A Chinese government white paper published last month has set some western media abuzz. The cause, apparently, is its claim that China has full jurisdiction over Hong Kong.

This should not have been a surprise. A careful review of history reveals the correct perspective. More than three decades ago, Margaret Thatcher’s government proposed to concede sovereignty to China in exchange for keeping the territory under British administration. This was flatly rejected by Deng Xiaoping.

China’s sovereignty over Hong Kong is logically embodied in its overall jurisdiction. However, the Chinese government made special arrangements to exercise jurisdiction through the Basic Law. Beijing directly exercises diplomatic and national defence powers; it also appoints Hong Kong’s chief executive and principal officials, and amends and interprets the Basic Law. In turn, the Chinese government authorises a high degree of autonomy to the administration and people of Hong Kong.