Industrial structural changes in Hong Kong, China under one country, two systems framework

Hong Kong has undergone substantial economic transformations and developed into a sophisticated business and financial center in the Asia-Pacific region, since the return of sovereignty to China as a Special Administrative Region under the One Country Two Systems (OCTS) in 1997. This paper discusses and analyzes the industrial structural changes of Hong Kong in recent decades as well as its future challenges and opportunities. The data and finding reveal that even though Hong Kong will face fierce competition from the Mainland’s cities as the rise of China, the important role as a bridge between China and the rest of the world will brace Hong Kong itself under the OCTS for developing into a service hub for business and trade in the Asia-Pacific region.