The return of Hong Kong to China in July 1997 has the potential to benefit China's rapidly expanding economy. China's handling of the transition will have enormous implications for her international standing. This is the first study to analyse the serious problems and real opportunities that the return of the colony poses to China's international status. Examining the relationships between Greater China, Hong Kong and the West, Hong Kong: China's Challenge explores the challenges that Chinese policy makers face up to 1997 and beyond: the clash of political cultures; handling problematic negotiations; dealing with conflicting economic interests. The book concludes by suggesting that a laissez faire approach to the lucrative Hong Kong markets will ensure that China harnesses the full political and economic benefits of sovereignty over the colony.