When Hong Kong reverted to China, Beijing pledged that there would be "one country, two systems." The capitalist redoubt would be part of "one China," but it would also keep its separate political and administrative order to maintain both stability and the vitality that transformed the city into a regional economic dynamo. Balancing the two imperatives was never going to be easy, but it was assumed that Hong Kong would continue to march toward a complete democracy.

That progress has been effectively halted. Beijing has made it clear that only it will determine who is capable of running the Special Administrative Region, as the city is officially known. Not only does that jeopardize "one country, two systems," but it threatens Hong Kong's future, and Beijing's international credibility.

Britain and China agreed to basic provisions regarding the management of Hong Kong before it was handed back to China in 1997. That document, known as The Basic Law, sets careful limits on the exercise of democracy in Kong Kong. Currently, only 24 of 60 seats in the legislature (Legco) are filled by direct elections; the rest are selected by business and professional groups. In the next round of elections, scheduled for September, an additional six seats will be chosen by direct ballot. The chief executive, Mr. Tung Chee-hwa, was chosen by an 800-member committee appointed by Beijing.