"Involving and Integrating ‘Capitalist’ Special Administrative Regions in ‘Socialist’ National Development of China"
in Routledge Handbook of Constitutional Law in Greater China, ed. by Ngoc Son Bui, Stuart Hargreaves, and Ryan Mitchell (Routledge, Dec 29 2022), Chapter 15, pp. 236-250
Abstract: This chapter considers the tensions and flexibility in the implementation of the basic policies of the People's Republic of China (PRC) regarding Hong Kong and Macao of ‘One Country, Two Systems’, whereby, upon resumption of exercise of Chinese sovereignty over these territories, the PRC was to establish Special Administrative Regions of separate systems to maintain the territories as ‘capitalist’ economically and socially. National reunification was on the agenda of the Communist Party of China when it emerged from the chaos of the Cultural Revolution, began to chart a course for modernization of China and achieved normalized relations with Japan and the United States. The CPC leadership decided in March 1981 to recover Hong Kong from the United Kingdom and to adopt Deng Xiaoping's approach of the PRC, which practises the socialist system, allowing Hong Kong to continue to practise its capitalist system. The PRC's State Authorities, in the meantime, prepared the mechanism for the administration of the reunified territories.