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The commissioner destroyed opium stockpiles and halted all foreign trade, triggering a British military response and the First Opium War.The Qing surrendered early in the war and ceded Hong Kong Island in the Convention of Chuenpi.However, both countries were dissatisfied and did not ratify the agreement.When the British Union Flag was raised over Possession Point on 26 January 1841, the population of Hong Kong island was about 7,450, mostly Tanka fishermen and Hakka charcoal burners living in coastal villages.Diplomatic negotiations with China resulted in the 1984 Sino-British Joint Declaration, in which the United Kingdom agreed to transfer the colony in 1997, and China would guarantee Hong Kong's economic and political systems for 50 years after the transfer—"one country, two systems".

35 are directly elected from geographical constituencies and 35 represent functional constituencies (FC).Although the territory's competitiveness in manufacturing gradually declined due to rising labour and property costs, it transitioned to a service-based economy.By the early 1990s, Hong Kong had established itself as a global financial centre and shipping hub.Faced with a drug crisis, Qing officials pursued ever-more-aggressive actions to halt the opium trade.The Daoguang Emperor rejected proposals to legalise and tax opium, ordering imperial commissioner Lin Zexu to eradicate the opium trade in 1839.

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The British colony became known as a refuge from floods, typhoons, and famines in the region.