SYDNEY -- While the rest of the world debates the terms under which they might engage China, Beijing is busy trampling on its agreement with the British over Hong Kong's return to Chinese sovereignty. In the handover agreement, both parties agreed upon Hong Kong's mini-constitution, the Basic Law, as a document that provided assurances regarding Beijing's "one country, two systems" pledge.

Most visitors to the former crown colony, now known as the Hong Kong Special Administrative Region, would think little has changed there. And they are partly right. Little has changed on the surface. Unfortunately, there has been a constant erosion and corrosion of the basic institutions Beijing promised to leave intact.

It is clear that China's authoritarian leaders hope that they can subvert these institutions to serve their own ends. On the one hand, they implemented a rigged electoral system that dilutes the democratic process and marginalizes reformists like Martin Lee. At the same time, Beijing appointed a congenial but administratively challenged chief executive for the SAR to ensure compliance with their demands.