Given the full confidence and trust of Beijing, Chief Executive Tung Chee-hwa is playing a pivotal role in bringing about greater economic integration with the mainland as Hong Kong's economy heads towards recession.
But as Mr Tung emphasises the need to 'go north', there are fears that Hong Kong will no longer be what it was - contrary to the promise of keeping a capitalist system intact under 'one country, two systems'.
This is the broad observation of academics and politicians on the sensitive question of how Mr Tung handles relations with the mainland. Battered by an economic crisis and drastic economic restructuring, City University academic Anthony Cheung Bing-leung said the community had been understandably looking towards the mainland for new development opportunities.
'Economic integration is the megatrend that no one can resist . . . Mr Tung has a strong advantage in handling the issue because he is fully trusted by Beijing,' Dr Cheung said.
He cited the increase of mainland visitors, the deferral of Shanghai's plan to build a Disney theme park and 'economic rescue measures' being considered by Beijing for Hong Kong to show how Mr Tung has given full play to the China 'trust factor'.
At a meeting with Mr Tung during his recent duty visit to Beijing, President Jiang Zemin and Premier Zhu Rongji reaffirmed full support to help Hong Kong develop its financial, logistics, trade and tourism sectors.