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Since Hong Kong's return to China in July 1997, the Chinese government has begun implementing its "one country, two systems" in the Hong Kong Special Administrative Region (HKSAR) arousing boiling international attention. Some are concerned about China's interference into the HKSAR's governance and even skeptical of any effective democratic development in Hong Kong under the "one country, two systems." Nevertheless, over the past 10 years, Hong Kong has gradually regenerated itself from once downcast and depressing period of development to moving towards stability, prosperity and improved democratic development with continuous political, economic, and social progresses. Under such circumstances, how would the HKSAR government devise a democratic system suitable for Hong Kong? Will the people of Hong Kong support the government's mechanisms under the existing political systems by adjusting themselves from British rule to the "one country, two systems" confinement? What impact and implication will the "one country, two systems" in Hong Kong have on China's counterpart Taiwan? This paper intends to explore both positive and negative impact of the "one county, two systems" on Hong Kong's democratic development since the return. Through an integration of pertinent democratic development and "one country, two systems" contentions, it attempts to probe into and analyze the signaling effect of the "one country, two systems" in Hong Kong's democratic development as well as the implications for Taiwan. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]

Under the One Country Two Systems concept, China, keeping its socialist system (with Chinese characteristics), allows Hong Kong?s capitalistic system and way of life to continue. The Hong Kong Special Administrative Region (HKSAR) is to exercise a ?high degree of autonomy?, with ?fifty years no change?. Deng Xiaoping, China?s paramount leader, who heralded China?s opening to the world in 1979, held that this could be a model to resolve international relations problems left over by history. In 2006, HK once again topped the Heritage Foundation?s annual index of economic freedom, for the twelfth year. Yet HKSAR has seen tensions, with half a million people demonstrating on 1 July 2003 against a draft security bill. The first HKSAR Chief Executive (CE) was so unpopular that he had to resign, and the second CE Donald Tsang was a senior civil servant left over from the British colonial days. He is quite popular in HK, and has the support of Beijing, and so is expected to be re-elected in 2007 for a full five-year term. As HK?s economy strengthens in 2006, social tensions are lower. But the overall question remains as the 1C2S concept as practised in HK is under challenge: has China managed HK?s return well or not? HKSAR will celebrate its tenth anniversary on 1 July 2007. The ten years under Chinese rule offers a glimpse into China?s foreign policy and how HK fits into China?s scheme of things as a rising global power. Much as China guards jealously its sovereignty over HK and fears HK is being used as a base of subversion by foreign interests, notably the US, HK is a matter of international concern. HK could be seen within the context of China?s international relations: is China undergoing a ?peaceful rise? or a threat to the international community, particularly to US interests? Since HK has been running an open economy, and as China is increasingly integrated into the international community, the interactions among the three levels ? the sub-state actor, the sovereign and the international community ? present opportunities as well as dilemmas. Specifically, the paper seeks to elucidate the origins of the 1C2S concept, to examine its application in HK thus far, and to identify the factors affecting its success (or failure). In fact, the 1C2S concept was designed in the first instance by China to re-unify the ?renegade? province of Taiwan. HK is supposed to demonstrate to Taiwan that all would be well under Chinese sovereignty. Yet, President Chen Siu-bian categorically stated that Taiwan is not HK. Beijing?s passage of the anti-succession law has rattled cross-straits relations, yet the visits by opposition leaders, and Beijing?s courtship of KMT leader Ma Ying-jeou represent a class united front play of Beijing to isolate Chen and raised hope for some kind of accommodation between Taiwan and the Mainland. The paper will conclude with a discussion on the implications of the HK experience for Taiwan. ..PAT.-Unpublished Manuscript [ABSTRACT FROM AUTHOR]

The article analyzes regional governance perspectives in Greater China. It explores the micro governance among the People's Republic of China (PRC), Taiwan and Hong Kong to show the modes of development shaped by their daily economic, trade, human and knowledge interactions. The author shows the catalyst of changes based on integration, interdependence, indifference and independence. The author argues that the deterioration of relations between Taiwan and the PRC was caused by many political as well as institutional factors.