On July 1, 1997, at the Hong Kong Convention and Exhibition Center, under the watchful eyes of all people, the British colonial rule of Hong Kong ended for a century and a half. As we all know, Hong Kong has been the financial center of Asia for a long time. In the past, Hong Kong brought huge economic benefits to Britain during its colonial period, and according to statistics, Britain made as much as $18 billion a year from Hong Kong. So by what means did Britain get so much economic benefit from it? What kind of impact did British colonization have on Hong Kong?
A century and a half of "free ports"
A free port is a form of trade-based free economic zone. With the development of international division of labor and international exchange, a more open special economic zone has emerged in the field of commodity circulation. Since 1942, when the British invaded Hong Kong and declared it a "free port", the content of Hong Kong's free port has been continuously enriched and expanded, and it has become one of the most well-known free ports in the world.
The reason why Hong Kong has become such a free port is due to the following unique conditions. Hong Kong's geographical environment has unique advantages, it is located in the south of China, backed by the mainland and facing Southeast Asia, which is the only way for the southern mainland to export overseas, and is a natural port. After the Second World War, the world situation was relatively stable, and the United Kingdom, Japan, and the United States all actively used Hong Kong to invest a lot of capital and technology for economic and trade needs. The British government in Hong Kong has adopted a series of effective political and economic measures, such as the free port policy externally and the well-known "non-intervention policy" internally, which has become more attractive to foreign investment. Coupled with the active support of the Chinese government, such as the cheap and large supply of fresh water, fuel, non-staple foodstuffs and raw materials, all these reasons have created the conditions for the formation and development of the Hong Kong Free Port.
But in the final analysis, the emergence and development of the Hong Kong Free Port is inseparable from the development of capitalism, and it can be said that it is a product of British capitalism. However, after other capitalist countries entered the monopoly stage one after another, Keynesianism and trade protectionism were implemented, many traditional free ports have disappeared, but Hong Kong, a free port, has continued to increase its freedom, mainly due to the unique economic system adopted by the British government in Hong Kong at that time.
The most basic of these is the free trade system, which opposes trade protectionism and does not control the tangible trade of imports and exports: there are no tariffs on general goods imported and exported, and no preferential treatment and privileges are provided for internal exports; Most of Hong Kong's enterprises are privately operated, because most industries are very simple and fast to register in Hong Kong, and domestic and foreign capital are treated equally, and capital in and out is also free; Hong Kong also adopts a free entry and exit system, which provides visa-free access to residents of more than 170 countries and regions around the world, making it convenient for people from all over the world to travel, invest and even work in Hong Kong.
These characteristics have made Hong Kong one of the freest economies in the world, and it is through this that Hong Kong has strengthened and enhanced its position in the global economy. In the 80s, Hong Kong's prosperity reached its peak, with GDP accounting for 5% of the country's total, making it one of the most competitive cities in the world.
The starting point of the Great Powers' plans of economic aggression against China
The start of the Opium War marked the beginning of China's modern history. In 1942, the Qing government signed the Treaty of Nanjing, the first unequal treaty in China's modern history, which called for the cession of Hong Kong Island to the British, marking the beginning of China's transformation from an independent sovereign state to a semi-feudal and semi-colonial state. From the Opium War to the demand for the cession of Hong Kong Island, the actions of the Western powers all reveal their purpose: to open the door to the eastern trading market through war, to carve up China and Asia through colonial rule, and to carry out economic aggression.
It can be said that the fall of Hong Kong was the beginning of the formal economic aggression of the Western powers. In the early forties of the 19th century, as soon as Britain forcibly occupied Hong Kong Island, it began to implement the free port system for Hong Kong, and the British Government also openly declared that no matter how many commercial rights and interests it plundered from China, it had no intention of monopolizing it by one country, but was willing to "enjoy it together" with other countries.
The British government's policy toward Hong Kong is influenced by its traditional foreign policy philosophy, namely pragmatism and moralism: it is not entirely for the sake of profit, nor is it purely moral, so the British government is committed to Hong Kong's prosperity and development while joining other countries in economic aggression against China. In 1776, classical British economists proposed that the suzerainty should abandon the laissez-faire idea of monopolizing colonial trade and "liberating" the colonies. This idea pointed out that for the sake of the long-term development of British industry and the comprehensive consideration of efficiency, it was not only necessary to implement a free trade and free port system for the colonies, but also should not monopolize the trade of the colonies.
Interference, monopoly and exploitation behind laissez-faire freedom
But this laissez-faire is not the same as the British government claims to be "the invisible hand is the best guide for our economy". In fact, after World War II, the intervention of the British government in the real estate market began to increase, because the income from land sales is directly related to the income of the British government, so the British government of Hong Kong intervened in the time, quantity and method of land sales, monopolized land resources and implemented lease ownership. The British government in Hong Kong stipulates that land resources are owned by the government, and the use of land by private enterprises must participate in land auctions to obtain land ownership for a limited period of time. In this way, scarce land resources become highly commercialized, allowing them to be fully utilized to generate maximum economic benefits.
In addition to the real estate market, the British government has also intervened to a large extent in the financial market. Because of the special status of the British-funded consortium, it affects the important decisions of the British government in Hong Kong and the economic lifeline of Hong Kong, the most representative of which is HSBC: "What is good for the colony is good for HSBC." In the financial markets, HSBC has a monopoly on half of the total local deposits. The British government of Hong Kong has also entrusted HSBC with some of the functions of the central bank, including currency issuance, bill clearing center, acting as an agent for Hong Kong and British fiscal revenue and expenditure, and entrusting the Hong Kong and British governments to intervene in the foreign exchange market.
This intervention has clearly brought significant economic benefits to the UK. The financial market was an important means for imperialism to monopolize and invade the old China in terms of economy, and HSBC was one of the "leaders".
During the period of free competition, capitalism was characterized by the export of commodities, and in the era of imperialism, it was characterized by the export of capital, and many of the capital exports of imperialist countries to old China were realized in the form of loans. According to the statistics from 1874 to 1927 alone, HSBC lended 82 foreign debts to the Chinese government, which brought about the rapid accumulation of initial capital and laid the foundation for continuous expansion through such means as high interest, large discounts, long tenors, foreign exchange rate differences, and the gap between the issuance of bonds and the actual discount.
Not only that, HSBC also participated in the monopoly of the international exchange rate and interfered in China's foreign trade. At that time, almost all of China's foreign trade was operated by foreign banks, and foreign settlements and other foreign remittances generated by import and export trade were handled by these banks, which was a solid foundation for imperialism to monopolize China's international exchange rate. HSBC occupies a very important position in the international exchange rate business and is the key player in the foreign exchange monopoly of imperialism in old China. On the one hand, HSBC monopolized foreign exchange on Chinese enterprises, and on the other hand, it provided preferential conditions and support to other imperialist foreign banks in terms of foreign exchange rates, import and export bills, etc., and united to form an "exploitation network".
HSBC's functions are also reflected in the absorption of deposits and the issuance of banknotes. HSBC absorbs deposits from Chinese at low interest rates and lends them to imperialist enterprises in China at low interest rates, expanding exploitation in China. In terms of issuing banknotes, HSBC has increased the amount of banknotes issued in its sphere of influence year by year without the consent of the Chinese government, seriously undermining China's sovereignty and plundering a large amount of material and wealth.
Lenin once made a profound analysis of the imperialist banks: "...... Great Britain, which controls most of the land of the earth, is rich in all countries, but it generates this wealth seldom by the labour of its own workers, but mainly by the exploitation of vast colonies, and by the great power of the British banks."
British interference in Hong Kong has never stopped
It has been 27 years since Hong Kong's return to the motherland. Having tasted the sweetness of huge benefits, Britain has not given up its interference in Hong Kong's affairs.
On the political front, the British government has always claimed that it has a "moral responsibility" to Hong Kong, and has been closely monitoring the operation of "one country, two systems" and the democratic process through Hong Kong's continuous transmission of "democratic" values to China. Since 1998, the Hong Kong Semi-Annual Report has been submitted to the British Parliament on a regular basis, and has continued to pay attention to basic issues such as finance, shipping and education in Hong Kong, and to conduct investigations and evaluations of Hong Kong affairs.
In terms of culture and education, because Britain cannot interfere too much in China in politics, Britain is very keen to promote its own values in culture and education, in an attempt to expand its influence in China. Through the establishment of the British Council in Hong Kong, the UK has continuously strengthened exchanges between the UK and Hong Kong higher education institutions, encouraging Hong Kong students to study in the UK, and the UK is now the first choice for Hong Kong students to study abroad.
In addition, Hong Kong has repeatedly used international public opinion to criticize the Chinese government on Hong Kong's human rights issues and universal suffrage. It also supports anti-China elements in Hong Kong by means of material inducements and brainwashing of values, and obstructs the process of rule of law in Hong Kong. Britain's "efforts" in these areas are not only detrimental to Hong Kong's prosperity and stability and the building of the legal system, but are also hindering the development of Sino-British relations.
Nevertheless, with the development and growth of the mainland's economic power, Britain is not strong enough to meddle in the mainland's internal affairs. However, for the sake of Hong Kong's continued prosperity and stability, the mainland still needs to remain vigilant against it. We still have a long way to go in terms of thoroughly implementing the Hong Kong National Security Law, removing ideological colonization, and promoting the development of Hong Kong's people's livelihood and economy.
"The History of the Development of Fujian Merchants, Hong Kong Volume", Su Wenjing
Outline of Modern Chinese Economic History, Jiang Liwen, Qiu Xinli
"The Return of '97 and Hong Kong's Economic Prospects" Zhong Yue