HONG KONG, June 30 (Reuters) - Chinese President Xi Jinping said there have been "new issues" and "new challenges" in Hong Kong's implementation of the "one country, two systems" principle that guarantees the city a high degree of autonomy.

He added these issues should be handled correctly and analyzed rationally, and that he remained confident in the city.

Xi made the comments carried by local television while meeting about 200 delegates from all sectors of Hong Kong society during his three-day visit to celebrate the former British colony's 20 years under Chinese rule.</s>Chinese President Xi Jinping, visiting Hong Kong for the 20th anniversary of the city's return to Chinese rule, inspected more than 3,000 People's Liberation Army troops on Friday, as pro-democracy campaigners geared up for protests.

His visit to the former British colony comes amid heightened tension between China and Hong Kong, where many people are concerned at what they perceive to be increasing interference by Beijing in the city's affairs.

The battle for full democracy has been a defining issue for the city of 7.3 million. It has sown distrust between China and Hong Kong, polarized politics, hampered governance and stoked mass protests.

Xi's visit to the Shek Kong barracks in a quiet and lush corner of Hong Kong came on the second day of his first trip as president to the financial hub ahead of Saturday's anniversary.

Xi, who oversees the PLA in his role as head of the powerful Central Military Commission, repeatedly shouted, "Hello comrades!" and "Comrades, you are working hard!" into four microphones fixed atop his motorcade as martial music blared in

 the background.

The troops responded in unison: "Hail to you chief!" and "Serve the people!"

The presence of the PLA in the city has long been one of the most sensitive parts of the city's reversion to Chinese rule, but the garrison, thought to number between 8,000 and 10,000, has kept a noticeably low-key presence.

Hong Kong's large and well-equipped police force - dominated by Hong Kong recruits - remains responsible for routine domestic security and was protecting the streets surrounding the base on Friday.

Security has been tight ahead of the anniversary, with some 9,000 police reportedly deployed to maintain order. Protesters have been kept well away from Xi and his entourage, his hotel, and the venue for the handover day ceremony on Saturday.

Banners critical of China have been largely absent from the streets, though a rally on Saturday could draw tens of thousands of people in an annual demand for full democracy.

Britain returned Hong Kong to Chinese rule on July 1, 1997, under a "one country, two systems" formula that guarantees wide-ranging freedoms and judicial independence unseen in mainland China.

More than 100,000 people took to the streets in 2014 for 79 days to protest against Beijing's refusal to allow full democracy in the so-called "Occupy" civil disobedience movement.

Few expect anywhere near this scale of protest during Xi's visit, but activists and civil society groups are planning a number of demonstrations. These include a pro-independence rally claiming that Hong Kong had now in effect become a repressed Chinese colony.

Other protests will demand the release of Chinese Nobel Peace laureate Liu Xiaobo, and justice for victims of the Tiananmen crackdown in Beijing in 1989, that could draw

 thousands.

Hong Kong authorities released 26 pro-democracy protesters on Friday who were arrested before Xi's arrival.

"Democracy Now! Now!," they shouted on being released, including young Occupy protest leader Joshua Wong.

After the military inspection, Xi visited a junior police training camp with Hong Kong leader Leung Chun-ying.

He observed children doing physical training and told them to develop their sense of responsibility so they can serve Hong Kong and "the motherland".</s>Twenty years on from Hong Kong's handover, traces of the earliest days of British rule can be found around Hong Kong.</s>Tight security contained protesters in Hong Kong tonight as China’s President Xi Jinping led lavish celebrations to mark 20 years since the politically divided city was handed back to China by Britain.

A huge security operation has shut down large parts of Hong Kong, with thousands of police deployed to keep away demonstrators angry at Beijing’s tightening grip on the freedoms of nearly eight million people.

A planned pro-independence rally was cancelled after police banned it from taking place and cordoned off the harbourfront area where defiant protesters had said they would gather.

An official protest zone near the harbourfront convention centre where Xi was guest of honour at an anniversary banquet and variety show was also heavily patrolled as dozens of demonstrators gathered chanting: “End one-party dictatorship!”

Tensions had flared this afternoon as democracy campaigners and pro-China supporters swore and shouted at each other near the convention centre, with police separating the two sides.

Xi praised Hong Kong for its role in China’s economic development as he addressed the banquet, which included lawmakers and business figures, and told Hong Kong citizens to believe in themselves and China.

“Hong Kong has developed from a small unknown fishing village into a large international metropolis, forged by the hard work of generations of Hong Kongers,” he said.

“When the country does well, Hong Kong will do even better,” he added, before raising a glass of red wine for a toast.

Xi had earlier met with business leaders including the city’s richest man, Li Ka-shing, with whom he shared a lengthy handshake.

Earlier today, tanks, missile launchers and chanting troops greeted Xi in a potent display of Chinese military might.

He inspected troops at China’s People’s Liberation Army airfield in rural northern Hong Kong, wearing a black Mao suit and riding an open-top camouflage jeep in the largest military parade since the 1997 handover.

As the jeep slowly drove past row upon row of air, naval and land personnel, Xi shouted “Hello comrades!” as the troops responded “Hello chairman!”

Armoured vehicles topped with missile launchers and military helicopters lined Xi’s path along the airstrip for the eight-minute extravaganza.

There were fears that the PLA would crack down in Hong Kong when it was returned to China, particularly after the brutal crushing of student protests in Beijing’s Tiananmen Square in 1989, but it has kept a very low profile.

The PLA is responsible for defending the city and comprises only mainland troops, with Hong Kong residents unable to serve, but it is barred from interfering in local affairs.

As part of the handover deal, Hong Kong was guaranteed rights including freedom of speech and an independent judiciary for 50 years, but there are concerns those liberties are disappearing as Beijing becomes ever more assertive.

Xi’s three-day visit is his first since becoming leader in 2013, and comes three years after huge pro-democracy rallies crippled Hong Kong.

Student protest leader Joshua Wong and young legislator Nathan Law were among 26 activists detained by police Wednesday night for “public nuisance” over a protest a stone’s throw away from the hotels where Xi and his entourage are staying.

They were released from police custody in the early hours of today after threatening to go to the High Court to petition against their ongoing incarceration.

Police told AFP they had not been charged, but bailed to report back in September.

Activists say they have been followed by police and “thugs” since the protest.

In many major Hong Kong newspapers, coverage of protests was eclipsed by exhaustive accounts of Xi’s itinerary and quotes from him, at a time when the media stands accused of succumbing to pressure from Beijing.

The US State Department urged China to respect civil liberties in Hong Kong, including press freedom, in a statement yesterday.

During his visit Xi has pledged support for Hong Kong and assured that its semi-autonomous system of government is intact.

But he also praised the government for “dealing a blow” to an independence movement that has infuriated Beijing.

Calls for the city to break away from China grew out of the failure of the mass pro-democracy rallies in 2014 to win political reform.

For all the latest World News, download Indian Express App</s>As Hong Kong marks 20 years since its handover from the UK to China - The Telegraph takes a look back 175 years to its British foundations.</s>July 1 marks the 20th anniversary of Hong Kong being handed back to China. While it’s a city still searching for its identity, the two decades since 1997 have done little to dent its unique East-meets-West flavour.

According to Euromonitor, Hong Kong is the world’s most-visited city: 26.5 million visitors landed in the Special Administrative Region of China in 2016. That’s just one superlative. Hong Kong is also one of the most densely populated cities on earth, but also one of the most diverse. Around 40 per cent of the territory is country parkland. The rest is restaurants, bars, buildings – and people, people, people.

It’s not hard to have a good time in this most zingy of destinations. Hong Kong is Asia’s World City; and it’s not afraid to show it.

For all its slick urban marketing, Hong Kong Island is dominated by a mountainous centre, with an area not much bigger than Manhattan. It’s surrounded by the South China Sea, as well as myriad other islands that feel a whole world away from Hong Kong’s humming skyscrapers and urban life (but handily, most are just half an hour away by ferry). Buzz over to Pak Kok, on the tip of hippy Lamma Island, to explore its low-rise island houses and green fields; or visit tiny Peng Chau, which has a shoreline and bobbing boats that make it look more like Greece than China. Short on time? Hop on the iconic green-and-white Star Ferry, which has ferried passengers across Asia’s most photographed stretch of water – Victoria Harbour – since 1888.

Forget champagne-soaked brunches (although this is another Hong Kong speciality). Hong Kong’s mid-morning feed is all about dim sum – which translates to spending a leisurely few hours eating stacked-high baskets of hot little dumplings, steamed buns and rice noodle rolls, all washed down with endless cups of Chinese tea. You’ll find casual dim sum joints on almost every street in Hong Kong, although one of the best is Michelin-starred Tim Ho Wan, which does plates of siu mai (prawn and pork dumplings) and har gow (prawn dumplings) for under a fiver each. At the other end of the scale is Maxim’s Palace at City Hall, where dishes come direct from a dim sum trolley: the traditionalist’s way.

Thought Hong Kong was all skyscrapers and urban density? Well, er – it is. But that’s only around 60 per cent of the story. The rest of the territory is protected country parkland, meaning that almost every skyscraper backs onto lush green hills. A 30-minute hike from Hong Kong’s urban core will take you up the 554m Victoria Peak, which offers blockbuster panoramas over the island and the Kowloon peninsula. Or escape the tourist crowds by hiking a single set of steps to High West in Pok Fu Lam Country Park. There’s a smashing view of western and southern Hong Kong, and better yet there’s not a 7/11 or a Burger King in sight.

For a city that only recently established a formal art scene (the Art Basel carnival rolled into town in 2013), Hong Kong can legitimately lay claim to some cutting-edge street art. The annual HK Walls street art festival this year overtook industrial-turned-arty Wong Chuk Hang, transforming walls into artworks and spray art. Side streets in hip Sheung Wan host graffitied shopfronts and geometric murals (head to Upper Station Street for the best). Or across the harbour, up in humming Sham Shui Po, is Spanish artist Okuda’s three-dimensional rainbow bear that stares down onto Tai Nan Street.

Trams, the oldest form of transport in the city, are the most playful way to get around (albeit also the slowest). Known alternatively as ‘ding-dings’ (ride one to find out why), the trams snake from the waterfront hipsterville of Kennedy Town in the west to residential Shau Kei Wan to the east of Hong Kong Island. Plus, they’re super cheap: just HK$2.3 (22p) a ride. You can also hire sauced-up open-air versions for parties.

Thanks to myriad influences from across the world, Central Hong Kong is a blend of glossy steel skyscrapers and low-rise colonial architecture that sit happily side by side – an easy analogy for the city itself. Start with IM Pei’s Bank of China: a pointy, slender tower that amusingly is said to reflect bad feng shui onto its neighbour, Sir Norman Foster’s jenga-like HSBC. Nearby in Statue Square is the neo-classical former Legislative Council Building, while up the hill is the beige, colonial Foreign Correspondents’ Club – still the centre of Hong Kong’s buzzing media community, although now equally famous as the cheapest bar in the city (the only problem being you’ll need a member to take you).

If Hongkongers aren’t getting sloshed on free-flow Veuve Cliquot or bottles of Tsingtao, they’re getting the other type of sloshed: in the warm waters of the South China Sea. The territory’s easy accessibility to myriad reservoirs as well as calm sea make it ideal for all kinds of watersports. Try wakeboarding on stunning Tai Tam Reservoir in the middle of Hong Kong Island, windsurfing at Stanley or kayaking around the islets of Sai Kung, considered by many to be the prettiest part of Hong Kong.

Let’s start with the superlatives: Hong Kong houses the world’s highest alfresco bar, Ozone, on the 118th floor of the Ritz-Carlton Hotel in West Kowloon. (It even serves a cocktail called HK Skyline, with rum, absinthe and lavender ‘smoke’ among other exotic-sounding ingredients, naturally.) Less vertiginous but no less impressive is banker favourite Sevva, a wraparound terrace overlooking the harbour and neon-lit skyscrapers of Central, and glam Ce La Vi in the California Tower, high above the Lan Kwai Fong party strip. Here during summer? You’ll want your bar with some aggressive air conditioning – probably in a sexy-stylish speakeasy. New York export Employees Only has just opened its exclusive doors, Prohibition-style boozer Foxglove is helpfully hidden behind an umbrella shop facade and you’ll find neon-soaked gin palace Ping Pong in a vast basement space in trendy Sai Ying Pun.

This city’s luxury shopping scene is well publicised – but leave the slick (although mercifully air-conditioned) malls for a snoop around one of Hong Kong’s many local markets. There are the usual suspects – like Temple Street Market, where you can buy everything from imitation paintings and I Love Hong Kong t-shirts to fake branded underwear and vibrators – and the ones that are more interesting. The street markets in fast-gentrifying, boho Sham Shui Po on the fringes of Kowloon sell everything from multipacks of TV remotes to gelatinous bowls of snake soup; while 160-year-old Graham Street wet market, the city’s oldest, sells super-fresh fish and vegetables under trademark swinging red lamps. Possibly the most unique is Chun Yeung Street market in North Point, named ‘little Fujian’ for its influx of immigrants from the mainland China province, which has a tram line running straight through the middle of it.

The traditional stilt village of Tai O is the ultimate antidote to Hong Kong’s concrete jungle. On the southwestern tip of Lantau Island, almost closer to Macau than the city centre, this tiny village is known – not exactly universally – as the Venice of Hong Kong. Tai O is also home to the territory’s pod of pink dolphins as well as its finest boutique hotel: the carefully preserved nine-room Tai O Heritage Hotel. Once the local police station, the hotel still retains its law-abiding flavour: downstairs there’s an old jail cell now used as a luggage room.</s>Xi landed in Hong Kong Thursday to mark the 20th anniversary of Beijing t... . Chinese President Xi Jinping inspects the People's Liberation Army soldiers at a camp in Hong Kong, Friday, June 30, 2017.

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China said on Friday that the joint declaration with Britain over Hong Kong, which laid the blueprint over how the city would be ruled after its return to China in 1997, was a historical document that no longer had any practical significance.

BEIJING: China said on Friday that the joint declaration with Britain over Hong Kong, which laid the blueprint over how the city would be ruled after its return to China in 1997, was a historical document that no longer had any practical significance.

The stark announcement from the Foreign Ministry, that is sure to raise questions over Beijing's commitment to Hong Kong's core freedoms, came the same day Chinese President Xi Jinping said in Hong Kong the "one country, two systems" formula was recognised "by the whole world".

It also came a day after Britain reaffirmed its commitment to the document. Hong Kong celebrates the 20th anniversary of Chinese rule on Saturday.

It wasn't immediately clear if Foreign Ministry spokesman Lu Kang was attacking just the idea of continued British involvement in Hong Kong, or the principles in the document.

The Sino-British Joint Declaration, signed in 1984 by then British Prime Minister Margaret Thatcher and Chinese Premier Zhao Ziyang, laid out how Britain would end its century-and-a-half long rule over Hong Kong. It also guarantees the city's rights and freedoms under the "two systems" formula.

Under Hong Kong's mini-constitution, the Basic Law, Hong Kong was guaranteed its freedoms for "at least 50 years" after 1997.

Lu told reporters during a regular briefing on Friday that the document, which British Foreign Minister Boris Johnson called a "treaty" the day before, no longer binds China.

"Now Hong Kong has returned to the motherland's embrace for 20 years, the Sino-British Joint Declaration, as a historical document, no longer has any practical significance, and it is not at all binding for the central government's management over Hong Kong. The UK has no sovereignty, no power to rule and no power to supervise Hong Kong after the handover," Lu said.

On Thursday, Johnson said in a statement Britain hoped that Hong Kong would make more progress towards democracy.

"Britain’s commitment to Hong Kong – enshrined in the Joint Declaration with China – is just as strong today as it was 20 years ago," Johnson said.</s>HONG KONG (AP) — President Xi Jinping has inspected troops based in Hong Kong as he asserts Chinese authority over the former British colony China took control of 20 years ago.

Xi rode in an open-top jeep past rows of soldiers lined up on an airstrip on his visit Friday to the People’s Liberation Army garrison. He called out “Salute all the comrades” and “Salute to your dedication” as he rode by each of the 20 troop formations.

Armored personnel carriers, combat vehicles, helicopters and other pieces of military hardware were arrayed behind the troops.

It was a rare display of the Chinese military’s might in Hong Kong, where it normally maintains a low-key presence.</s>Hongkongers have expressed surprise at the appearance of China-style decorations across the city, rolled out in anticipation of Chinese President Xi Jinping’s visit on Thursday.

A banner painted in red with the Chinese text “Welcome President Xi Jinping to inspect Hong Kong” has been spotted hanging above the toll stations outside the Western Harbour Tunnel.

Another banner reads: “Hong Kong and China share the same fate. The bauhinia [Hong Kong SAR emblem] and national flag go well together.”

The yellow and red colour on the banners is reminiscent of Chinese propaganda banners that are often seen in factories and rural areas in China.

A Twitter user took a picture of the banners, saying: “DAMN Am I in Hong Kong?”

iMoney magazine said on its Facebook page: “I am still living in Hong Kong…” with hashtags “I am not scared by the illusion” and “President Xi attacks Hong Kong.”

Banners reading “We enthusiastically welcome the 20th anniversary of Hong Kong’s returning to the mother country” were seen on the wall of shopping mall Olympian City. The text was in simplified Chinese, a writing system used in mainland China.

Many expressed disapproval over the decorations, saying that they were distasteful. “I am disgusted by the combination of yellow and red,” a commenter said.

“What is happening? Am I in mainland China?” wrote another.

Chinese companies such as the Agricultural Bank of China and China Life Insurance put up signs in celebration of the 20th anniversary of the Handover on Saturday.

A pro-China group put up a banner saying – in simplified Chinese – “Xi Dada [big daddy Xi], we welcome you!” on a footbridge in Shun Lee Estate, a public housing estate in Kwun Tong.

“Twenty years since the transfer of sovereignty over Hong Kong, I think this is the first time I see such blunt banner messages. I can barely stand them,” said Hong Kong Professional Teachers’ Union Chief Executive Fung Ka-keung, who took the picture.

Dozens of Chinese and Hong Kong flags have been seen fluttering above Mody Lane in Tsim Sha Tsui East near Victoria Harbour.

Chinese and Hong Kong flag bunting was also spotted on Lamma Island.

See also: Black bauhinia: Activists cover handover monument in protest of China President’s Hong Kong visit

The Central and Western District Council has placed a large roadside installation consisting of a bullet train model, a lantern and sailboats. The display said: “Join hands to build the future together. Chinese lanterns light up Hong Kong.”

Journalist Allan Au Ka-lun said: “Only banners singing praises can be shown to the leaders. The leaders are blocked from criticism and angry cries from the people.”

He said his mainland Chinese friend was also surprised by the handover decorations displayed around Hong Kong Island.

“Why are the decorations here so ugly? They are even worse than those in the mainland,” he quoted his friend as saying.

Protest art

Meanwhile, anonymous posters were distributed across the city in protest of Xi’s visit.

Artwork depicting Xi and Hong Kong leader Leung Chun-ying kissing were posted in an underpass in Central alongside bilingual signs calling on people to “rise up for real autonomy.”

Another sign cited Article 27 of the Basic Law – which guarantees Hong Kong residents freedom of speech, the press, and assembly – and Article 16 of the Bill of Rights Ordinance, which guarantees people’s right to freedom of opinion and expression.

Street signs and banners celebrating the Handover have also been targeted, with the text “Hong Kong has fallen for 20 years” spray painted on them.

But the artworks may not remain for long, as local media cited sources as saying that police officers have been instructed to crack down on sensitive slogans and images in order to avoid “embarrassing” Xi.

The Hong Kong government has stepped up security measures ahead of the official visit, citing terrorist threats. Giant barriers have appeared around Wan Chai, where Xi will be staying and attending a number of official events. On Saturday, he will inaugurate Carrie Lam as the SAR’s new chief executive.

Local media reported that Xi will be touring some parts of the city, such as the West Kowloon Cultural District. The police’s escort team was seen rehearsing across the city, sparking public frustration as traffic ground to a temporary halt.

See also: In Pictures: Fortress Hong Kong – City on security lockdown ahead of President Xi Jinping’s visit

However, details of unofficial events attended by Xi have not been made public. Police will set up security zones at multiple venues, but the media may only be informed two hours before Xi’s arrival.

On Tuesday, police warned that they will evict journalists from Handover venues for any actions unrelated to reporting. Digital media outlets remain barred from covering the celebrations and inauguration.
Protests mark the 20th anniversary of the transfer of sovereignty over Hong Kong to China from the United Kingdom alongside the arrival of Chinese President Xi Jinping.