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A short answer would be that many of the lifestyles differ a lot from mainland China and there are also many others historical, cultural, economic and legal differences. Hong Kong and Macau both have more of a capitalist system while China has a socialist system at that time. Since both territories are quite well-developed than the mainland at that time, it'...


Hong Kong's economy benefits greatly from the rule of law, low corruption, and strong property rights. If HK were integrated with Mainland China, its advantages in these areas would be compromised. Furthermore, there would be some strife/resistance from the HK population. So, getting rid of 1 Country, 2 Systems would be catastrophic for the HK economy.


In addition to the technical details provided by other answers, it is also because of the fact that Deng's habit of mind was scientific as the English mind was scientific in the 17th century: when orthodox theories began to lose authority, Deng resorted to experience. Deng's policy towards Hong Kong and Macao was his cat theory and feeling-the-stones theory ...


Technically, China is abandoning one country, two system which is promised by China and British. China is insisted One Country over Two system. It is proposing China interest first, Hong Kong second. It uses Hong Kong Financial system to launder their money which is usually their income from grey economy

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