A Brief History of Hong Kong

Early Hong Kong and Arrival of the Europeans

While Hong Kong’s development is a comparatively recent thing, humans have inhabited the region for millennia, a fact underlined by the discovery of various ceramics, bronzes and tools, including a 6,000-year-old stone hammer on Lamma Island. However, little of note occurred until the arrival of the Europeans in the 1500s. Portuguese mariner Jorge Alvarez first visited the Pearl River Delta in 1513, although initial foreign incursions focused on Macau and Canton (present day Guangzhou), while Hong Kong remained little different from anywhere else along this stretch of coastline, comprised of islands, farms and fishing villages until the First Opium War (see p. 16). As a result of the war, Hong Kong was ceded to the British under the 1841 Convention of Chuen Pi, although this wasn’t legally binding since it was never signed. Still, the British raised their flag at Possession Point on Hong Kong Island and Henry Pottinger was appointed as the first governor. The 1842 Treaty of Nanjing officially ceded the island to the British and also entailed the opening up of five other strategic ports around China to international trade. Thereafter, this small island, formerly known as Heung Gong (Fragrant Harbor), became British Hong Kong. From humble beginnings, this little harbor, less than a mile from the Chinese mainland, embarked on a colonial voyage that lasted over 150 years and saw the colony grow to become one of the most successful trading ports the world has ever known.

Early Days of British Rule

Traders from Canton and Macau moved to Hong Kong Island and land sales were held which resulted in the development of Central as a trading hub, while government and military buildings were erected nearby. The Second Opium War gave the British further concessions in Kowloon on the mainland, although it was the Portuguese who took the lead in colonizing the area. As the increasing economic potential of Kowloon was recognized, more businesses were established there. Meanwhile, over on Hong Kong Island, as the heat of the sticky summers took its toll, the Brits were retreating for the hills and Victoria Peak became the place to escape. In 1888 the Peak Tram funicular railway opened to ease the journey up to the hillside residences and it remains in use today. However, while coolies carried government officials and foreign traders around, the lot of the everyday Chinese was far less luxurious and in the humid lowlands disease was rife.

Racial Tensions

By the end of the 19th century, British administrators had begun to learn Cantonese and include the local community in government affairs – attempting to bridge the gap between themselves and the Chinese. But relations were still frosty and this lack of cultural interaction bred misunderstanding and fear on both sides. With the rise in Chinese Nationalism the British feared that Hong Kong was indefensible from the mainland, so they acquired a 400-square-mile plot of land north of Kowloon. The aptly named New Territories were secured under a 99-year lease in 1898. That deal ultimately led to the return of the entire colony to China in 1997.

Made in Hong Kong

Although racial tensions remained, it was money that held Hong Kong together and, as the economy began to embrace industry, business picked up. When the rest of China became locked in civil war, Hong Kong continued to prosper and many wealthy businessmen from the mainland relocated here. However, Hong Kong’s perceived invincibility was shattered when the Japanese invasion stretched into the territory in 1941. The British troops were supported by a number of Indian and Singaporean regiments, as well as the first Canadian forces to see active service in World War II. After the Japanese invasion began on December 8th, 1941, their superior numbers quickly forced the British to retreat from Kowloon and, a couple of weeks later, to surrender on Christmas Day. However, Japanese rule was shortlived and the British re-established themselves in 1945, quickly quelling moves to independence. The formation of the PRC in 1949 further swelled Hong Kong’s population with political refugees and entrepreneurs from Shanghai. This added labor force and business acumen made for a powerful cocktail that would soon project Hong Kong to the forefront of the Asian economy. Hong Kong’s industrial development began with textiles in the 1950s and by the end of the following decade there were factories producing everything from plastic toys to clothes and watches. All of a sudden the world was awash with “Made in Hong Kong” products. While China was undergoing the famines of the Great Leap Forward, Hong Kong was crowded, but prosperous. In response to the growing housing shortage, the first of numerous land reclamation projects were undertaken and buildings began to focus on the vertical – it was in the 1970s that Hong Kong really started to develop its skyline.

The Handover

By the 1970s Hong Kong was a regional financial hub and started to move into the tertiary sector, which was well-timed given Deng Xiaoping’s opening up of the mainland economy and the resulting industrial shift to north of the border. However, the question of what would happen when the British lease on the New Territories expired in 1997 was looming ever larger and the uncertainty this caused hindered investment. In 1984 the situation was resolved by the Joint Declaration, which assured the return of the entire territory to China in 1997 with a tacit understanding (but no guarantee) that its democratic system of government would remain in place for at least 50 years. This sent shivers up the spine of many Chinese who had fled here in 1949, and there was large-scale emigration to Australia, Canada, New Zealand and the USA. The flood of people leaving Hong Kong peaked after the Tian’anmen Square Demonstrations in 1989. Some of the student protests in Beijing were organized from Hong Kong and the most vehement condemnation of the brutal Chinese response came from here – candle-lit remembrance vigils are still held in Victoria Park on June 4th every year. Relations with the mainland were further strained when Chris Patten, the last British governor appointed to Hong Kong in 1992, introduced expansive electoral reforms, which gave a voice to a much greater percentage of the population, without backing from the Chinese government. However, contrary to the expectations of some, when the giant handover countdown clock in Beijing’s Tian’anmen Square finally reached zero, the return of Hong Kong passed without incident. The British sailed away on HMS Britannia and there were huge celebrations around China, but otherwise business in the territory carried on as usual. Patten’s electoral reforms were reversed and Tung Chee-hwa, a shipping magnate, was appointed as the first chief executive of Hong Kong Special Administrative Region (SAR), running the territory under the “one country, two systems” policy, which Beijing is still trying to repeat in Taiwan.

Competition, Democracy & Disease

However Hong Kong’s days as the economic top dog of the region were numbered, particularly after the designation of Shanghai as China’s financial capital. Shortly after the handover, the Asian Financial Crisis hit Hong Kong hard. Skyrocketing property prices and labor costs pushed more and more businesses north of the border into the Pearl River Delta and cities such as Shenzhen sprung up almost overnight. In spite of continued infrastructural investment (most notably the completion of the Sir Norman Foster designed international airport at Chek Lap Kok), the scale of development was more than matched over the border in the Delta, which was increasingly challenging Hong Kong’s role as the region’s primary trading hub. Added to this increased competition, the recent SARS and Bird Flu scares stopped the territory’s tourist trade in its tracks. Government corruption has been another major source of contention and, while some argue that the right to protest is an indication of political freedom, others point out that this is only valid if opposing viewpoints are actually listened to. For Hong Kong to achieve the democratic society it aspires to it needs to satisfy the populace at large. In 2003 a half-million-strong protest took to the streets of Hong Kong and their calls for Tung Chee-hwa’s resignation were eventually answered in 2004 when he was replaced by the long-term civil servant, Donald Tsang.

The Environment

For all its first-rate public services, futuristic skyscrapers, fancy restaurants, theme parks and international visitors, Hong Kong is rated as one of the most polluted cities in the world, thanks in no small part to the thousands of factories just over the border. While the environment was previously treated as a resource to be exploited, greater awareness and concern have led to a stronger environmental movement in the territory, which has been incorporated into policy (see www.epd.gov.hk for more). However, when there’s lots of money at stake, nature still seems to get a rough deal, as evidenced by ongoing land reclamation projects. Of the many issues that might frustrate residents (and visitors), the environment is most regularly cited. If Hong Kong wants to continue attracting international businesses and their employees, it urgently needs not only to acknowledge the problem, but also to ensure that appropriate action is taken.

The Future

In summary, although Hong Kong is facing ever more competition and is no longer the only boomtown in the region, it is by far the most developed part of China. Today there is a first class infrastructure, people enjoy greater social freedom than they do just over the border and the government is committed to making Hong Kong a truly developed international city – look no further than the overload of public infomercials relating to health, safety and good conduct for a view of where they would like Hong Kong to be in the future. The return to China is only a decade old and the region is still trying to define its role within the burgeoning Chinese economy which undoubtedly makes for uncertain times. If the authorities can successfully walk the fine line between pleasing the people and keeping Beijing happy, as well as clean up the environment, then there’s no reason why Hong Kong can’t remain the focal point of this part of Asia. For now, the skyscrapers keep getting taller, the malls are full of shoppers flexing their credit cards and all the indications are that this adaptive, resourceful and international community will continue to prosper.