THE ROLE OF SPECIAL ADMINISTRATIVE REGIONS IN THE ECONOMIC INTEGRATION OF MAINLAND CHINA AND HONG KONG

Wang Jiangang

Introduction: The Special Administrative Regions (SAR) play a key role in the economic integration of mainland China and Hong Kong. The present study is aimed at studying the mechanisms and effects of this integration in the context of the socio-economic development of these territories. Materials and methods: The work uses an integrated approach, including the analysis of statistical data on key economic indicators of the SAR and mainland China for the period from 1997 to 2023, as well as the study of the regulatory framework governing their interaction. The methods of comparative analysis, economic and mathematical modeling and expert assessments were used. Results: It was found that the creation of the Hong Kong and Macao SAR contributed to the growth of mutual trade with mainland China by an average of 8.2% annually. The ATS have become the main recipients of Chinese investments (up to 70% of FDI), as well as key offshore centers for mainland Chinese companies. Integration effects resulted in a 3.1-fold increase in the GDP of the SAR, the creation of 2.6 million new jobs, while the share of high-tech services in the structure of their economies increased to 38%. Some negative effects have also been identified, including an increase in property stratification and a decrease in the real incomes of low-skilled workers in the SAR. Based on the results obtained, a number of recommendations for optimizing integration processes are proposed.

Keywords:special administrative regions, economic integration, mainland China, Hong Kong, investment, foreign trade, GDP, socio-economic effects.