BEIJING RELATIONS WITH THE HONG-KONG SPECIAL ADMINISTRATIVE REGION - AN INFERENTIAL FRAMEWORK FOR THE POST-1997 ARRANGEMENT

This article explores the post-1997 relationships between Beijing and the Hong Kong Special Administrative Region from a central-local relations perspective. At the same time, inferences are made from the trends emerging from China's current dealing with Hong Kong during the transition period. The article posits an inferential framework adopting four areas of interaction: planning and coordination, fiscal arrangements, personnel management and policy implementation. It concludes that the transition and post-transition arrangements can be viewed as a gradual and incremental process of learning and mutual adaptation by both sides. Moreover, administrative decentralization in China will coexist with Beijing's penetrative capacity in exerting political control over Hong Kong. Yet, Beijing will continue to selectively allow autonomy of post-1997 Hong Hong as long as the expanded autonomy does not amount to producing a penetration crisis.