One Country, Two Systems - Hong Kong and Macau

Hong Kong and Macau

See also: Sino-British Joint Declaration and Joint Declaration on the Question of Macau

In 1984, Deng Xiaoping proposed to apply the principle to Hong Kong in the negotiation with the British Prime Minister, Margaret Thatcher over the future of Hong Kong when the lease of the New Territories (including New Kowloon) of Hong Kong to the United Kingdom was to expire in 1997. The same principle was proposed in talks with Portugal about Macau.

The principle is that, upon reunification, despite the practice of socialism in mainland China, both Hong Kong and Macau, which were colonies of the UK and Portugal respectively, can retain their established system under a high degree of autonomy for at least 50 years after reunification. What will happen after 2047 (Hong Kong) and 2049 (Macau) has never been publicly stated.

Chapter 1, Article 5 of the Hong Kong Basic Law, the constitutional document of the Hong Kong Special Administrative Region, reads:

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The socialist system and policies shall not be practised in the Hong Kong Special Administrative Region, and the previous capitalist system and way of life shall remain unchanged for 50 years.

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The establishment of these regions, called special administrative regions (SARs), is authorized by Article 31 of the Constitution of the People's Republic of China, which states that the State may establish SARs when necessary, and that the systems to be instituted in them shall be prescribed by law enacted by the National People's Congress in light of the specific conditions.

The SARs of Hong Kong and Macau were formally established on 1 July 1997 and 20 December 1999 respectively, immediately after the People's Republic of China (PRC) assumed the sovereignty over the respective regions.