Hong Kong - Geography
A very large part of the population lives on the island of Hong Kong (or
Victoria, 80 km2) and in Kowloon (47 km2) on the
mainland. The two areas are among the most densely populated in the world. In
addition, the New Territories (975 km2, also on the mainland) as
well as 235 sparsely populated or uninhabited islands. The urban area itself is
made up of Kowloon and the north side of the island, but new cities have sprung
up in the New Territories, which now accommodate a quarter of the
population. The south side of Hong Kong has beaches, and some traditional
fishing villages where residents live on houseboats can still be found.
The climate is tropical, but the winters are relatively cool due to
northeast winds from mainland China. Frost can occur on the highest mountain
peaks. The summers are hot and rainy with seasons for typhoons from July to
September. The terrain is mountainous and was originally forested; now only 10%
of the area is forest, but up to half of the territory is designated as nature
reserves. Agriculture, especially poultry and pig farming, as well as
horticulture and fish ponds, cover only 7%, and the food supply to the large
population, like the water supply, is based on imports from China.
The population
The population is predominantly Chinese, who immigrated through the
1900's. The white minority, especially Britons and other immigrants from
the Commonwealth, make up only 2%. According to
AllCityPopulation.com,
population growth has been fluctuating,
marked by waves of immigration, while the birth rate is at the country level. In
1995, 40% of the population was born outside Hong Kong. In connection with the
transition to Chinese rule, there has been a lot of emigration.
Business
The business community is completely dominated by service industries with the
financial sector, shipping and trade (re-exports to and from China) as key
sectors. With almost 22 million. tourists per year (2004), of which a sharply
increasing number of affluent Chinese from the People's Republic, now over half
of the tourists, tourism has become increasingly important.
The industry is concentrated on consumables such as clothing, electronics,
watches and plastic products. Among other things. produced about a quarter of
the world's radios in Hong Kong. The limited heavy industry sector is engaged in
shipbuilding and repair, aircraft manufacturing and steel rolling. All raw
materials are imported and 90% of industrial production is exported. Since the
1980's, the opening of free zones on the Chinese mainland has meant that
many companies have relocated here. Employment of Hong Kong-funded companies in
China is now several times greater than in the remaining Hong Kong industry.
One of the assets of modern Hong Kong is the first-class
infrastructure. There are road tunnels under the harbor, and the harbor's
container terminal is among the busiest in the world. From Kowloon there is a
railway to Guangzhou (Canton). The city's new airport was inaugurated in 1998 on
the island of Lantau 30 km west of the city districts; in 2005, it had more than
DKK 40 million. traveler. A newly built express metro connects the airport with
the city center.
Hong Kong - language
Until 1997, English and from 1974 also Chinese were the official languages
in Hong Kong, and both languages are guaranteed both in the British-Chinese
agreement of 1984 and in The Basic Law of 1990 continued official status after
Hong Kong's incorporation into China until 1997. Until then, English has been
the dominant language at higher levels of government, in law and banking,
international trade and tourism, while Chinese, in practice Cantonese, is the
mother tongue of most and the common language of almost everyone in the
colony; it is written as in mainland China, however, traditional, non-simplified
characters are used. Bilingualism and trilingualism are widespread. Since 1984,
there has been a growing interest in learning standard Chinese, but Cantonese
still dominates in everyday life.
Hong Kong - Economy
Hong Kong is one of Asia's richest societies. As one of Asia's "four little
tigers", it experienced significant industrial growth after World War II, but in
recent years, some industry has moved to production zones in southern
China, and over 85% of the economy now comes from the service sector. Since
World War II, Hong Kong has pursued a liberal policy that has sought minimal
public intervention in the economy, and the area is considered to have the
world's most unregulated economy. Public expenditure accounts for less than 20%
of GDP, which includes has resulted in a very low tax burden. Thus, only
approximately 25% of the population tax. Hong Kong is also a duty-free area, and only
a few goods, such as spirits, tobacco and cars, are subject to taxes.
The combination of this non-interference policy and Hong Kong's important
strategic location has led many foreign companies to establish themselves in the
former crown colony, which has also developed into one of the world's financial
centers. The importance of the financial sector is illustrated by the fact that
it employs almost 20% of the workforce.
Since 1983, the currency, the Hong Kong dollar, has been pegged to
the dollar at a rate of 7.8 to 1. As Hong Kong does not have a central bank (the
money is issued by three commercial banks and since 1994 also by the Bank of
China), the exchange rate is guaranteed by the government. this purpose has
one of the world's largest foreign exchange reserves. Hong Kong has no
restrictions on the mobility of capital across borders, which, compared to the
fixed exchange rate against the dollar, in principle means that Hong Kong's
monetary policy is determined by the United States.
Economic policy supports Hong Kong's lifeline, foreign trade, which in 2005
accounted for as much as 334% of the country's GDP. The large share is partly
due to the fact that Hong Kong is without raw materials and therefore completely
dependent on imports from other countries, and partly because Hong Kong, in step
with China's gradual opening, has developed into a center for trade between the
West and China. A large part of Hong Kong's foreign trade thus takes the form of
re-exports to/from China.
Uncertainty regarding developments in the country after China's takeover of
Hong Kong on 1 July 1997 led to a transition to emigration and the relocation of
a number of foreign companies. However, the legislation relating to the transfer
has made it possible to continue the current economic policy; the area has the
status of Special Administrative Region, has far-reaching autonomy and is
financially independent of the government in Beijing. It has thus been agreed
that the private capitalist system should be maintained for 50 years, that the
Hong Kong dollar will continue to be the currency of the region, and that Hong
Kong will remain a duty-free area and maintain its position in international
organizations under the name Hong Kong China.
In the period after the transfer, Hong Kong was hit by a series of crises,
which, however, are not attributed to the transition itself. In connection with
the Asian crisis in 1997, property values fell by approximately 50%, and GDP fell 5%
in 1998. Growth soon resumed, but was halted by the global downturn in 2001. The
outbreak of SARS in 2003 also set limits, but from the same year relaxed travel
rules led to a large influx of tourists from the rest of China; GDP growth was
approximately 7% in 2005. A deflationary period of almost six years ended in 2004.
Since the Asian crisis, unemployment has been approximately 5%.
Hong Kong's largest trading partners are China, the United
States and Japan (2005). Denmark's exports to Hong Kong in 2005 amounted to DKK
4.1 billion. DKK, while imports from there amounted to 3.0 billion. The sale of
mink fur is by far the most important Danish export product. Imports mainly
consist of clothing, IT and office equipment.
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