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Competition and Competition Policy: Implications of Hong Kong’s Reversion to China
Author(s) -
Cheng Leonard K.,
Wu Changqi
Publication year - 2000
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/1468-0106.00103
Subject(s) - china , dominance (genetics) , competition (biology) , mainland china , position (finance) , economics , market economy , business , sovereignty , politics , political science , finance , law , ecology , biochemistry , chemistry , biology , gene
The paper explores how Hong Kong’s new status as China’s Special Administrative Region (SAR) may affect the competitiveness of the industries and the relative position of companies owned by non‐Hong Kong investors. The conclusion is that mainland Chinese firms will play an increasingly more important role in Hong Kong’s economy and British firms will lose their dominance further. This does not, however, indicate a return to unequal competition in favor of firms from the sovereign country, but the beginning of a period of greater competition by all firms in Hong Kong, whether they be local or non‐local. There is a risk that governmental and semi‐governmental corporations of the SAR and other Chinese governments may use their official and semi‐official status to tilt the playing field in their favor, but appropriate competition law can address this concern.