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The Basic Law was drafted in accordance with the Sino-British Joint Declaration on the Question of Hong Kong (The Joint Declaration), signed between the Chinese and British governments on December 19, 1984. The Basic Law stipulates the basic policies of the PRC towards the Hong Kong Special Administrative Region. As agreed between the PRC and the United Kingdom in the Joint Declaration, in accordance with the " One Country, Two Systems" principle, socialismFor information on mainstream political parties using the term "Socialist", see Social democracy and Democratic socialism For the governments of the USSR, the PRC, and others, see: Communist state Other variants of Socialism include Marxism, Communism, an as practised in the PRC would not be extended to Hong Kong. Instead, Hong Kong would continue its previous capitalistIn economics, a capitalist is someone who owns capital, presumably within the economic system of capitalism. Not all usages of the word assume actual ownership of capital. Some philosophers and political theorists, such as Ayn Rand and David Friedman, use system and its way of life for a period of 50 years after 1997. A number of freedoms and rights of the Hong Kong residents are also protected under the Basic Law.

The source of authority for the Basic Law is somewhat controversial, with most Chinese legal scholars arguing that the Basic Law is purely domestic legislation deriving its authority from the Constitution of the People's Republic of ChinaThe Constitution of the People's Republic of China is the highest law within the People's Republic of China. The current revision was adopted by the National People's Congress on December 4, 1982 with further revisions in 1988, 1993, 1999, and 2004. Three, and with some legal scholars arguing that the Basic Law derives its authority directly from the Sino-British Joint Declaration. The argument is relevant in that it impacts the amount of authority that the PRC has to change the Basic Law, and the ability of the Hong Kong courts to challenge PRC domestic legislation.

1 General principles enshrined under the Basic Law

• The HKSAR has a high degree of autonomy and enjoys executive, legislative and independent judicial power, including that of final adjudication (Article 2). An implication is that the former judicial recourse by appealing to the English Privy CouncilThis article concerns the British Sovereign's Privy Council. See also Privy Council (disambiguation). Her Majesty's Most Honourable Privy Council is a body of advisors to the British Sovereign. Formerly, the Council was a powerful institution, but is now would no longer be available. Instead, the Court of Final Appeal was established within the HKSAR to take up the role.

• The executive authorities and legislature of the HKSAR shall be composed of permanent residents of Hong Kong in accordance with the relevant provisions of the Basic Law. (Article 3)

• The socialist system and policies shall not be practised in the HKSAR, and the previous capitalist system and way of life shall remain unchanged for 50 years. (Article 5)

• The laws previously in force in Hong Kong, that is, the common lawThis article concerns the common-law legal system, as contrasted with the civil law legal system; for other meanings of the term, within the field of law, see common law (disambiguation). The common-law legal system forms a major part of the law of many c, rules of equityFor the actors' guilds called "equity," see Actors' Equity Association (U. or British Actors' Equity Association (U. For "equity" as the value of an ownership interest in property, see ownership equity. Equity is the name given to the whole area of the le, ordinances, subordinate legislation and customary law (such as Chinese clan law) shall be maintained, except for any that contravene the Basic Law and subject to any amendment by the legislature of the HKSAR. (Article 8)

• The HKSAR shall protect the right of ownership of private property in accordance with law. (Article 6)

• All Hong Kong residents shall be equal before the law. Permanent residents of the HKSAR shall have the right to vote and the right to stand for election in accordance with law. (Articles 25-26)

• The freedom of the person of Hong Kong residents shall be inviolable. No Hong Kong resident shall be subjected to arbitrary or unlawful arrest, detention or imprisonment. Arbitrary or unlawful search of the body of any resident or deprivation or restriction of the freedom of the person shall be prohibited. Torture of any resident or arbitrary or unlawful deprivation of the life of any resident shall be prohibited. (Article 28)

• Hong Kong residents shall have, among other things, freedom of speech, freedom of the press and of publication; freedom of association, freedom of assembly, freedom of procession, of demonstration, of communication, of movement, of conscience, of religious belief, and of marriage; and the right and freedom to form and join trade unions, and to strike. (Articles 27-38).

• The provisions of the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural Rights, and international labour conventions as applied to Hong Kong shall remain in force and shall be implemented through the laws of the HKSAR. (Article 39)

• Although the PRC has responsibility for Hong Kong's foreign relations and defence, Hong Kong is permitted to participate in international organizations or conferences in appropriate fields limited to states and affecting the HKSAR, or may attend in such other capacity as may be permitted by the PRC government and the international organization or conference concerned, and may express their views, using the name "Hong Kong, China". The HKSAR may also, also using the name "Hong Kong, China", participate in international organizations and conferences not limited to states.