Explainer: Q&A on China's "one country, two systems" policy

MACAO, Dec. 18 (Xinhua) -- As China prepares to mark the 25th anniversary of Macao's return to the motherland this week, the city stands as a testament to the success of the "one country, two systems" policy.

Macao and its neighbor Hong Kong are China's two special administrative regions (SARs) governed under this policy since the Chinese government resumed its exercise of sovereignty over them following long periods of Portuguese and British colonial rule.

So what exactly is "one country, two systems"? What are its distinctive features, and how does it influence China and the world at large?

This Q&A aims to answer some frequently asked questions.

Q: What do "one country" and "two systems" mean?

A: "One country, two systems" is a basic state policy China adopted to realize peaceful reunification.

"One country" refers to a unified country, which is the People's Republic of China. The central government has overall jurisdiction over its SARs. For example, the central government is responsible for foreign affairs relating to Hong Kong and Macao, and the defense of the two regions. The two SARs' chief executives, after being elected locally, are appointed by the central government.

"Two systems" means the SARs adopt different social systems and policies from those on the mainland. This allows Hong Kong and Macao to maintain their capitalist systems and ways of life within socialist China. Macao's gaming industry is an example of this policy in practice, as casino gambling is illegal on the mainland.

Q: When and under what circumstances was the concept first proposed?

A: The idea was the brainchild of Deng Xiaoping and other Chinese leaders of his generation. Deng said the concept was proposed to reunify the country, initially with Taiwan in mind. The island province has not been reunified with the mainland for decades as a result of the unresolved civil war dating back to the late 1940s.

In the early 1980s, the "one country, two systems" concept was formally put forward and first applied to solve the question of Hong Kong, when the Chinese and British governments began formal negotiations for the handover.

According to Deng, achieving reunification through peaceful negotiation requires that the terms be acceptable to all parties. Regarding Hong Kong, he said a socialist transformation would not be acceptable to all parties, referring to Britain and most residents of Hong Kong in particular. Therefore, the "one country, two systems" formula was proposed.

Q: What is the rationale behind this policy and what issues does it address?

A: "One country, two systems" was applied to facilitate the return of Hong Kong and Macao to the motherland, while respecting their distinct social systems and economic structures.

The policy balances the principle of national reunification and territorial integrity with the need to acknowledge the historical realities and current situations of these regions. Its flexibility is seen as key to addressing the complexities of integrating areas with different ideologies and social systems into the People's Republic of China, while ensuring their long-term prosperity and stability.

Q: What is the legal basis for "one country, two systems"?

A: The legal basis of "one country, two systems" lies in China's Constitution as well as the basic laws of the Hong Kong and Macao SARs.

According to Article 31 of the Chinese Constitution, the state may establish SARs when necessary. The systems instituted in SARs shall, in light of specific circumstances, be prescribed by laws enacted by the National People's Congress, China's top legislature. This article provides the constitutional basis for the establishment of SARs that adopt different social systems.

Q: What are some examples of the practice of "one country, two systems" in Hong Kong and Macao?

A: Under "one country, two systems," Hong Kong and Macao can independently make and enforce their respective tariff policies, as well as implement their own customs tariff and trade rules. For instance, the Macao SAR can join international trade pacts as "Macao, China."

Hong Kong and Macao can issue their own currencies -- the Hong Kong dollar and the Macao pataca. As international cities, Hong Kong and Macao have kept English and Portuguese respectively as their official languages besides Chinese.

The basic laws also provide that the two SARs exercise independent judicial power, including that of final adjudication. The Macao SAR's Court of Final Appeal, for example, has the power to make final verdicts on local cases.

However, the exercise of judicial power must abide by the Constitution and the basic laws, and safeguard national unity and territorial integrity. For concerns of national sovereignty and security, the courts of the SARs have no jurisdiction over acts of state such as defense and foreign affairs.

Q: What is the significance of "one country, two systems" for China and the world at large?

A: The policy ensured the smooth return of Hong Kong and Macao to China through peaceful means, avoiding violence and strife that had occurred in similar situations elsewhere in the world. It has also sustained and further boosted the two SARs' prosperity.

Embodying the idea of "seeking common ground and putting differences aside," the policy can serve as a reference for resolving complex issues in the international community.

Q: Is there a time frame for maintaining "one country, two systems" in Hong Kong and Macao?

A: According to the basic laws of both SARs, the existing capitalist system and way of life shall remain unchanged for 50 years.

The Chinese central government has reiterated that it will remain resolute in implementing the policy, and will not change or vacillate in this stand.

The central leadership has lately expressed the intention to maintain the policy in the long run as it serves the fundamental interests of Hong Kong, Macao and the nation as a whole, and has gained broad support both home and abroad.

Q: Will the "one country, two systems" policy apply to Taiwan in the future?

A: In fact, the policy was initially proposed to resolve the Taiwan question. The central authorities have reiterated that the principles of "peaceful reunification" and "one country, two systems" are the best approach to realizing full national reunification.

A government white paper issued in 2022 stated explicitly that once peaceful reunification is achieved under "one country, two systems," it will lay new foundations for China to make further progress and achieve national rejuvenation. At the same time, it will create huge opportunities for social and economic development in Taiwan and bring tangible benefits to the people of Taiwan.

Provided that China's sovereignty, security and development interests are guaranteed, Taiwan will enjoy a high degree of autonomy as a special administrative region after reunification, said the white paper, titled "The Taiwan Question and China's Reunification in the New Era."