Xi Jinping’s speech should lay to rest worries about ‘one country, two systems’ in Hong Kong

As Hong Kong marked the 25th anniversary of its return to China, questions were raised over the long-term viability of the framework
In his speech, China’s president clearly signalled that the system will continue after 2047, which should reassure those concerned about the city’s prospects

Bernard Chan

Published: 6:45am, 15 Jul 2022

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Have you ever noticed the flags flying at government buildings? If so, you may have observed that China’s flag is larger and hoisted higher than that of Hong Kong. That is the visual embodiment of “one country, two systems”.

When you think about it, the concept of having two completely different systems within a single country is quite bold and exceptional. To my knowledge, China is the only country that has implemented a model of this kind – not only once, but twice.

The Hong Kong and Macau special administrative regions (SARs) have different currencies, and different economic, political and legal systems, to that of the mainland, with common defence and diplomacy under the central government.

It is remarkable that not one, but three different currencies and legal systems coexist within one country, all working well alongside each other.

However, at the 25-year mark of Hong Kong SAR’s establishment, many of my friends in the business community and overseas were questioning the long-term viability of what has been the bedrock of Hong Kong’s stability.

How long will Hong Kong continue to enjoy its “high degree of autonomy” and one country, two systems? Negative overseas media coverage would have one believe that Hong Kong had already lost its autonomy.

Reassuringly though, President Xi Jinping delivered a strong message in his keynote speech marking the Hong Kong SAR’s 25th anniversary that there is no reason the principle of one country, two systems cannot continue in the long run or even indefinitely.

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Though he never detailed Hong Kong’s future beyond 2047, my interpretation is that the phrases used by Xi are a strong indication of China’s long-term commitment to the one country, two systems principle.

A similar interpretation was offered by Luo Huining, director of the central government’s liaison office in Hong Kong, who said the president’s “milestone” speech “gave the most definitive answer to the important question of how long one country, two systems will last”.

Other heavyweights and senior politicians, such as former chief executive Leung Chun-ying, followed suit in explicitly reaffirming the continuation and potential extension of one country, two systems.

Naturally, some conditions need to be met for the beneficial policy to be sustained. These were underscored under Xi’s “four musts” and “four expectations”. Xi affirmed that a key principle for continuation of the practice is that it be correctly implemented, with two systems following behind one country.

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Some critics and doubters, especially those who aren’t fluent in Chinese or familiar with Chinese politics, remain unconvinced. While acknowledging that what Xi said can be lost in translation, they say that the term limit of one country, two systems is still unclear and open to interpretation. Moreover, in their minds, an intention to extend the system beyond 2047 does not make for a guarantee.

That the president endorsed the role of Hong Kong as gateway to China and a “bridge” between China and the rest of the world is telling. He mentioned specifically that the central government fully supports Hong Kong’s open and free business environment and its common law jurisdiction.

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Although seemingly inconsequential, it is actually significant that Xi went out of his way to say that the common law system will remain in place.

The Hong Kong public, business leaders and the international community should take heart from Xi’s messages in his encouraging remarks. They are the clearest signs yet that one country, two systems can extend beyond 2047.

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It is a relief to many that Xi directly stated that Hong Kong “can keep the previous capitalist systems unchanged for a long time and enjoy a high degree of autonomy”.

In the past 25 years, international investors and companies have engaged with China very successfully from the doorstep of Hong Kong. Taking advantage of Hong Kong’s special position and distinguishing features, such as an independent judiciary and market-driven economy, companies can use Hong Kong as a springboard into mainland China to further scale up their thriving businesses.

The one country, two systems framework that has maintained the city’s stability and prosperity can spearhead greater global market integration for China.

Perhaps Xi’s optimistic address can give us all confidence in the longevity of Hong Kong’s proven and unique system, which preserves the city’s distinctive character and capitalist system while aiding the country’s development.

Bernard Chan is a Hong Kong politician and businessman and a former Executive Council convenor