding.
    I am not sure whether it is true, but I have seen it said that Portugal tried to give Macau back to China earlier, whereas Britain clearly didn’t want to give Hong Kong back and still (up until 1984) thought that it might be allowed to keep it beyond 1997.

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  6. Chris avatar

    I’m not sure that Puerto Rico is a good example since it is significantly poorer than the 50 states, but I see your point. Didn’t they vote against becoming the 51st state a year or two back?
    As for the Hong Kong Dollar, the Reminbi already circulates widely in Hong Kong, and it is certainly conceivable that we could see it replacing the Hong Kong Dollar long before 2047. It would make a lot of sense, though it might be seen as negative by some (more for the symbolism than for any real impact).

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  7. Michael Walczak avatar
    Michael Walczak

    Yeah the Reminbi already circulates widely in Hong Kong but the official legal tender is still the Hong Kong dollar. It is possible that the Yuan may replace or be completely interchangable with the Hong Kong dollar before 2047, but that will only happen once it is fully convertable.
    By the way, you can convert up to 16,553.60 Yuan per day per person at a Hong Kong bank, how do they set the limits? Can you only convert the Yuan when you have a bank account?
    Can private money changers convert a higher volume of the Yuan?
    The reason I’m asking is because I’m starting an Internet venture in China and we need to be able to convert the Yuan which is a little more tricky than other currencies.
    As far as Hong Kong being more advanaced than Macau, yes it is. Although on a GDP per capita basis Macau is doing pretty well for itself too.
    Yes Portugal did in fact try to give Macau back in the 70s. I don’t understand why they tried to do that since it had a pretty well established gambling business and at that time Deng wasn’t really in power and the concept of “one country two systems” didn’t exist yet. China amazingly did decline the offer.

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  8. Michael Walczak avatar
    Michael Walczak

    “I’m not sure that Puerto Rico is a good example since it is significantly poorer than the 50 states, but I see your point. Didn’t they vote against becoming the 51st state a year or two back?”
    Yeah they did. It is indeed significantly poorer and really does feel like a different country when you go there. Hong Kong is sort of the reverse since it is significantly richer. Although China’s cities are becoming richer and richer every day, although it’ll be a while before they can match Hong Kong

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  9. Chris avatar

    I’ve never needed to convert Reminbi to Hong Kong Dollars, but I know this is a big issue with companies that generate revenue in China. You might want to try Ron at Lai See, since he’s a businessman operating in China.

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  10. Alp avatar
    Alp

    Well from what I have read it looks like that PRC in impatient to get its hands laid on Honk Kong. Its not particularly happy with the popular demand of people of Hong Kong to have the right of universal suffrage. China is not happy with the demand of full democracy. According to Amnesty International and many Human rights organizations china might have actually acted against the principal of one country two systems. It looks like that china is not willing to extend one country two systems. There has been growing concern about the state of human rights an freedom of expression in Hong Kong. Most of the Hong Kong media is under-going self-censorship to please china. Media that tends to resist this may lose advertisements ( there have been reports of this). There have been many instances where there have been gross violations of human rights and freedom of expression by the HKSAR authorities on the orders from their masters in Beijing. But you know what, I feel that the values of democracy, human rights and freedom of expression are irreversible. Once you have allowed them to flourish you cannot withdraw them. So I hope that by 2047 these values become firmer although the Beijing masters are slowly trying to overshadow and reduce them. I hope that by 2047 most of the Basic law is upheld and that china realizes that it would be pointless to take a step backward and move to a worse legal and economic system as well as almost impossible to do without creating a huge mess.
    (read this report as well http://fra.controlarms.org/library/Index/ENGASA190012007?open&of=ENG-CHN )

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