Tung Chee-hwa

Tung Chee-hwa
Tung Chee-hwa
Born	May 29, 1937 (age 89); Xuhui District, Shanghai
Occupation(s)	Entrepreneur, politician
Years active	1960–present
Known for	First Chief Executive of Hong Kong (1997–2005), Vice Chairman of the Chinese People's Political Consultative Conference (2005–2023)

Tung Chee-hwa (; born May 29, 1937) is a Hong Kong entrepreneur and former political leader who held the position of the inaugural Chief Executive of Hong Kong from 1997 until 2005, following the handover on July 1. Between 2005 and 2023, he served as a vice chairman within the Chinese People's Political Consultative Conference (CPPCC).

As the oldest son of shipping tycoon Tung Chao Yung, founder of Orient Overseas Container Line (OOCL), Tung assumed control of the family enterprise after his father passed away in 1981. In 1985, OOCL neared financial collapse but was salvaged in 1986 through intervention by the People's Republic of China government via Henry Fok.

Governor Chris Patten appointed Tung as an unofficial member of the Executive Council of Hong Kong in 1992. He was Beijing’s favored choice to become Hong Kong’s first Chief Executive. In 1996, a 400-member Selection Committee elected him to the role. His tenure encountered significant challenges such as the bird flu epidemic and the 1997 Asian Financial Crisis. He secured an uncontested second term in 2002. However, in 2003, amid disputes over proposed Hong Kong Basic Law Article 23 legislation and the SARS crisis, more than half a million protesters called for his resignation. Tung stepped down before completing his term on March 10, 2005.

Following his resignation, he was appointed vice chairman of the CPPCC and founded the China-United States Exchange Foundation (CUSEF) in 2008 with the aim of shaping US perspectives on China. In 2014, he launched the think tank Our Hong Kong Foundation, supported by prominent business leaders. Tung continues to exert considerable influence in Hong Kong’s political landscape and is frequently referred to as a "kingmaker."

Family and early life

Born on July 7, 1937, in Xuhui District, Shanghai, Tung hailed from the notable shipping family established by his father, Tung Chao Yung, founder of the Orient Overseas Container Line, which had close affiliations with the government of the Republic of China. His younger sibling, Tung Chee-chen, was ranked as Hong Kong’s 23rd wealthiest individual in 2009, with assets estimated at US$900 million. In January 2008, Forbes placed Tung and his family as the 16th richest in Hong Kong, with an estimated net worth of US$3 billion.

Amidst the Chinese Communist Revolution in 1949, Tung’s father moved their family to Hong Kong. The family maintained connections with Chiang Kai-shek’s Kuomintang government based in Taiwan; this link was symbolized by OCCL’s plum blossom emblem, which is Taiwan’s national flower. During the 1950s, Tung attended Chung Wah Middle School before pursuing marine engineering studies at Liverpool University, where he graduated in 1960. Subsequently, he worked as an engineer for General Electric in Massachusetts and later joined the family business in New York City. After a brief period residing in San Francisco, he returned to Hong Kong in 1969.

All children of Tung hold American citizenship.

Early business and political career

He rejoined his family enterprise upon his return to Hong Kong in 1969 and assumed control following his father's passing in 1982. By 1985, the business was burdened with significant debt and teetered on the edge of bankruptcy. Assistance came from pro-Beijing entrepreneur Henry Fok, who, backed by the Beijing administration, played a crucial role in rescuing the family firm.

Tung established strong connections with Beijing officials, notably with Jiang Zemin, then serving as General Secretary of the Chinese Communist Party. This relationship was strengthened by Tung's roots in nearby Ningbo, Zhejiang, and his professional background in Shanghai, aligning him with the influential "Shanghai clique."

Between 1985 and 1990, Tung participated in the Hong Kong Basic Law Consultative Committee, contributing to the formulation of the Basic Law of Hong Kong. In 1993, he became a member of the Chinese People's Political Consultative Conference, China’s premier advisory assembly. Additionally, he fostered ties with American political figures such as President George H. W. Bush and Assistant Secretary of State Winston Lord.

Following an agreement between British and Chinese authorities, Tung—previously relatively obscure in political circles—was appointed to the Executive Council of Hong Kong by Governor Chris Patten in 1992. He resigned from this position in 1996 to contest Hong Kong’s inaugural Chief Executive election.

Prior to the election, Jiang Zemin openly endorsed Tung, who campaigned emphasizing Confucian values, elitism, and nationalism. On 11 December 1996, Tung secured victory as Chief Executive, winning 320 votes from a 400-member Selection Committee and defeating fellow Shanghainese contenders former judge Yang Ti-liang and businessman Peter Woo. He officially took office as Hong Kong’s first Chief Executive on 1 July 1997, coinciding with the handover.

First term

In early 1997, Tung emerged victorious in the first Chief Executive election, which was conducted by a 400-member electoral college appointed by the Chinese Government.

The administration committed to prioritizing housing, elderly care, and education. The housing strategy aimed to deliver 85,000 flats annually to counteract rising property prices. However, this target became unattainable following the Asian financial crisis soon after Tung assumed office, as property values plummeted from 1998 through 2002.

Designated by China’s State Council, Tung officially began his term on 1 July 1997. His initial tenure was significantly affected by the Asian financial crisis and faced public disapproval concerning his leadership approach. The economy suffered from job reductions alongside sharp declines in stock and property markets. Economic policies criticized as crony capitalism further eroded public trust in both Tung and the HKSAR government.

During this period, several major initiatives were introduced including a technology park (Cyberport), a science park, a centre for traditional Chinese medicine, and the Hong Kong Disneyland theme park. Certain decisions attracted scrutiny from Beijing’s central authorities, including Jiang Zemin.

Controversy arose when Cyberport was awarded to Richard Li without an open bidding process. Similarly contentious was the granting of a 50-year land lease to Walt Disney Company for its theme park project, which was viewed as disruptive to market competition. The administration also explored plans for establishing a casino within Hong Kong.

This term encountered multiple difficulties such as complications during the launch of the new Hong Kong International Airport, inadequate handling of an avian influenza outbreak, contentious education reforms impacting teaching quality, disputes over right of abode policies, and political friction with popular Chief Secretary Anson Chan. By August 2002, amid ongoing economic challenges, Tung’s approval rating had declined to 47%.

Second term

Tung Chee Hwa secured his second term as Chief Executive without opposition, having received 714 nominations from the 800-member electoral college, well above the minimum threshold of 100 endorsements per candidate.

Accountability system

Beginning in 2002, Tung introduced a major overhaul of governmental operations through the Principal Officials Accountability framework. This approach transformed all principal officials—including the Chief Secretary, Financial Secretary, Secretary for Justice, and bureau chiefs—into appointed political figures instead of career civil servants. The objective was to enhance administrative coordination by positioning bureau chiefs directly under the Chief Executive and integrating them into the Executive Council. Furthermore, leaders from the pro-establishment Liberal Party and Democratic Alliance for the Betterment of Hong Kong were brought into the Executive Council, effectively creating a governing coalition that excluded pro-democracy factions from executive decision-making.

Governance crisis in 2003

During his second term, Tung prioritized enacting national security legislation under Article 23 of the Hong Kong Basic Law in September 2002. This proposal encountered fierce resistance from pro-democracy activists, legal professionals, media representatives, religious figures, and human rights advocates concerned about civil liberties. Public frustration was further amplified by dissatisfaction with the government’s delayed response to the SARS outbreak in early 2003. These factors culminated in a large-scale demonstration on 1 July 2003, drawing approximately 500,000 participants demanding Tung’s resignation.

In the aftermath, James Tien, leader of the Liberal Party, resigned from the Executive Council on 6 July as a clear sign of his party’s withdrawal of support for the bill. The government subsequently deferred and eventually abandoned the legislation. On 17 July, Regina Ip, Secretary for Security and a principal advocate for Article 23, stepped down citing personal reasons. That same day, Finance Secretary Antony Leung resigned amid controversy known as "Lexusgate," involving his purchase of a luxury vehicle shortly before proposing a car sales tax.

Subsequent developments

Throughout discussions on Hong Kong’s constitutional reforms, Tung faced criticism for inadequately advocating public demands for universal suffrage in 2007/08 to Beijing. Although opposition efforts mainly targeted the PRC government, Tung’s failure to back pro-democracy groups contributed to his persistently low approval ratings.

In late 2003, InvestHK—a government agency—sponsored the Harbour Fest music event aiming to stimulate tourism. The festival suffered from poor attendance and cost taxpayers HK$100 million. Both InvestHK and the American Chamber of Commerce blamed each other for its lack of success.

Tung’s administration encountered further difficulties in July 2004 when Dr. Yeoh Eng-kiong, Secretary for Health, Welfare & Food, resigned following a legislative inquiry that criticized the government’s management of the 2003 SARS crisis.

Later that year, plans to sell significant government-owned real estate through The Link REIT were halted due to a tenant-initiated lawsuit, causing additional embarrassment for Tung’s leadership.

Economic conditions improved in 2004 with declining unemployment rates and an end to prolonged deflation. This eased public dissatisfaction and weakened momentum for democratic activism. A protest held in January attracted only a few thousand participants compared to previous years. Nevertheless, Tung’s personal popularity remained notably lower than that of his deputies Donald Tsang and Henry Tang.

Resignation

Tung's standing deteriorated further following Hu Jintao's public reproach in December 2004, which highlighted mismanagement of the Link REIT listing, the West Kowloon cultural initiative, and the controversy surrounding the Hung Hom flats. Tung rejected the notion that he had been reprimanded and asserted he retained backing from the central government, though he conceded that previous mistakes needed to be rectified. In his Policy Address in January 2005, Tung himself offered a candid critique of his own administration.

Speculation about Tung stepping down grew, reinforcing views of his "vulnerability" and "uncertainty." Prior to his departure, influential businessman Stanley Ho, with close ties to Beijing, endorsed Donald Tsang as a prospective replacement. Rumors also emerged suggesting Tung would be appointed vice chairman of the Chinese People's Political Consultative Conference (CPPCC). On 27 February 2005, it was revealed that Tung, along with nine others, would join the CPPCC. On 2 March, most local media prematurely declared "Tung Resigns," except for pro-mainland outlets such as Ta Kung Pao, Wen Wei Po, and Hong Kong Commercial Daily. Tung refrained from commenting when approached.

On 10 March 2005, Tung convened a press briefing at Central Government Offices to announce his resignation, citing "health reasons." The following day, he traveled to Beijing and was elected Vice Chairman of the CPPCC on 12 March 2005, marking the conclusion of the CPPCC's annual session.

His resignation ignited discussions about whether his successor should complete the remaining two years of his term or start a new five-year mandate. Beijing had largely selected Tung due to his commercial expertise and because they had previously aided him in averting bankruptcy through a US$100 million loan.

U.S.−China politics

Following his resignation as Chief Executive, Tung was appointed vice-chairman of the Chinese People's Political Consultative Conference (CPPCC) in March 2005. In 2008, he established the China-United States Exchange Foundation (CUSEF) aimed at enhancing mutual understanding between China and the U.S. By 2009, he had become a Global Fellow at Columbia University.

CUSEF has been identified as an instrument for the Chinese Communist Party to influence international policy discussions by providing significant funding to foreign entities, including the China Studies program at Johns Hopkins University's School of Advanced International Studies (SAIS).

In 2018, after concerns raised by U.S. Senator Ted Cruz, the University of Texas at Austin declined CUSEF's financial support for its China Public Policy Center. Cruz emphasized CUSEF’s connections to the CCP's United Front apparatus and Tung's role as CPPCC vice chairman as key factors in managing foreign influence operations.

Influence in Hong Kong

During the 2012 Chief Executive election, candidate Leung Chun-ying, regarded as Tung's protégé, gained favor with Xi Jinping, who was then responsible for overseeing Hong Kong and Macau affairs. Initially considered an underdog, Leung ultimately triumphed over pro-Beijing contender Henry Tang.

In 2014, Tung launched the think tank Our Hong Kong Foundation, which includes approximately 80 advisors from diverse sectors such as business, education, social welfare, legal professions, and religion. Notable members include former Financial Secretary Antony Leung, former Monetary Authority Chief Executive Joseph Yam, and Alibaba chairman Jack Ma. The foundation actively promotes public policies related to issues like housing and land supply; its 2018 initiative advocating extensive land reclamation was partially incorporated into Chief Executive Carrie Lam's policy address.

Ahead of the 2017 Chief Executive election, Tung was perceived as endorsing Carrie Lam, then serving as Chief Secretary for Administration, signaling support after incumbent Leung Chun-ying announced he would not seek another term. Reports suggested Tung informed Beijing that he might not accept former Financial Secretary John Tsang even if elected, leading him to back Lam to prevent an "embarrassing situation." This intervention drew criticism from 30 Legal subsector electors who argued that his involvement compromised electoral fairness. Consequently, Tung earned a reputation as a "kingmaker" within Hong Kong politics.

In July 2017, Tung divested his family-owned firm Orient Overseas (International) Limited (OOIL), selling it to Chinese state-owned enterprise Cosco Shipping for HK$49.2 billion (US$6.3 billion).

Awards

In 2006, Tung was honored with the Grand Bauhinia Medal and also received an Honorary Doctorate in Social Sciences (D.S.Sc) from the Hong Kong University of Science and Technology. Later, on 17 September 2019, the Standing Committee of the 13th National People's Congress announced that he had been conferred the national honorary designation of Outstanding Contributor to One Country, Two Systems by General Secretary of the Chinese Communist Party Xi Jinping.

External links

Corpus of Political Speeches: A collection of political speeches by Tung Chee Hwa and other Chinese leaders, curated by Hong Kong Baptist University Library

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