Theme in Depth: Hong Kong–China Interactions

Foundation

This topic uses a timeline to trace Hong Kong's interactions with China since the late nineteenth century: entrepôt port, revolutionary base, wartime supply depot and haven, postwar industrialiser, bridge of capital and technology after 1978, and economic hub under 'one country, two systems' after the handover.

For:Secondary 6 History · Unit:Theme A: Modernisation and Transformation in Twentieth-Century Asia · Lesson 1 of 6 in the learning path

After this lesson, you can:
  • From the late nineteenth century to the mid-twentieth Hong Kong supported China's foreign trade as an entrepôt, while the Taiping Rebellion (1851-1864) and other upheavals brought waves of migrants adding labour and capital
  • Hong Kong was closely tied to the 1911 Revolution: Sun Yat-sen studied at the Hong Kong College of Medicine for Chinese (forerunner of the University of Hong Kong), the Revive China Society placed its headquarters in the city in 1895, and the city was a base for revolutionary publicity and fund-raising
  • During the War of Resistance Hong Kong was a supply depot and a haven for refugees until it fell in December 1941; after the war it industrialised, while the mainland kept supplying food, raw materials and water (the Dongjiang scheme from 1965)
文體:歷史敘事說明文有聲朗讀

文體小知識:歷史敘事說明文——按時序敘述香港由十九世紀末轉口埠到回歸後經貿樞紐的角色演變,並輔以時間軸分析,訓練以史實說明兩地互動的能力。

歷史History

§Text Passage

1In the late nineteenth century Hong Kong, with its deep-water harbour and free-port policy, grew into a leading entrepôt of the region: Chinese silk, tea and other goods were shipped out through the port, while foreign machinery and manufactured goods entered China through it, so the city underpinned China's foreign trade. In the same period the Taiping Rebellion (1851-1864) and other upheavals on the mainland drove wave after wave of migrants south to Hong Kong; the population swelled, bringing labour, capital and business networks.

2Hong Kong was closely tied to the 1911 Revolution. As a young man Sun Yat-sen studied in Hong Kong at the College of Medicine for Chinese, the forerunner of the University of Hong Kong, and his revolutionary thinking was partly shaped by what he saw in the city. In 1895 the headquarters of the Revive China Society was set up in Hong Kong, which became an important base for propaganda, fund-raising and the planning of uprisings; its revolutionary newspapers and organisations were remarkably active and contributed much to the success of the 1911 Revolution.

3After full-scale war broke out with Japan in 1937, Hong Kong became a transit point for war materials: medicines, fuel and military supplies donated by overseas Chinese and by international relief bodies were landed in the city and then railed and trucked into the interior in support of the war effort. At the same time crowds of refugees fled to Hong Kong, and the city served as a haven. In December 1941 Hong Kong itself fell to Japan and these roles were interrupted, yet the bond between the city and the mainland was never severed.

4After the war Hong Kong set out on the road of industrialisation. In the early 1950s entrepôt trade was cramped by the international situation, and the city turned instead to manufacturing: textile, garment, plastics and electronics factories spread across the urban area, and their products were exported in large volumes to Europe and North America, transforming Hong Kong from an entrepôt into an industrial city. Meanwhile the mainland long supplied food, raw materials and water at stable prices — the Dongjiang water scheme began feeding Hong Kong in 1965 — so economic ties between the two sides continued in the form of daily necessities.

5When China launched reform and opening-up in 1978, Hong Kong businessmen were the first to invest north of the boundary, concentrating their factories in the Pearl River Delta and creating the 'front shop, back factory' division of labour: Hong Kong, the shop, took orders and handled design, finance and marketing, while the mainland, the factory, carried out production. Since the handover of 1997 Hong Kong has kept its free-port status and its role as an international financial centre under 'one country, two systems'; in 2003 the mainland and Hong Kong signed CEPA, knitting the two economies still closer together and keeping the city the bridge between China and the world.

1Summary 重點摘要

This topic uses a timeline to trace Hong Kong's interactions with China since the late nineteenth century: entrepôt port, revolutionary base, wartime supply depot and haven, postwar industrialiser, bridge of capital and technology after 1978, and economic hub under 'one country, two systems' after the handover.

2Vocabulary cards Vocabulary

E
Entrepôt轉口埠

A port whose main function is the transshipment of goods; from the late nineteenth century to the mid-twentieth Hong Kong played this role in support of China's foreign trade.

T
Taiping Rebellion太平天國

The large-scale civil war in southern China from 1851 to 1864; the upheaval drove many residents to settle in Hong Kong, bringing labour and capital.

R
Revive China Society興中會

The revolutionary society founded by Sun Yat-sen in 1894; its headquarters was later set up in Hong Kong, and it plotted uprisings aimed at overthrowing the Qing dynasty.

T
The 1911 Revolution辛亥革命

The revolution of 1911 that overthrew the Qing dynasty, ended imperial rule and founded the Republic of China; Hong Kong served as a key base for its propaganda and fund-raising.

W
Wartime haven戰時庇護所

During the War of Resistance Hong Kong sheltered large numbers of refugees fleeing the fighting and transshipped relief supplies, serving humanitarian and logistical functions.

I
Industrialisation工業化

The shift of Hong Kong from entrepôt trade to manufacturing from the 1950s, as textile, garment, plastics and electronics industries expanded rapidly and exported to Western markets.

R
Reform and Opening-up改革開放

The programme of economic reform and opening to the outside world launched by China in 1978; Hong Kong businessmen led the way in investing in mainland factories and spurred the industrialisation of the Pearl River Delta.

F
Front-shop-back-factory model前店後廠

The division of labour after 1978: Hong Kong as the 'front shop' took orders and handled design, finance and marketing, while the Pearl River Delta as the 'back factory' carried out production.

C
CEPA《內地與香港關於建立更緊密經貿關係的安排》

The Closer Economic Partnership Arrangement signed between the mainland and Hong Kong in 2003, giving Hong Kong goods and services better access to the mainland market and deepening economic integration.

O
One Country, Two Systems一國兩制

The arrangement under which Hong Kong, after the 1997 handover, retains its previous economic system and way of life, keeping its free-port status and its role as an international financial, trading and shipping centre.

3Step by step Steps

  1. Step 1: Build the timeline frameworkTo analyse Hong Kong's interactions with China, first build a clear timeline dividing the century and more into four stages: first, the entrepôt age from the late nineteenth century to the mid-twentieth; second, the era of the 1911 Revolution and the War of Resistance; third, the industrialising decades of the 1950s to 1970s; fourth, the period from reform and opening-up in 1978 to the handover and after. For example, in an answer list the start and end years and the key events of each stage before analysing how Hong Kong's role changed, and the argument will be orderly and easy for the marker to follow.
  2. Step 2: Explain the entrepôt role and the migrant influxWith its free-port policy, Hong Kong had become the region's chief entrepôt by the late nineteenth century: most goods exported from the mainland and most foreign manufactures entering it passed through the port, and the city earned shipping, warehousing and financial income from the trade. For example, silk and tea from the Yangtze and Lingnan regions were first gathered in Hong Kong and then transshipped to Europe and America. In the same period the Taiping Rebellion (1851-1864) and later upheavals drove many residents to settle in Hong Kong, adding labour as well as capital and business experience and so feeding the growth of the entrepôt trade.
  3. Step 3: Analyse the link with the 1911 RevolutionFrom 1887 to 1892 Sun Yat-sen studied at the Hong Kong College of Medicine for Chinese, the forerunner of the University of Hong Kong, and what he saw in the city fed his revolutionary thinking. In 1895 the headquarters of the Revive China Society was set up in Hong Kong, and the revolutionaries used the city's closeness to Canton, its freer communications and its lively associations to spread propaganda, raise funds and plot uprisings. For example, an answer can point out that Hong Kong was a base for revolutionary publicity and organisation, and that the success of the 1911 Revolution owed much to the room for expression, the money and the logistical support the city provided.
  4. Step 4: Grasp wartime transit and refugeAfter full-scale war broke out in 1937, many of China's coastal outlets came under threat and Hong Kong became a vital transit point: medicines, fuel and military supplies donated by overseas Chinese and by international relief bodies were landed in the city and then carried into the interior. For example, at that time shiploads of supplies reached Hong Kong's docks and warehouses and then went north by rail and road to support both front and rear. At the same time great crowds of refugees fleeing the fighting poured into Hong Kong, and the city served as a haven; only when it fell to Japan in December 1941 were these roles of transit and refuge forcibly interrupted.
  5. Step 5: Explain postwar industrialisation and market tiesRight after the war Hong Kong quickly revived its entrepôt trade, but in the early 1950s that business was cramped by the international situation, and the city turned to manufacturing: textile, garment, plastics, toy and electronics industries expanded rapidly, selling far into Europe and America, and Hong Kong was transformed from an entrepôt into an industrial city. For example, in the 1950s and 1960s large numbers of spinning mills and garment factories opened in the new industrial areas of Tsuen Wan and Kwun Tong, absorbing a vast workforce. Meanwhile the mainland kept supplying food, raw materials and water at stable prices — the Dongjiang scheme began feeding the city in 1965 — so the economic relationship continued in the form of daily necessities.
  6. Step 6: Dissect the front-shop-back-factory division of labourWhen China launched reform and opening-up in 1978, Hong Kong businessmen seized the chance to invest north of the boundary, above all by building factories in the Pearl River Delta, and the 'front shop, back factory' pattern took shape: Hong Kong, the front shop, took orders and handled design, quality control, finance and marketing; the delta, the back factory, carried out the land- and labour-intensive production. For example, in the garment trade a Hong Kong firm would take orders from overseas buyers, have the goods made in Shenzhen or Dongguan, and export them through Hong Kong at far lower cost, while local manufacturing gradually gave way to trading, logistics and financial services.
  7. Step 7: Assess the post-handover economic role and CEPAOn 1 July 1997 Hong Kong returned to China, and under 'one country, two systems' it kept its former economic system — the free port, low and simple taxes and the free flow of funds — and its standing as an international financial, trading and shipping centre. In 2003 the mainland and Hong Kong signed the Closer Economic Partnership Arrangement (CEPA), under which Hong Kong goods progressively enjoyed tariff-free entry and services gained wider market access. For example, after CEPA the city's legal, accounting and financial services found it easier to enter the mainland market, while Hong Kong remained the first choice for mainland firms raising capital and going global.

4Diagrams Diagrams

香港與內地:血濃於水的連繫 HK–China link地理相連接壤深圳·一河之隔高鐵 48 分鐘到廣州東江水供應香港文化同源同文同種同節日粵語普通話相通傳統習俗一脈相承經濟相依食物副食品內地來內地遊客來港旅遊港商內地設廠投資回歸 1997:一國兩制——香港係中國嘅特別行政區機遇:大灣區一小時生活圈——讀書就業創業空間大咗好多
Fig. 1: HK–China link

5Worked example Example

Data-response practice: here is a timeline of Hong Kong-China interactions — A: from the late nineteenth century to the mid-twentieth, Hong Kong supported China's foreign trade as an entrepôt, while the Taiping Rebellion and other upheavals brought waves of migrants; B: in 1895 the headquarters of the Revive China Society was set up in Hong Kong, and Sun Yat-sen had studied at the College of Medicine for Chinese, forerunner of the University of Hong Kong; C: after war broke out in 1937 Hong Kong became a transit point for supplies and a haven for refugees; D: after 1978 the 'front shop, back factory' pattern emerged and CEPA was signed in 2003. Identify Hong Kong's role at each stage (entrepôt, haven, bridge of capital and technology) and analyse, along the timeline, how that role changed.

  1. Read the question: it asks you first to identify the role at each stage (entrepôt, haven, bridge of capital and technology) and then to analyse the direction of change along the timeline; both parts must be answered, following the order A, B, C and D
  2. Stage A: Hong Kong was both entrepôt and haven — its transshipment trade supported China's imports and exports, while migrants fleeing the Taiping Rebellion added manpower and capital, the two reinforcing each other
  3. Stage B: Hong Kong was a revolutionary base — Sun Yat-sen studied there and the Revive China Society placed its headquarters in the city, which supplied publicity, funds and organisational networks, support at the level of ideas and organisation
  4. Stage C: Hong Kong was a supply depot and a haven — relief goods were transshipped through the city into the interior while refugees from the fighting were sheltered, a role weighted towards humanitarian and logistical support
  5. Stage D: Hong Kong was a bridge of capital and technology — Hong Kong investment drove the delta's industrialisation and CEPA knitted the markets closer; conclude that the city's role evolved from trade transit and humanitarian refuge into a hub of capital, technology, management and professional services, echoing the course of China's modernisation
  6. Answer: Along the timeline, Hong Kong's role passed through three great changes. At stage A (late nineteenth century to the mid-twentieth) it was entrepôt and haven at once: the goods of the mainland and the manufactures of the West passed through its port in support of China's foreign trade, while migrants fleeing the Taiping Rebellion and later upheavals brought labour and capital. At stage B (around 1895) it was a revolutionary base: Sun Yat-sen studied at the College of Medicine for Chinese, forerunner of the University of Hong Kong, the Revive China Society set up its headquarters in the city, and Hong Kong gave the 1911 Revolution publicity, funds and organisation. At stage C (1937-1941) it was a transit point and a haven, through which relief supplies reached the interior and in which refugees found shelter. At stage D (after 1978) it became a bridge of capital and technology: under the front-shop-back-factory pattern the capital, technology and managerial know-how of Hong Kong firms flowed into the Pearl River Delta, and CEPA in 2003 bound the two markets closer still. The city's role thus rose from trade transit and humanitarian refuge to a hub of capital, technology and professional services — a shift that echoed, step for step, the course of China's modernisation.

6Common mistakes Mistakes

✗ Assuming Hong Kong was merely a British colony with no part in the course of modern Chinese history.
✓ For over a century Hong Kong has been the bridge between China and the world: entrepôt trade, revolutionary activity, wartime support and investment after 1978 all bound it closely to the mainland.
✗ Writing that the headquarters of the Revive China Society was in Canton or Honolulu.
✓ The society was founded in Honolulu in 1894, and its headquarters was set up in Hong Kong in 1895; the city was likewise the base for revolutionary publicity and fund-raising.
✗ Believing that Hong Kong's industrialisation from the 1950s was driven by British government sponsorship.
✓ Industrialisation was led above all by local firms adapting after entrepôt trade was cramped; the capital, skills and labour brought by migrants, together with entrepreneurial flexibility, were the decisive factors.
✗ Thinking that under 'front shop, back factory' Hong Kong did the producing while the mainland did the selling.
✓ It is the other way round: the 'front shop' is Hong Kong, taking orders and handling design, finance and marketing; the 'back factory' is the Pearl River Delta, carrying out land- and labour-intensive production.
✗ Mistaking CEPA for a multilateral WTO agreement, or getting the year of signature wrong.
✓ CEPA is a bilateral closer economic partnership arrangement signed between the mainland and Hong Kong in 2003 — a free-trade arrangement between the two places, not a multilateral international treaty.

7Quick check Quick check

Q1What role did Hong Kong play in China's foreign trade from the late nineteenth century to the mid-twentieth? Give one example.

Q2At which institution in Hong Kong did Sun Yat-sen study, how is it related to the University of Hong Kong, and in which year was the Revive China Society's headquarters set up in Hong Kong?

Q3What two functions did Hong Kong perform during the War of Resistance (1937-1941), and when were they interrupted?

Q4In the front-shop-back-factory model, what do the 'shop' and the 'factory' refer to, and which tasks does each take on?

Q5In which year was CEPA signed, and how has it deepened economic ties between Hong Kong and the mainland?

8Recap Recap

  • From the late nineteenth century to the mid-twentieth Hong Kong supported China's foreign trade as an entrepôt, while the Taiping Rebellion (1851-1864) and other upheavals brought waves of migrants adding labour and capital
  • Hong Kong was closely tied to the 1911 Revolution: Sun Yat-sen studied at the Hong Kong College of Medicine for Chinese (forerunner of the University of Hong Kong), the Revive China Society placed its headquarters in the city in 1895, and the city was a base for revolutionary publicity and fund-raising
  • During the War of Resistance Hong Kong was a supply depot and a haven for refugees until it fell in December 1941; after the war it industrialised, while the mainland kept supplying food, raw materials and water (the Dongjiang scheme from 1965)
  • After reform and opening-up in 1978 the front-shop-back-factory pattern made Hong Kong a bridge of capital, technology and management, and the local economy shifted to trade, logistics and financial services
  • Since the 1997 handover Hong Kong has kept its free-port status and financial-centre role under 'one country, two systems'; CEPA in 2003 bound the two economies closer, and the city remains the bridge between China and the world

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