Mainland Affairs Council

Situation Analysis: Four Years
After Hong Kong’s Handover

I. General Evaluation

1. Hong Kong remains stable politically, and Tung Chee-Hwa’s power core is taking shape
2. Despite the ups-and-downs in the rating of the HKSAR government’s performance, the gap between extreme public opinions has narrowed
3. Many hurdles are still in the way of Hong Kong’s democratic development
4. HKSAR’s handling of the Falun Gong damages its autonomy
5. Independence of Hong Kong’s judiciary system is worrisome
6. Increasing self-censorship of the media harms freedom of the press
7. Despite a positive economic performance, Hong Kong has faced rising unemployment
8. Intensifying bilateral interaction pulled Hong Kong under the increasing influence of the Mainland
9. Hong Kong’s international relations with other countries remained unchanged, under close watch of the international community
10. Taiwan-Hong Kong relations remain restricted, requiring a major breakthrough
11. Hong Kong has 130 post-1997 controversial events

II. Construct a Holistic and Pragmatic Hong Kong Policy

1. The current state of Taiwan-Hong Kong relations
2. Future orientations

III. Conclusion

IV. Appendix

1. Hong Kong political, economic situation
2. Taiwan-Hong Kong trade, economic flows
3. Major exchanges of visits between Taiwan and Hong Kong last year
4. Controversies after the handover
5. Major events in the fourth year after handover