Taiwan ROC & Hong Kong

Internal & External Politics

Taiwan ROC Government

President (4-year term after 1996)The Five ``Yuan”:

Executive Yuan (Premier, ministers, etc.) Legislative Yuan (3-year term) Judicial Yuan (15 grand justices) Examination Yuan and Control Yuan

National Assembly (constitutional issues)

Diplomatic Tug of War

162 countries recognize PRC as the legitimate government of China 8 (’49) 32 (’59) 49 (’69) 113 (’79) 129

(’89)27 countries recognize ROC as the

legitimate government of China

US Official Policy

US government shifted diplomatic recognition from ROC to PRC in 1979

US congress passed Taiwan Relations Act in 1979

American Institute in TaiwanTaipei Economic and Cultural

Representative Offices in US

Economic Ties

Trade and investment expanded rapidly despite restrictions by ROC government

Workaround: Hong Kong & Macau``Three links”:

mail transportation trade

President Chen Shui-bian

pledged in 2000 that, unless the CCP used military force against Taiwan, he would: not declare Taiwan independent not change the name of Republic of China not hold referendum on independence …

2002: “separate countries”“referendum”

President Jiang Zemin:

``One-China principle is the basis for cross-straits relations

``Both the mainland and Taiwan belong to one China

``On the premise of the one-China principle, all issues can be discussed”

Stress on cultural & economic exchanges

Taiwan & Mainland's GDP Growth Rate

-30

-25

-20

-15

-10

-5

0

5

10

15

20

25

PRC-UK Negotiations

Deng Xiaoping: “1 country, 2 systems”

PRC Constitution of 1982: S.A.R.PRC & UK Joint Declaration in 1984

Handover to PRC

7th National People’s Congress adopted Basic Law of HKSAR in Beijing in 1990

Became Hong Kong Special Administrative Region of PRC in July 1, 1997

Basic Law of H K SAR

Stipulated in PRC-UK Joint Declaration in 1984

Drafted by a committee with members from both Hong Kong and mainland

Adopted by 7th NPC in Beijing in 1990Came into effect on July 1, 1997Constitutional document for HKSAR

3 Principles in Basic Law

``One Country, Two Systems” Capitalist system and way of life shall

remain unchanged for 50 years (B.L. A5)

``High Degree of Autonomy”``Hong Kong People Running Hong

Kong”

1 Country, 2 Systems

Legal system (British common law) shall be maintained, except for any law that contravene the Basic Law and subject to amendment by the legislature (B.L. A8)

High Degree of Autonomy

HKSAR enjoys executive, legislative, and independent judicial power, including that of final adjudication (B.L. A2)

``HK People Running HK”

executive authorities and legislature shall be composed of permanent residents of Hong Kong (B.L. A3)

public servants must be permanent residents of Hong Kong (some exceptions)

Central Government

responsible for defense and foreign affairs relating to HKSAR (B.L. A13-14)

authorizes HKSAR to conduct relevant external affairs on its own (B.L. A13)

HKSAR shall be responsible for the maintenance of public order

11 PRC laws apply to HK (B.L. A18)

Rights and Freedoms

freedom of speech, of the press, of publication, of association, of assembly, of procession, of demonstration, of communication, of movement, of conscience, of religious belief, of marriage..

the right and freedom to form and join trade unions, and to strike

Three Branches

Chief Executive Tung Chee Hwa

Legislative Council

Court of Final Appeal

S/election of C.E. & Legco

Shall be specified in the light of the actual situation in the HKSAR and in accordance with the principle of gradual and orderly progress (B.L. A45 & A68)

The ultimate aim is the election of the Chief Executive and all the members of the Legislative Council by universal suffrage (B.L. A45 & A68)

S/election of Legco

Chief Executive S/election

800-member Election Committee industrial, commercial, and financial

sectors 1/4 the professions 1/4 labor, social services, religious, & other 1/4 Legco, HK deputies to NPC, etc. 1/4

Tung Chee Hwa (1997 - 2007) no more than two consecutive terms

Since 1997

Freedoms and rights substantially intact dissident groups Falun Gong

Judicial system remains the sameWeak executive and strong civil serviceLack of political skillsMultiple political parties

H.K.’s Competitiveness

Geographic location one of the best deep-water ports in the

world

hardworking and well-educated workforce literacy rate 94%

``World’s Freest Economy”

exports & imports each ~US$200b > GDP

GDP per capita: US$23,027no VAT, sales tax, or capital gains taxonly 3 types of income are taxed:

profits, salaries, and property31% live in public housing

Influence on Mainland

US$220 billion direct investment each way

Hong Kong bodies of law and expertise

Hong Kong attracts talents from mainland

Hong Kong radios, TV, newspapers, magazines, and Internet on mainland