But before Hong Kong returned, Britain and China reached an agreement to introduce “one country, two systems.” Faced with increased openness by the government of the People`s Republic of China and economic reforms on the continent, Margaret Thatcher, then British Prime Minister, sought the agreement of the People`s Republic of China on the continuation of the British presence on the territory.  The Chinese government also stated in the document its basic policy towards Hong Kong. In accordance with the “one country, two systems” principle agreed between the United Kingdom and China, the Hong Kong Special Administrative Region (HKSAR) would not exercise the socialist system in mainland China, and the Hong Kong capitalist system and its way of life would remain unchanged for 50 years until 2047. The joint declaration states that these fundamental policies are enshrined in Hong Kong`s constitution. Opposition members in the Hong Kong Assembly say they have tried to take a stand against what many in Hong Kong see as a balance between Beijing`s freedoms and institutional controls, despite the promise of a high degree of autonomy. PM denounces new security law and promises tailored visas for 2.9 million Hong Kongers The National Security Act punishes what China generally defines as subversion, secession, terrorism and collusion with foreign forces with up to life in prison. Following the Asian financial crisis of 1997, measures were taken in Hong Kong with the full cooperation of the Central Chinese Government. This did not mean that the Chinese government dictated what to do and therefore always followed the points of the declaration.  Mainland China and Hong Kong are economically complementary. However, their political differences remain deeply entrenched. The centuries-old separation between the People`s Republic of China and Hong Kong has created voids that are not easy to fill, even if they are officially a country.
Before Hong Kong and mainland China can truly unite, they must overcome considerable differences. This group was a connection organ, not a power organ, where each party could send up to 20 support coworkers. It is expected to meet at least once a year at each of the three sites (Beijing, London and Hong Kong). It was established in Hong Kong on July 1, 1988. It should also help HKSAR maintain and develop economic and cultural relations and conclude agreements on these issues with the relevant states, regions and international organisations, and could therefore create specific sub-groups. Between 1985 and 2000, the Joint Liaison Group held 47 plenary sessions, 18 in Hong Kong, 15 in London and 14 in Beijing. To understand the root of Hong Kong`s separation from the mainland, we must return to the opium wars between Great Britain and China (1839-1860). During these military and trade conflicts, China was forced to cede Hong Kong Island and part of Kowloon to Britain. In 1898, Britain negotiated a major extension of the Hong Kong colony and signed a 99-year lease with China. The lease ended in 1997, when Britain returned Hong Kong to China as a Special Administrative Region (SAR) called Hong Kong Special Administrative Region of the People`s Republic of China (HKSAR).
Simon Keswick, president of Jardine Matheson and Co., said they would not retire from Hong Kong, but would create a new holding company in Bermuda.  The People`s Republic of China regarded this as another conspiracy of the British.