1950s in Hong Kong

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After the Japanese rule of Hong Kong ended in 1945, sovereignty was returned to the British. However, in Mainland China, the Nationalist-Communist Civil War was renewed. It prompted a large influx of refugees from the mainland, causing a huge population surge. The government struggled to accommodate these immigrants. Unrest in China also prompted businesses to relocate their assets and capital from Shanghai to Hong Kong. Together with the cheap labour of the immigrants, the seeds of Hong Kong's economic miracle in the second half of the 20th century were sown.

However, as the Communists drew near to a victory in early 1949, there were fears that Hong Kong was going to be invaded by the communists too, a second invasion in less than a decade. The British government was determined to keep Hong Kong as a capitalist outpost within a communist sphere of influence, the memories of the Berlin Blockade and the perceived antagonism of communist governments still fresh in its mind. The garrison was reinforced and plans of emergency evacuation to Australia were made. However, the Chinese Communist forces were ordered to stop advancing at the Shenzhen-Guangzhou border, and Hong Kong remained a British colony.

Why this happened is still up to much historiographical debate. Britain, contrary to the worldwide trend of decolonisation, stood firm on their claim of Hong Kong mainly because of economic reasons. Hong Kong was a very valuable trade centre at the mouth of China, and hoped that by retaining this connection doing business with the new government in Beijing would be easier. Also, to give up Hong Kong to the communists without a fight would be seen as a national weakness in the face of the growing communist threat in Europe and Asia, especially the Emergency in Malaya.

The newly-established People's Republic of China (PRC) has never given any actual reason for sparing Hong Kong in 1949, but several have been speculated. Hong Kong was a major source of foreign investment for the PRC at the time. It is also possible that Mao Zedong was worried that conquering Hong Kong would provoke an all-out war with Britain when the PRC was anticipating an attack by the Nationalists in Taiwan, backed by the United States. Also, Mao may have wanted to keep the temperature on Britain on by holding its valuable colony in its grip, so the PRC could have an influence on the foreign policy of Britain to mediate the relationship between the PRC and the United States.