With China's resumption of sovereignty over Macau on 20th December 1999, another step was taken towards the reunification of Greater China. The reunification of Macau as of Hong Kong is based on the principle of “one country, two systems’, under which the socialist systems of the People's Republic of China are not applied in these territories. Instead most constituents of their previous economic, legal and social systems are preserved. In either case China negotiated what are called Joint Declarations for the resumption of sovereignty with the colonial power, under which the terms of “one country, two systems’ were spelled out. China undertook to give effect to the Declarations in Basic Laws, passed by its National People's Congress. Except for defence and foreign affairs, most matters are vested in the new entities, called Special Administrative Regions. The Basic Laws describe the constitutional system established for the regions as being characterised by a “high degree of autonomy’. As such they are an interesting addition to autonomy systems which are increasingly being applied as solutions to problems of divided societies. But the institutional support for the autonomy is particularly weak, and a closer examination of the articulation of the regions with the central authorities suggests that the primary concern in establishing the special administrative regions is less the automony for the people of Hong Kong or Macau as finding a framework for managing different economic systems from those on the mainland (I have developed these arguments in Ghai 1999).
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