Current Political Economic Situation of HK Research Paper - 1

Current Political Economic Situation of HK - Research Paper Example Total exports of services and goods grew mildly by 1.4 percent. Domestic demand is projected to recover moderately while export prospects are expected to be positive (Bedford, 2014). The economic environment of Hong Kong is quite different from that of mainland China. Therefore, the direction of the relationship between Hong Kong and China is expected to alter the political and economic situation of Hong Kong. This paper analyzes Hong Kongs current situation. It then predicts and analyzes the possible outcomes, and forecast the future of Hong Kong and the resulting impacts on the world. Following the First Opium War, which happened between the years 1839 to 1842, British Empire made Hong Kong a colony. The Island of Hong Kong was ceded first followed in 1860 by Kowloon Peninsula. The British Empire leased the New Territories to Japan in 1898. The Japanese occupied the region until the end of 1945 when British restarted control until 1997 (Blake, 2011). The amalgamation of Chinese and British cultures marks the current culture of Hong Kong. For instance, the educational structure followed the British form until 2009 (Leece, et al. 2011). Due to the elongated, existence of British in Hong Kong, and the island had unique characteristics that have made Hong Kongers dislike mainland. Prior to the takeover, many people fled to Western countries. The People’s Republic of China received control of Hong Kong from Britain following their agreement of 1984 (Gerdes, 2006). Hong Kong became the first Special Administrative Region. A strong sense of the need for righting a historical injustice and the economic prospects led China to push hard for acquisition of Hong Kong in the 1980s and 1990s (Menpes and Henry, 2014). At the time, Hong Kong had everything, China required. It had international connections, wealth, and membership to global trade organizations. Beijing realized that those assets could assist