Nevertheless, the British colony stands out as a phenomenal success story, outperforming even such paragons of economic virtue as Singapore, Taiwan and Korea. With a small, non-interventionist government, adherence to the rule of law, and a commitment to economic openness, Hong Kong's business environment is second to none. With the colony due to revert to Chinese rule in mid-1997, some investors worry that Beijing will abandon the economic model that has brought success to Hong Kong. However, China has pledged to keep Hong Kong's unique economic system intact, and observers are quick to point out that China has no incentive to undermine what will be its richest city by far. Hong Kong's success has made it a model for other countries to emulate.
Economic policy places greater emphasis on market forces than perhaps anywhere else in the world.
The government avoids imposing incentives, disincentives, entitlements or restrictions as a means of directing the economy according to a central plan. The civil service is small and efficient, and instances of corruption are rare. The tax system is admirably simple, featuring clear and easy documentation requirements. Tax rates are low, and foreign-owned ventures are granted national treatment. Hong Kong's extensive body of commercial law, based on the British system, provides effective enforcement of contracts and protection of property rights.