On 1 July 1997, sovereignty over Hong Kong was transferred from the United Kingdom to the Republic of China, officially ending 156 years of British colonial administration. 1The city -The state is one of the two special administrative regions of the Republic of China together with Macau. Under the "one country, two systems" principle, Hong Kong has a different political system from mainland China, although its founding document, the Hong Kong Basic Law, states that the region enjoys a high degree of autonomy in all sectors, except foreign relations and military defense. Today, Hong Kong continues to be a leader as a global financial center, but faces uncertainty about its future due to the growing economy of mainland China, which could lead to the latter absorbing Hong Kong when its independence is expected be discussed in 2047 (term of the "one country, two systems" policy).2ECONOMIC ENVIRONMENTHong Kong's economy is dynamic and deeply linked to international trade including the international banking sector. Its economic system is one of the least regulated in the world and is, in fact, considered a tax haven. The city-state has limited quantities of natural resources, both agricultural products and raw materials. Hence the importance of air freight activities as they provide all types of goods in order to meet the national demand for raw materials. Hong Kong has excellent economic and trade ties with the Republic of China, especially since both signed the Closer Economic Partnership Arrangement (CEPA) in 2003, a free trade agreement that has strengthened collaboration between the two countries and facilitates adoption of further liberalization measures. A perfect incentive that attracted many...... middle of paper ......//www.aci.aero/Data-Centre/Monthly-Traffic-Data/International-Freight-Traffic/Monthly )9- http ://www.hongkongairport.com/eng/pdf/business/statistics/2013e.pdf10- http://www.hongkongairport.com/eng/pdf/business/about-the-airport/air-cargo/AirCargo_brochure. pdf PDF11- http://hkia3way.blob.core.windows.net/pdf/en/TR_24May_Eng_Full.pdf12- (http://centreforaviation.com/analysis/freight-volumes-dropping-quite-dramaically-tofrom-hong- kong -reflecting-global-freight-trends-59064)13- (http://www.customs.gov.hk/en/cargo_clearance/clearance/examination/index.html)14- http://www.hactl.com / en-US/About-Hactl/Milestones.aspx#.U2-cMfl5N5415- (http://www.cathaypacificcargo.com/en-us/aboutcathaypacificcargo.aspx)16-: http://www. threerunwaysystem.com/en /Growth/Economic_contribution.aspx17- http://www.hongkongairport.com/eng/business/airport-authority/NDIA.html)