A friend of mine used to say that the Communist Party slogan about Hong Kong- "one country, two systems"- got it exactly backwards. Hong Kong has a different language, currency, customs , and legal system- in short, it's a different country. But since both China and Hong Kong practiced a similar form of authoritarian capitalism, the more accurate variation to the slogan is "two countries, one system".
Of course, this joke doesn't go over particularly well with the Chinese, for whom the return of Hong Kong was a significant source of national pride. But it does underscore the ambiguity of Hong Kong's relationship to the mainland. On paper, the rules are fairly clear. China has jurisdiction over Hong Kong's defense and foreign policy, while all else in Hong Kong is to remain the same through 2047.
To the uninitiated, Hong Kong and China are very different- as even a quick hop over the border from Shenzhen will reveal. Hong Kong has a well-deserved reputation for being apolitical and business-minded, a tax shelter filled with shopping malls and countless dim sum joints. While China endured great political convulsions during the Maoist era, Hong Kong simply carried on as before, running as efficiently as a sewing machine. The fact that the territory's highest political officer is called "chief executive" further reinforces its image as a corporation masquerading as a city.
Yet despite this image, Hong Kongers are decidedly not apathetic about their situation. Every June 4th since 1989, thousands have gathered to mourn the victims of Beijing's Tiananmen Square massacre, displaying a freedom of expression that their mainland cousins can only envy. Many more have protested recently over the appointment of Leung Chun-ying as Chief Executive, a reminder that the lack of democracy has not gone unnoticed. Even the South China Morning Post, once an emblem of Hong Kong's cherished press freedom, has recently come under attack for a ham-handed, politically motivated cover up.
All in all, there's an underlying sense that the Sino-British agreement underpinning Hong Kong's status may be increasingly wobbly. A stronger China may feel less inclined to honor Hong Kong's de facto independence, particularly if the locals continue agitating for political rights. China's history with Hong Kong has always been gentle in comparison to its turbulent relationship with Taiwan, but in the coming years and decades the Bamboo Curtain area seems poised for greater conflict.