Competition and Competition Policy: Implications of Hong Kong's Reversion to China

Pacific Economic Review, Vol. 5, No. 2, June 2000

Posted: 30 Jul 2000

See all articles by Leonard K.H. Cheng

Leonard K.H. Cheng

Hong Kong University of Science & Technology (HKUST) - Department of Economics

Changqi Wu

Hong Kong University of Science & Technology (HKUST) - Department of Economics

Abstract

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.

JEL Classification: L50, P21

Suggested Citation

Cheng, Leonard K.H. and Wu, Changqi, Competition and Competition Policy: Implications of Hong Kong's Reversion to China. Pacific Economic Review, Vol. 5, No. 2, June 2000, Available at SSRN: https://ssrn.com/abstract=236302

Leonard K.H. Cheng (Contact Author)

Hong Kong University of Science & Technology (HKUST) - Department of Economics ( email )

Clear Water Bay
Kowloon, Hong Kong
China

Changqi Wu

Hong Kong University of Science & Technology (HKUST) - Department of Economics ( email )

Clear Water Bay
Kowloon, Hong Kong
China

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