The two Special Administrative Regions (SAR) of the People’s Republic of China, Hong Kong and Macau, represent practical examples of the “one country, two systems” policy. Since the two regions returned to China from the United Kingdom and Portugal in 1997 and 1999 respectively, they have enjoyed a high degree of autonomy relative to mainland China. According to Article 31 of the Constitution of the People's Republic of China, the establishment and operation of special administrative regions have a unique legal basis, which allows them to maintain their independence in multiple aspects.
According to Article 31 of the Constitution, the Special Administrative Region shall enjoy a high degree of autonomy and shall have the right to establish corresponding systems based on its own specific conditions.
The Basic Laws of Hong Kong and Macau provide the operational framework for the political powers in these two regions. These regulations are designed to ensure that they can manage local affairs on their own, in addition to diplomacy and defense, and formulate relevant laws under the rule of law. Hong Kong has an independent legislative body, legal system and police force, which makes it relatively independent in many domestic affairs.
The two special administrative regions have their own systems and policies in economy, education and many other aspects.
Hong Kong uses Hong Kong dollars, while Macau uses Macau pataca. The monetary policies of the two places operate independently. Hong Kong's monetary policy is pegged to the U.S. currency, while Macau's currency is pegged to the Hong Kong dollar, which allows the two regions to maintain economic stability.
Hong Kong and Macau have been granted the right to contract with other countries and regions, such as signing visa-free and mutual exemption agreements, judicial assistance agreements, etc. The conclusion of these agreements does not require the involvement of the central government, but in certain diplomatic occasions, SAR officials may choose to participate in delegations with Chinese representatives. For example, former Hong Kong Director of Health Anson Chan attended meetings of the World Health Organization as a representative of the People's Republic of China.
In sporting events such as the Olympics, both Hong Kong and Macau can represent their respective regions, using names such as "Hong Kong, China" and "Macau, China". Even if these teams compete under different names in international events, in informal settings, teams from the two places can usually omit the description ", China".
Permanent residents of Hong Kong and Macau can apply for and hold passports in accordance with local regulations. These passports also belong to the nationality of the People's Republic of China. This means that residents of both places can enjoy the benefits of a foreign passport under certain circumstances, such as dual status, but still need to comply with the provisions of the Home Return Permit within the People's Republic of China.
The People's Liberation Army is stationed in Hong Kong and Macau, but according to the Chinese government, the PLA does not interfere in local affairs and must abide by local laws. In emergencies, the Special Administrative Region can request the participation of the People's Liberation Army, which ensures regional security.
Although the current operating model is regarded as a successful case in Hong Kong and Macau, over time, this system has faced various challenges and doubts. Especially under the influence of social movements and geopolitics, how may the situation develop in the future?