Hong Kong returns to China: The problem of political corruption

It has been widely assumed, but never carefully examined, that the reversion of Hong Kong to Chinese sovereignty in July 1997 will be accompanied by an increase in corruption in Hong Kong. The premises of this assumption are that the rate of corruption. in the People's Republic of China is high and shows no sign of diminishing, that the Chinese rulers are likely to play a more active role in administering the Hong Kong economy and political system than the 'one country two systems' concept might lead one to expect (and more than having British colonial officials), and that hence Chinese corruption may be expected to have considerable impact on Hong Kong. This paper attempts to test this argument empirically The major finding is that while the underlying assumptions appear to be greatly exaggerated, there are legitimate grounds for concern, owing to the legal immunity informally accorded prominent PRC business people and to structural ambiguities in the SAR political system giving rise to new patterns of informal politics.