While I now work in the finance and technology sectors, I majored in law and began my career as a mergers and acquisitions lawyer. A few years ago, I finished my doctoral degree in Hong Kong law (real estate law and economics), which gave me insights into Hong Kong’s fascinating legal system — a common law jurisdiction which is part of a country that practices a different legal system.

Hong Kong is a special administrative region of China, and the relations between the Hong Kong Special Administrative Region and the Chinese mainland are governed by the “one country, two systems” principle.

When the British arrived in Hong Kong in 1841, they did not acquire the whole of Hong Kong in perpetuity. Hong Kong Island was ceded by the Qing Dynasty (1644-1911) to Britain in 1842 under the Treaty of Nanking; part of the Kowloon Peninsula was ceded to Britain in 1860 under the Convention of Peking; and the New Territories were leased to Britain for 99 years in 1898. The continuation of British administration after 1997 (not only in the New Territories) would not have been acceptable to China in any form, since Hong Kong was taken by the UK through unequal treaties.

Following the 1984 Sino-British Joint Declaration, Hong Kong returned to China in 1997 under the “one country, two systems” principle, which is the cornerstone of Hong Kong’s status within China. Under this principle, Hong Kong can enjoy its distinct political, socioeconomic and legal arrangements under a “one country” framework for a period of 50 years, without change.

The considerable success of “one country, two systems” is acknowledged by most, and Hong Kong engages with Beijing on the basis of a shared goal of working toward the betterment of the nation.

The legal system of the Hong Kong SAR of the People’s Republic of China is based on the principle of the rule of law and underpinned by an independent Judiciary, which are the cornerstones of the city’s criminal judicial system.

Meanwhile, the constitutional framework for Hong Kong’s legal system is provided by the Basic Law enacted by the National People’s Congress of the People’s Republic of China in accordance with Article 31 of the Constitution of the People’s Republic of China. The Constitution and the Basic Law together form the constitutional basis of the HKSAR.

When it comes to the Judiciary, as prescribed in the Basic Law, the HKSAR has been authorized by the National People’s Congress to exercise independent judicial power, including the power of final adjudication. It has also been stated in express terms that the courts of the HKSAR shall exercise judicial power independently, free from any interference. Members of the Judiciary are immune from legal action and interference in the performance of their judicial functions. As reflected in their judicial oath, in exercising their judicial power, judges are constitutionally required to determine and handle cases strictly in accordance with the law and legal principles.

Related to this, in January 2023, speaking at the ceremony to formally open the legal year, Chief Justice Andrew Cheung Kui-nung defended the independence of the Judiciary in Hong Kong amid international criticism.

Cheung said, “Whether as designated judges under the Hong Kong National Security Law or not, they have all faithfully applied the law to the best of their ability, in accordance with the evidence presented before them.”

Hong Kong can still look forward to a bright future as one of the world’s most important financial hubs, and one of the cornerstones of its present success and brilliant future is its legal system and its Judiciary

The reason why I am mentioning all these facts is because of Jimmy Lai Chee-ying’s ongoing national security trial. I have read commentaries by several Western commentators implying or even stating that there is no proper rule of law in Hong Kong, or that its legal system is somewhat flawed, or even that its Judiciary is not really independent. Such criticisms have existed for years but drastically increased after the enactment of the National Security Law for Hong Kong in June 2020.

However, while Hong Kong’s legal system may not be perfect (perfection does not exist; as Salvador Dali said, “Have no fear of perfection — you’ll never reach it”), it is in a very sound situation.

The World Justice Project, which describes itself as an “independent, multidisciplinary organization working to create knowledge, build awareness, and stimulate action to advance the rule of law worldwide”, has published annually its “Rule of Law Index”, which is the world’s leading source for original, independent data on the rule of law. The WJP defines the rule of law as a “durable system of laws, institutions, norms, and community commitment that delivers: accountability, just laws, open government, and accessible justice”.

Hong Kong has consistently ranked high in the WJP’s Rule of Law Index; it was ranked at 23rd in 2023 (out of the 142 places surveyed), higher than the US at 26th place when it comes to the rule of law.

Regionally, Hong Kong ranked sixth out of 15 jurisdictions in East Asia and Pacific in 2023. The region’s top performer was New Zealand (ranked eighth out of 142 globally), followed by Australia and Japan.

Furthermore, Hong Kong’s legal system is also very strong when it comes to alternative dispute resolution. Over the years, the Department of Justice of the HKSAR has made every effort to enhance Hong Kong’s status as a leading center for international legal and dispute resolution services in the Asia-Pacific region, and a significant number of well-respected international institutions have chosen to make Hong Kong their first global location outside their home jurisdictions, fostering Hong Kong’s development as one of the leading international legal and dispute resolution-services hub in the Asia-Pacific region and beyond.

To sum up, the rule of law in Hong Kong remains solid, and its judicial system remains independent. While concerns arose when the NSL was enacted, the truth is that Hong Kong’s rule of law situation remains remarkably sound. Hong Kong can still look forward to a bright future as one of the world’s most important financial hubs, and one of the cornerstones of its present success and brilliant future is its legal system and its Judiciary.

The author is a fintech advisor and researcher. He holds a Master of Business Administration and a doctorate in Hong Kong real estate law and economics. He has worked as a business analyst for a Hong Kong publicly listed company.

The views do not necessarily reflect those of China Daily.