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Concept
One country, two systems
Summary
"One country, two systems" is a constitutional principle of the People's Republic of China (PRC) describing the governance of the special administrative regions of Hong Kong and Macau.
The constitutional principle was formulated in the early 1980s during negotiations over Hong Kong between China and the United Kingdom. It provided that there would be only one China, but that these regions could retain their own economic and administrative systems, while the rest of mainland China uses the socialism with Chinese characteristics system. Under the principle, each of the two regions could continue to have its own governmental system, legal, economic and financial affairs, including trade relations with foreign countries, all of which are independent from those of the mainland. The PRC has also proposed to apply the principle in the unification it aims for with Taiwan.
However, since 2020, as a result of the passage of the National Security Law by Hong Kong on 30 June of the same year, the United States and United Kingdom condemned the Chinese government of seriously breaching the principle.
History of Hong Kong
Hong Kong was a colony of the United Kingdom, ruled by a governor appointed by the monarch of the United Kingdom, for 156 years from 1841 (except for four years of Japanese occupation during WWII) until 1997, when it was reverted to Chinese sovereignty. China agreed to accept some conditions, as is stipulated in the Sino-British Joint Declaration, such as the drafting and adoption of Hong Kong's "mini-constitution" Basic Law before its return. The Hong Kong Basic Law ensured that Hong Kong will retain its capitalist economic system and own currency (the Hong Kong Dollar), legal system, legislative system, and same human rights and freedoms, as a special administrative region (SAR) of China for 50 years. Set to expire in 2047, the current arrangement has permitted Hong Kong to function as its own entity under the name "Hong Kong, China" in many international settings (e.g. the WTO and the Olympics).
Official source
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