The Hong Kong question, namely the territory's return to China in 1997, has not only affected the livelihood and mentality of the local population, considering the persisting emigration, the rising political consciousness, the emergence of opportunity-seekers and the lingering anxieties and concerns, but has now become an international news item, arousing worldwide attention. Faced with this forthcoming event, which is unprecedented in history, policymakers, political actors, spectators and the Hong Kong public by and large have mixed feelings and expectations.The 1997 question concerns not only the future of Hong Kong, but also the prospects of China's reform, which started more than one and a half decades ago. The way in which China has been handling the Hong Kong issue is reflective of how much progress the country has made in reform, and simultaneously, the problems of its modernization. This dissertation tries to see from Beijing's perspective, providing a systematic and critical analysis of its policy toward Hong Kong from the proclamation of the Sino-British Joint Declaration to the adoption of the Basic Law at the National People's Congress in 1990, a period that was crucial in determining Hong Kong's political infrastructure after 1997. Looking into this recent history provides us with a better understanding of the Chinese reform effort, and is important for us, who not only care about Hong Kong, but also about China's development, and in particular, about its central-periphery relations and the coastal special economic zones. From Beijing's point of view, its successful administration of Hong Kong after 1997 will demonstrate to foreign countries that (1) it is a trustworthy member of the international community, and has fulfilled its promises of promoting the "stability and prosperity" of the territory (2) its present political system can sustain a western style capitalist and market economy (3) the economies of southern China, Hong Kong and Taiwan will continue to grow and integrate and (4) the unification with Taiwan is impossible. The takeover of Hong Kong is one of the most important episodes for China's domestic development, as well as its foreign diplomacy, after its opening to the world.
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