In one year, Hong Kong has seen tremendous changes in its political and legal systems, but the public perceptions of these changes are increasingly negative. The potential social and political crises can be averted only through a rapid recovery of Hong Kong'. economy. However, the end of the Asian financial upheaval is not in sight, and it is doubtful that Hong Kong can extract itself from this meltdown by its own efforts. A continuing financial whirlwind in the region would invite intervention from Beijing, in which economics could hardly be separated from politics. This would ultimately ruin the implementation of the 'one country, two systems' model, which China considers a great experiment. Both Beijing and Hong Kong would become losers in the international political economy.