What is China’s One Country, Two Systems Policy?

GS2: International Relations

Context:
Origin of the Policy:
The concept was introduced by Deng Xiaoping during the 1970s.

• Deng envisioned using the One Country, Two Systems model to unify China and Taiwan.
• Taiwan, however, rejected this proposal and has continued to operate independently from mainland China, although Beijing has never relinquished its claim over the island.

Resurgence of the Idea:
The One Country, Two Systems idea gained traction when Beijing began negotiations with Britain and Portugal, the colonial powers governing Hong Kong and Macau respectively.

• Hong Kong was ceded to Britain in 1842 after the First Opium War.
• In 1898, the British and the Qing dynasty signed the Second Convention of Peking, granting Britain control of the New Territories on a 99-year lease, set to expire in 1997.
• Macau, meanwhile, had been under Portuguese rule since 1557, with troop withdrawals beginning in the mid-1970s.

During negotiations for the transfer of these regions, Beijing pledged to uphold their autonomy under the One Country, Two Systems framework.

Transfer of Territories:

1. Hong Kong:
   • On December 19, 1984, China and the UK signed the Sino-British Joint Declaration, outlining the terms for Hong Kong’s governance, economy, and legal framework post-1997.
   • Hong Kong was handed back to China on July 1, 1997.
2. Macau:
   • On March 26, 1987, China and Portugal signed the Joint Declaration on the Question of Macau, which guaranteed similar arrangements for Macau after its handover.
   • Macau’s sovereignty was transferred on December 20, 1999.

Both territories became Special Administrative Regions (SARs) of China, with their own currencies, legal systems, and economic policies, while Beijing retained authority over defence and foreign affairs. Their respective mini-Constitutions were guaranteed for 50 years — until 2047 for Hong Kong and 2049 for Macau. What happens after these deadlines remains uncertain.