ANNUAL REPORT

dkrause on DSKHT7XVN1PROD with USCC
SECTION 3: CHINA AND HONG KONG
Introduction
The year 2016 saw notable developments in Hong Kong politics
and society. Many of these events were indicative of mainland China’s
increasing efforts to control political life and the flow of information,
and Hong Kong citizens’ resistance to them. This was illustrated
most clearly in the September legislative election, which saw
a record voter turnout and prodemocracy candidates gaining three
seats, despite Beijing’s efforts to undermine those running on prodemocracy
or pro-independence platforms. The election outcome
was influenced in part by the emergence of a small but vocal political
minority supporting self-determination (and among some, outright
independence). The election took place against the backdrop
of an alarming rise in mainland interference in Hong Kong. One
example of this was the apparent abduction and detention of five
Hong Kong booksellers by mainland authorities and the consequent
chilling effect on the publication and distribution of politically sensitive
books and books that have been banned in the Mainland.
This incident has threatened the maintenance of the ‘‘one country,
two systems’’ framework * and led some observers to question Hong
Kong’s long-standing status as a leading global financial hub.
In addition to these developments, this section examines Hong
Kong’s economic and security ties with the Mainland, and the implications
of these trends for the United States. It is based on open
source research and analysis and consultations with U.S. and foreign
nongovernmental experts.
Hong Kong’s Changing Political Landscape
Background
As previous Commission reports have illustrated, Hong Kong’s
politics and governance since the United Kingdom’s (UK) handover
of Hong Kong to Beijing in 1997 have been characterized by its
unique ‘‘one country, two systems’’ framework and two competing
impulses: mainland China’s desire to exercise control over Hong
Kong, and Hong Kong citizens’ desire for greater autonomy and
more democratic governance. This tension has been evident in recent
years, particularly as it relates to Hong Kong’s electoral process.
In June 2014, Beijing moved to restrict Hong Kong’s political development,
rejecting calls for democratic reform and shaping the
conditions of Hong Kong’s current political strife. That month, the
Mainland’s State Council Information Office issued a strongly
* The ‘‘one country, two systems’’ framework is a policy measure adopted by the People’s Republic
of China following the establishment of Hong Kong and Macau as Special Administrative
Regions. The system grants Hong Kong and Macau the right to self-govern their economy and
political system to a certain extent, excluding foreign affairs and defense.
VerDate Sep 11 2014 14:49 Nov 01, 2016 Jkt 020587 PO 00000 Frm 00049 Fmt 6601 Sfmt 6601 G:\GSDD\USCC\2016\FINAL\09_C3_M.XXX 09_C3_M
(404)