One nation,two systems for Hong Kong-10th anniversary

1. To promote the private interest with initiative in the private sector to be incorporated into the public interest under Socio-Economic model of the Chinese economy with special characteristics.
2. China's reform would activate markets under the market economy and play a role in the circular flow for the best interest of the nation as a whole. Such macroeconomic principle would be the economy in the aggregate but would allow microeconomic principle of the market to be the basis of Hong Kong's economy.
3. Business firms get the services of the factors of productrion and transform these productive inputs into useful commodities as output to honor production function.
4. When commodities are produced,there are functional market system as the basis of microeconomic policies in Socio-Economics.
5. The supply and demand mechanism can alter the composition of output in a market economy. The ever-changing new equilibrium points would correspond to the new points on Chinese society's production possibility curve in conceptual understanding of economics.
Francis Shieh a.k.a. Xie Shihao, July 1, 2007, 10th anniversary of the return of Hong Kong to China, July 1, 1997.