11/28/2017. China beyond the Heartland. Hong Kong: Discussion. Hong Kong. What is the relationship between HK and China?

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1 China beyond the Heartland Economic integration Hong Kong & Taiwan (Chapter 13, 14) Hong Kong: Discussion Conflicts between HK residents and Chinese tourists CNN: Chinese call for boycott of Hong Kong after urine incident (April 25, 2014) Defiant Hong Kong football fans boo Chinese anthem (Nov. 9, 2017) Why? What is the relationship between HK and China? A) They are two independent countries B) They are two independent regions of one country C) HK is a special administrative region of China D) HK is China s colony Hong Kong HK SAR Location: Pearl River Delta Central position in SE Asia Focal point for shipping/airline route 3 components: Hong Kong island, Kowloon, New Territory 7.2 Million population 423 m2 of land area Crowding Lack of space Going upward An urban jungle 1

2 Victoria Harbor, Star Ferry British Rule Heaven for Shopping 2

3 Time is money Business rules Dirtiest Financial Center The History of Hong Kong Pre-1842, a fishing village British Rule ( ) Acquisitions (3 steps): 1842: Hong Kong island 1860: Kowloon area (9 km 2 ) 1898: 99-year lease on New Territories and 235 surrounding islands The other HK: beaches, mountain trails Three components: Hong Kong island, Kowloon, New Territory 3

4 The History of Hong Kong Pre-1842, a fishing village British Rule ( ) acquisitions (3 steps): : brief Japanese occupation s: Civil war and PRC Massive immigrants to HK, often with capital & skill The History of Hong Kong 1960s - 70s Leftwing movements and clashes with colonial police as a manufacturing center, made in HK Britain asked to renew, but China refused 1984: Sino-British Joint Declaration on the return of HK to China on June 30 th, 1997 High degree of autonomy maintain capitalism Move toward direct election by 2007 Hong Kong was the least involved in the decision-making 1984: Sino-British Joint Declaration Iron Man meets Iron Lady The Return of Hong Kong, One Country- Two Systems 1997: handover HK SAR The History of Hong Kong Pre-1842, a fishing village British Rule ( ) 1997-: Back to Chinese rule One country, two systems Defense and diplomacy Beijing autonomy on all other matters SAR: Special Administrative Region Chris Pattern Jiang, Zemin Tung Chee-hwa 4

5 Hong Kong s Politics Myth: democracy in HK under threat Truth: there was no democracy under 150 years of British rule (until the last a few years) Appointed governor from Britain Appointed members of the Legislative Council, few Chinese English as the only official language Now both English and Chinese as official languages Hong Kong s Politics Countdown to 1997: battle for control Britain: Last minute democracy 1985, first indirect election for 26 seats on Legislative Council 1989 Tiananmen Square incident 1991: first direct election, 39/60 seats Chris Pattern ( ): mandate to introduce as much democracy as possible before the handover exit in glory China: influence but try to be subtle 1996: a preparatory committee to choose the governor cancel changes made by British Chinese plan (next slide) Hong Kong s Politics Post-1997 democracy The Basic Law: mini-constitution 1998 election: 20/60 seats in Legislative Council are directly elected 30 indirectly elected by professionals 10 were elected by 800-member Election Committee Starting from 2004: direct election for 30 members of Legislative Council Starting from 2007: direct election for the Chief Executive Similar to electoral college in the U.S.? One Person, two votes GC FC, or DC 5

6 Hong Kong s Politics Tung Chee Hwa First Chief Executive 2002, elected for the 2nd term Resigned in Asian Financial Crisis 2003 SARS 2003, Article 23 of the Basic Law controversy anti-subversion law The Basic Law Article 23 The Hong Kong Special Administrative Region shall enact laws on its own to prohibit any act of treason, secession, sedition, subversion against the Central People's Government, or theft of state secrets, to prohibit foreign political organizations or bodies from conducting political activities in the Region, and to prohibit political organizations or bodies of the Region from establishing ties with foreign political organizations or bodies Election Donald Tsang (Bow-Tie Tsang) 1995: appointed as Financial Secretary, the first Chinese to hold the position after 150 years of British rule 2001:Chief Secretary for Administration 2005: serve as Chief Executive 2007: elected 2012 Election Umbrella Movement: universal suffrage (9/26/ /15/204) Leung Chun-ying Real Estate surveyor 6

7 2016 Legislative Council Election Record high turnout 58% 70 seats in total: 35 directly elected Youth protesters won 6 seats Nathan Law, 23 yrs old (Demosisto) Yau Wai-ching, 25 (Youngspiration) Pro-democracy, independence 2017 election for Chief Executive Carrie Lam: Served as #2 official under Leung The first female leader Won 777 votes out of 1194-member election committee (more than double that of 2 nd candidate) Promised to focus on economy and revamp government agencies Hong Kong s Economy Entrepot due to its location s Export-oriented industries Made in Hong Kong Cheap labor 1980s: economic restructuring Upgrade to high value-added manufacturing Huge increase in financial services Outsourcing to mainland China Hong Kong s Economy Integration with Shengzhen, PRD Cross-border trade Reexports of Chinese goods (1/3) Cross-border travel Cross-border consumption Housing, shopping, entertainment Currency Name: Shengang Front shop, back factory de-industrialization in HK The Front shop, back factory Model 7

8 Hong Kong as China s window to the world Hong Kong s Challenge Economy Stock market crashed in 1997 Asian Financial Crisis in 1998 SARS crisis discouraged tourism Expensive housing market Competition from Chinese cities: e.g. Shenzhen, Shanghai as container ports; Shanghai as a financial center HK s dependency on China for future development Hong Kong s Challenge Fundamental geographic problem Lack of space Population control Foreign workers: 7 years of uninterrupted residency, but maids were specifically excluded Maids of Philippines High court: unconstitutional in 2011 Government appeal Court of Final Appeal: overturned in 2013 Spouse and children from Mainland Umbrella Movement (9/26/ /15/204) 5.1+ severely unaffordable seriously unaffordable moderately unaffordable <3.0 affordable 8

9 Umbrella Movement Demand for democracy: universal suffrage Discontent Lack of housing affordability: Two weeks after the movement ended, a target of housing construction of 480,000 housing units in the next 10 years, expansion of subsidized homeownership program Severe inequality Stagnant income Changing position in relation to mainland(ers) Hong Kong s Future Should Hong Kong people enjoy universal suffrage without any influence from Beijing? Why? Taiwan The Sunflower Movement March-April, 2014 Should Beijing government exert some influence over elections in Hong Kong? Why? Economy? Democracy? Mainland? President of Taiwan called Trump Taiwan What is the relationship between Taiwan and China? A) They are two independent countries B) Taiwan is a special province of China C) Taiwan is China s colony D) They are two independent regions of one country E) None of the above 9

10 Ethnic groups: Ethnic Taiwanese Hakka Chinese 10 groups of indigenous peoples Two major social groups: Mainlanders vs. Taiwanese Taiwan: A Brief History Chinese immigrants, Japanese pirates, and Taiwanese natives 16 th -19 th century: Sinofication 1558: China s administrative presence Large scale permanent Chinese settlers : brief occupation by the Dutch and the Spanish 1683: incorporated into China, prefecture of Fujian Province 1858: Treaty of Tianjin, two ports in Taiwan 1888: Taiwan as a province by Manchu Emperor Taiwan: A Brief History : Japanese occupation Cultural assimilation; second-class citizen status Force to adopt Japanese names Learn and use Japanese language Conscripted into Japanese military Capital improvement North-south railway, highways Deep water ports: Keelung, Kaohsiung Cargo-handling facilities: Keelung and Kaohsiung Modern agriculture Irrigation system; Land reform; More crop varieties Both laid down foundation for a modern economy 10

11 Taiwan: A Brief History : restoration to China End of WWII 1947, 2-28 event: conflict between KMT Chinese and Taiwanese 1949: KMT exile government with 1.2 M mainlanders Chiang Kai-shek, Republic of China (ROC) Taibei as the Capital Both ROC and PRC claim to be the legitimate government of China: one China ROC: PRC: We must Liberate Taiwan! Recover the Mainland and defeat the communist bandits! Anti-communism, fight Russia, and rescue the fellows from the same womb Eating and drinking are about counter attack Taking medicine and getting gasoline, never forget the mainland Chiang Kai-shek 11

12 Taiwan: a Brief History Role of the U.S. Diaoyu island: did not return to Taiwan 1950: 7 th Fleet to Taiwan Strait China (Soviet Union) vs. Taiwan (U.S.) 1971: expelled from UN 1972: Nixon visited China Shanghai Communique the Government of the United States of America acknowledges the Chinese position that there is but one China and Taiwan is part of China Acknowledge one China and PRC Taiwan: a Brief History Role of the U.S. 1950: 7 th Fleet to Taiwan Strait 1971: expelled from UN 1972: Nixon visited China Shanghai Communique 1979: formal US-China diplomacy Nongovernmental relations Taiwan Relations Act American Institute in Taiwan, Taiwan s Coordination Council for North American Affairs in the U.S. Role of the U.S : $4.1B : arm sale suspended 2008: agree to $6.4B sale Role of the U.S. Why does U.S. maintain such a relationship with Taiwan and China? What is the impact of the U.S. on the relationship between Taiwan and China? Taiwan: a Brief History Economic reform in 60s-70s Export oriented manufacturing Rapid economic development/growth One of the four tigers 1980s -: Opening-up from both sides Mainland: SEZs Taiwan: Chiang Ching-kuo: lift ban on travel to mainland (1987), lift martial law Economic restructuring and outsourcing to mainland: IT industry in Taiwan 1.2 M Taiwanese in mainland, thousands of businesses 1992 Consensus: one China, allow different interpretations Political Reform in Taiwan President Lee Teng-hui ( ) Served as Vice President under Chiang Became a president in 1988 after Chiang s death state-to-state relation 1996 first direct presidential election Missile test by China had opposite effect 54% vote 12

13 Political Reform in Taiwan Opposition party: Democratic Progressive Party (DPP) formed in 1986 independence, Taiwanese 2000 Presidential Election (Chen Shui-bain, 39% vote) James Soong 36.8% (Independent; split from KMT) Lien Chan 23.1% (KMT) Voters turnout: over 80% Division within KMT Lee Tenghui s influence Political Reform in Taiwan Tried to be the President of all the people Chen pledges Four Nos and one without Will not declare Taiwanese independence Will not change the national title from "the Republic of China" to "the Republic of Taiwan" Will not include the doctrine of special state-to-state relations in the Constitution of the Republic of China Will not promote a referendum on unification or independence. Will not abolish National Unification Council Chen did mostly the opposite Enraged Beijing Worried Washington 13

14 Dec. 2, 2010 Political Reform in Taiwan Chen re-elected in 2004 with a small margin Shooting incident (conspiracy?) Corruption scandal, approval rate plunged Negative impact on economy Massive demonstration Call for resignation Chen Shui-bain Indicted 6 months after his second term Cheng and his wife will serve 19 years in jail Embezzling $3.15 million from a special presidential fund; Receiving bribes worth at least $9 million Money laundering 2008 Election Ma Ying-jeou (KMT) Back to the 1992 Consensus No independence, no reunification, no military forces Nominee Ma Ying-jeou Frank Hsieh Party KMT DPP Popular vote 7,659,014 5,444,949 Percentage 58.45% 41.55% Improve relations with the mainland Start direct flights Allow more mainland tourists to visit Help the island's financial industry go to the mainland 2012 Election (KMT won) Taiwan Tsai Ing-wen Ma Ying Jeou The Sunflower Movement March, 2014 Economy? Democracy? Mainland? 14

15 2016 Election (DPP won) Tsai Ing-wen Ma Ying Jeou Tsai: Neither renounce nor embrace 1992 Consensus ; maintain status quo Economic Ties Thrive China is Taiwan's largest trading partner, Taiwan ranks in the top 10 of China s trading partners Economic restructuring in Taiwan, and massive investment in the mainland ($155B since 1988) Lift restrictions on direct investment 2009: Taiwan open 100 industries for mainland investment Three Direct Links : trade, postal service, flight 2009, increased direct flights; Increased daily quota for mainland visitors Role of Culture The Sunflower Movement Did the economic integration backfired? Economic development vs. political identity Which is more important to Taiwan? Kinship ties and cultural similarity Family structure Custom, traditions, food Blood is thicker than water 15

16 Significance of the Rapprochement Taiwan: Call for increased educational and cultural exchange No unification, no dependence China: Unification as the ultimate goal happy with current economic and cultural integration Less aggressive language Both deal with easier part first (e.g. trade), harder part for later (international status of Taiwan) Question revisited What is the relationship between Taiwan and China? A) They are two independent countries B) Taiwan is a special province of China C) Taiwan is China s colony D) They are two independent regions of one country E) None of the above Prospect of Reunification Possible scenarios: A) Formal independence B) Reunification, as a single political entity C) Maintain status quo D) One country, two systems Which is the most likely to happen? The last two are probably more likely 16

17 Review for Section III Traditions and cultural changes Family, Marriage: change over time Chinese holidays: meaning, food Cultural changes: over time Role of the globalization Social Inequality and Poverty Winners and losers during transition Main trends in and patterns of inequality Policy responses Review for Section III Environment Factors causing environment problems Energy/resource use Economic development Modernization of agriculture Rapid industrialization Changing lifestyle Changing attitude and ongoing campaigns Taiwan and HK History Relationship with the mainland Economy, politics Challenges 17

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