2011 report to congress - U.S.-China Economic and Security Review ...

dkrause on DSKHT7XVN1PROD with $$_JOB292for low-cost housing in order to alleviate discontent over growingpoverty and high housing costs. He warned that ‘‘housing [in HongKong] is both a social and economic issue, and if it’s not handledwell, it becomes a political issue.’’ 284Beijing’s Influence in Hong Kong’s Political AffairsBeijing’s creeping influence in Hong Kong’s political affairs continuedto be a contentious issue in 2011. For instance, Beijing attainedan unprecedented amount of influence in the city’s independentjudicial system when Hong Kong’s highest court appealedto China’s National People’s Congress to interpret Hong Kong’sconstitution, the Basic Law. 285 This was the first time that HongKong courts had requested that Beijing interpret Hong Kong law,and some policymakers and outside analysts feared that this actionwould set a precedent for greater mainland influence in HongKong’s judiciary. 286 The case, in which a Delaware investment fundfiled a lawsuit against the Democratic Republic of Congo, hingedon the contested issue of whether sovereign states can be sued inHong Kong’s courts. The case was referred by Hong Kong’s Courtof Final Appeal to the National People’s Congress because it concernedforeign and diplomatic affairs, which, according to the BasicLaw, are the responsibility of the central government. In August,the National People’s Congress ruled that Hong Kong law wouldfollow the central government’s position of granting sovereignstates immunity from being sued. 287Another high-profile example of growing mainland influence wasa Hong Kong government proposal to introduce compulsory ‘‘moraland national education’’ for Hong Kong schoolchildren. The proposalwas met with staunch opposition by citizens, educators, andsome leaders, who denounced it as ‘‘political brainwashing’’ by Beijing,which had advocated patriotic education in Hong Kong since2007. 288 A public consultation period for the proposal lasted fromMay until August 2011, and a final curriculum guide is expectedto be released by the Hong Kong Ministry of Education in February2012. 289The divisive nature of Beijing’s influence in Hong Kong politicswas highlighted following closed-door negotiations over HongKong’s electoral reforms between Beijing officials and Hong Kong’sDemocratic Party in 2010. The reform amendments highlightedBeijing’s reluctance to allow significant democratic reforms to HongKong’s electoral process and exposed conflict within Hong Kong’sprodemocracy camp. 290 The Basic Law states that the ‘‘ultimateaim’’ of Hong Kong’s leadership selection process is ‘‘universal suffrage.’’291 However, the city’s top political leaders, the chief executiveand the Legislative Council, are currently selected by a largelyundemocratic combination of government appointments, popularvoting, and functional constituency voting.* 292 In response to evergrowingdemands for universal suffrage from democratic groups,the People’s Republic of China (PRC) Standing Committee of theNational People’s Congress in 2007 ruled that Hong Kong’s chief* Functional constituencies are interest group voting blocs, mainly comprised of business andindustry leaders. These groups, deemed vital to Hong Kong’s economic growth, are reliably pro-Beijing and generally support and reinforce the policy priorities of mainland China. Ngok Ma,‘‘Hong Kong’s Democrats Divide,’’ Journal of Democracy 22:1 (January 2011): 55.VerDate Nov 24 2008 13:46 Nov 10, 2011 Jkt 067464 PO 00000 Frm 00304 Fmt 6601 Sfmt 6601 G:\GSDD\USCC\2011\067464.XXX 067464