HONG KONG China ceded Hong Kong Island to Britain in 1842. Mainland territories were added later. Its six million residents, most of them ethnic Chinese, have built a vigorous export economy based on textiles, clothing, electronics, and toys.
Most products go to the U.S. and China.
Fears that Chinese rule will overturn capitalism and democratic freedoms were heightened after the military crackdown in Beijing in 1989, accelerating the flight of people and funds from Hong Kong.