The role of Hong Kong in the global system

Abstract

The study’s objective is to analyze the role that Hong Kong has in the global system; with the aim of putting light on how Hong Kong has evolved, the analysis starts with an historical review of Hong Kong, from its early period till the Handover to China in 1997 under the “One country, two systems” formula and the establishment of the HKSAR. Moving to the core of the analysis, the study examines those that are considered, from a foreign investor’s viewpoint, the points of strength of Hong Kong: the focus will be on the main aspects that make it important and attractive for the international business community and on the reasons why it is convenient to invest in or through it. For this purpose, a triple perspective is adopted: the analysis of Hong Kong’s advantages is structured into the three main aspects in which Hong Kong, in light of the literature and the data examined, excels; first, the role of Hong Kong as a business hub is discussed, then its position as an international financial center and as a trade and connectivity hub is examined. Furthermore, a second perspective is used to conduct the analysis: all of the Hong Kong’s advantages belonging to these three macro areas are explained in relation to a dichotomy, that is Hong Kong’s independence from and proximity to China. Finally, the analysis is summed up in a brief conclusive part.