History of Hong Kong

There is evidence of fishing and farming settlements in the area dating back 2,000 years, but Hong Kong's history is generally documented from the 17th century, when the Manchus from the frigid northeastern regions ruled all China. Hong Kong's location near the mouth of the strategically important Pearl River made it a favored port of call for trading vessels - and the haunt of pirates and adventurers from around the globe. Although China regarded trade with foreigners as distasteful, it allowed the Portuguese to establish a colony in nearby Macau in the mid-1550s to trade in Chinese goods, and Guangzhou (also called Canton) on the Pearl River was opened to foreign traders in 1685. Uninterested in foreign goods, China thrived on exports of its teas, silks and porcelain.

The situation changed in the late 18th century when British traders discovered the Chinese would buy opium, which they imported from India. When the emperor tried to end the lucrative practice, Britain seized upon the issue to expand economic trade in the region, prompting the Anglo-Chinese War of 1839-42 (known as the Opium War). No match for Britain's warships, China reluctantly gave up Hong Kong island to the British in 1841. Other concessions in land and trading opportunities were wrested from China in other skirmishes. It subsequently was forced to cede the Kowloon Peninsula and scores of surrounding islands - roughly 90% of Hong Kong - but in 1898 successfully negotiated the transfer so that it was done as a 99-year lease. In 1997, when Hong Kong was transferred back to China as a Special Administrative Region (SAR), the Chinese government promised "one country, two systems." For the most part, it has kept its word. But Hong Kong has been losing some of its economic steam now that the Chinese have opened mainland China to a global economy. Where Hong Kong was once the exclusive gateway to trade with China, there are now many ports of entry. Some observers speculate that storied Shanghai or nearby Shenzhen, much cheaper places to do business, may seize Hong Kong's leadership role. The city also suffered from the outbreak of Severe Acute Respiratory Syndrome (SARS) in early 2003. Still, Hong Kong offers advantages unavailable in China's emerging economy, and it remains a vibrant example of British order and Chinese industriousness.