July 2005

The Hong Kong Special Administrative Region (HKSAR) has recently recovered from an economic downturn and the SARS virus outbreak of 2002-2003 which crippled trade and tourism. There has also been a major change in top government personnel, with the former Chief Executive, Tung Chee-Hwa, being replaced by Donald Tsang as the new Chief Executive of Hong Kong. The next major issue to be addressed in Hong Kong is the pace of further democratization and the extent to which the next elections for the Legislative Counsel will be based on direct elections of all seats or a larger portion thereof. This report surveys Hong Kong’s political landscape, major political issues of concern to Congress, and the HKSAR’s economic situation.