July 1997: Hong Kong is handed back to Chinese authorities after more than 150 years of British control. Tung Chee-hwa, a Shanghai-born former shipping tycoon with no political experience, is hand-picked by Beijing to rule the territory following the takeover.

February 2001: Hong Kong's number two official, Chief Secretary Anson Chan, who opposed Chinese interference in the territory's affairs, resigns under pressure from Beijing.

June 2002: Trial of 16 members of the Falun Gong spiritual movement arrested during a protest outside Beijing's liaison office in the territory. Falun Gong remains legal in Hong Kong, though banned in the mainland. The 16 are found guilty of causing a public obstruction.