Hong Kong provided much of the economic muscle that has transformed China into a global financial powerhouse over the past three decades. The city of 7.3 million, which has been a special administrative region of China since the United Kingdom relinquished control in 1997, is increasingly intertwined with the mainland. But while Hong Kong remains relatively prosperous and is still a regional financial center, its recent growth rate is well below that of the People’s Republic. The territory has failed to diversify to mitigate its reliance on trade services and finance and faces a host of problems that will be difficult to overcome, according to economic experts. “Hong Kong has gone sideways,” says one.read full report
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Can it regain its luster?
Pro-democracy demonstrators depicted Hong Kong Chief Executive Carrie Lam as Pinocchio in a Jan. 1 march. As China has tightened its grip, Hong Kong has slipped behind the mainland economically. (Anthony Wallace/AFP/Getty Images)