The former British colony was handed over to China in 1997 under a "One Country, Two Systems" governance model, which guaranteed key freedoms and a high degree of autonomy.
July 1 was once a day of civil society demonstrations in Hong Kong, but authorities have cracked down on dissent after huge and sometimes violent pro-democracy protests in 2019.
Lee said the gift "fully demonstrates (China's) care and support for our city" and that the pandas will arrive within months.
He also hailed the passage of a homegrown security law -- popularly known as Article 23 -- in March, which exists alongside a national security law imposed by Beijing in 2020.
The move fulfilled a "constitutional responsibility and historic mission", Lee said in a speech.
Lee added that his policies have led to a "substantial rise in the registered number of property transactions and a stable property market".
The city's GDP is expected to grow between 2.5 and 3.5 percent this year, compared to a 3.3 percent rise last year, Lee said.
More than 4,000 police officers were deployed around the city on Monday, according to the South China Morning Post.
An online concert on Sunday hosted by singer-songwriter and LGBTQ rights activist Denise Ho was interrupted by police citing "nuisance" complaints, according to AFP reporters at the scene.
Hong Kong: a turbulent road since handover
Hong Kong (AFP) July 1, 2024 -
Hong Kong has endured a turbulent history since being handed over from Britain to China 27 years ago.
Here are some key dates:
- 1997: Handover -
On July 1, at midnight, Hong Kong is returned to Chinese sovereignty after 156 years of British rule.
The tiny territory has its own mini-constitution that governs its autonomy as a Special Administrative Region within China.
Beijing promises a "One Country, Two Systems" approach to the territory, meaning it will maintain freedoms not available to mainland Chinese.
The city is governed by a chief executive, chosen by a Beijing-controlled committee. Laws are passed by a legislative council, of which a minority of members are democratically elected.
- Financial, then health crisis -
In October, just months after the handover, the Asian financial crisis grips Hong Kong, plunging the banking hub into economic slowdown.
Five years later, the pneumonia-like Severe Acute Respiratory Syndrome (SARS) virus kills 299 people in Hong Kong and 1,800 worldwide, devastating Asian economies.
- 2003: China steps in, national security bill -
Beijing seeks to relaunch Hong Kong's economy, moving in 2003 to gradually lift customs barriers on Hong Kong products exported to the mainland. Travel restrictions on Chinese from the mainland are eased, boosting tourism numbers.
In July, an unprecedented half a million of Hong Kong's seven million people march against an unpopular national security bill, which they see as an attempt by Beijing to restrict their freedoms.
The bill is subsequently dropped -- a rare government climbdown.
- 2004: Calls for more democracy -
In January, 100,000 people march through the city calling for more democracy, bringing to a head a simmering row over the constitution's lack of clarity on electing lawmakers. In April, China rules out a swift change.
- 2007: Universal suffrage promised -
Beijing schedules for 2017 the first democratic election of the chief executive, and for 2020 elections to the legislative council. The promises disappoint pro-democracy demonstrators demanding universal suffrage from 2012.
- 2014: Umbrella Movement -
Beijing proposes a limited version of universal suffrage meaning Hong Kongers will be able to choose from a small group of Beijing-vetted candidates.
The announcement sparks a 79-day occupation of major thoroughfares known as the "Umbrella Movement". The protesters secure no concessions from Beijing, prompting a minority of protesters in subsequent years to harden their positions, including advocating Hong Kong's independence.
- 2019: Massive protests -
The Hong Kong government tries to fast-track a bill allowing extraditions to China's Communist Party-controlled courts, sparking the biggest protests since the handover.
Millions take to the streets during seven months of unrest while a smaller section of hardcore protesters frequently battle police in often violent confrontations that see thousands arrested.
The movement soon morphs into a new call for democracy and police accountability, but is eventually suppressed.
- 2020: Covid-19 -
In January Hong Kong is one of the first places affected by the coronavirus epidemic.
The executive takes drastic measures, including a ban on public gatherings, effectively ending the pro-democracy demonstrations.
- 2020: National Security Law -
In June Beijing passes a national security law for Hong Kong, bypassing the local legislature.
China's security agencies will be able to operate publicly in the city for the first time.
Beijing will have jurisdiction over some cases, toppling the legal firewall that has existed between Hong Kong and mainland courts.
Calls for independence or greater autonomy are banned.
The move sees most pro-democracy leaders either jailed, giving up politics or fleeing abroad.
Several countries say the law has ended the principle of "One Country, Two Systems" approach, which was supposed to be in place until 2047.
- 2021: Electoral reform -
In March China approves a radical "patriots only" reform of the electoral system, which completely sidelines the opposition.
Under new rules, only those deemed politically loyal can stand for office, and the number of directly elected seats is slashed.
- 2022: Xi visits -
Chinese leader Xi Jinping visits Hong Kong for the 25th anniversary of the handover, the halfway point of the 50-year transitionary governance model.
He praises the "One Country, Two Systems" model, saying there is "no reason at all to change and it must be upheld in the long run".
Hong Kong's former security chief John Lee, who oversaw the clampdown on the pro-democracy movement, is sworn in as the city's new leader following a selection process where he faces no rivals.
- 2024: homegrown security law -
In March Hong Kong passes an additional, homegrown national security law, which city leader John Lee said fulfilled "a constitutional responsibility that is overdue for 26 years".
The law -- which stems from a requirement under Hong Kong's Basic Law Article 23 -- punishes five major categories of crimes, including treason, insurrection, espionage, sabotage, and foreign interference, with penalties up to life in prison.
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