Vanderbilt Journal of Transnational Law


Ted Hagelin

First Page



This Article assesses the economic future of Hong Kong after reunification with China. After reviewing Hong Kong's economic history, this Article discusses Hong Kong's present economic situation, and both the positive and negative influences on its economic future. The author identifies China's self-interest in Hong Kong's continued economic prosperity as a positive factor for Hong Kong's economy. China's self-interest stems largely from the recognition that Hong Kong's economic failure will impact China's politics, economics, and foreign relations. Negative developments within China, however, could lead to a precipitous downturn in Hong Kong's economy. Negative developments include potential military and political crises, government corruption, and further deterioration of U.S.-China relations. The article concludes, however, that Hong Kong continues to offer a highly favorable business environment for international investors, especially for U.S. businesses. Furthermore, Hong Kong will continue to offer a more stable investment environment than many other countries in Asia, Latin America, and Eastern Europe.