Why is China taking over Hong Kong anyway?

Because the lease is up. China ceded Hong Kong island to Britain "in perpetuity" in 1842 after the First Anglo-Chinese (i.e. Opium) War. In the treaty ending the Second Anglo-Chinese War in 1860, Britain acquired clear title to Kowloon. But when the New Territories were added in 1898, the British got only a 99-year lease that expires this June 30. Hong Kong couldn't survive without the New Territories, which comprise 90% of the colony's area. In 1979, when local banks realized that they might have trouble making long-term loans to property developers unless the post-expiration status of the underlying land was resolved, Britain opened formal talks with China about Hong Kong's future. At first, the British tried to renew the 1898 lease. But Deng Xiaoping insisted on full sovereignty, and the handover deal was struck in 1984. The good news: now you can get a long-term loan to buy that apartment. The bad news: with prices up about 300% since 1984, you probably can't afford it.

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