Historical Context
In the late 19th century, the Qing Empire ceded Hong Kong to Great Britain as part of a series of treaties ending the Opium Wars. Under these treaties, a majority of Hong Kong was leased to Great Britain for 99 years. In the 1980s, British Prime Minister Margret Thatcher and Deng Xiaoping, leader of the Chinese Communist Party (CCP), entered into negotiations regarding the framework for the transfer of Hong Kong back to mainland China, also known as the People’s Republic of China (PRC). During these negotiations, Deng introduced the One Country, Two Systems policy as a way of absorbing the region without requiring it to immediately conform to mainland economic and political standards, as well as compromising with Britain, who technically owned Hong Kong Island and the nearby Kowloon Peninsula in perpetuity. Under the declaration, signed in 1984, Hong Kong’s economic and social systems would remain unchanged for at least 50 years. After the implementation of this policy in Hong Kong, it was also applied to Macau when it was ceded by Portugal in 1999.
What is “One Country, Two Systems”?
One Country, Two Systems describes mainland China’s policy regarding its relationship to Hong Kong, Macau, and Taiwan. Under this policy, the PRC views Hong Kong, Macau, and Taiwan as Special Administrative Regions (SAR’s) with local governments that have more authority than the CCP usually grants. While China is governed by a one-party communist dictatorship, Hong Kong and Macau operate as capitalist societies with varying degrees of democracy. Macau’s government more closely resembles that of the mainland due to a largely pro-CCP population, while Hong Kong has a stronger democratic tradition. In contrast, Taiwan is more or less a fully independent country that does not recognize CCP authority.
While Hong Kong and Macau’s statuses as SARs allows them to operate under different systems from mainland China and remain semi-autonomous, they still must recognize the existence of one unified China. This is because one of the CCP’s key foreign policy goals and a matter of national pride is the existence of a unified China that includes Hong Kong, Macau, and Taiwan. Thus, the CCP often requires countries to recognize their sole authority under “One Country, Two Systems” in order to have normal trade relations with China.
Key government officials in Hong Kong and Macau must be approved by the CCP and deemed to be patriots. Additionally, the power of interpretation of the Basic Law, a constitution-like document for these Special Administrative Regions, also lies with the mainland. Furthermore, matters of defense and foreign affairs are under the CCP’s control. Essentially, the CCP reserves the right to interfere in the affairs of the SAR’s when those affairs affect the sovereignty or unity of China. Another more pragmatic reason for imposing the One Country, Two Systems policy is because China wanted to leverage the advantages of the region’s free markets. By utilizing the existing capitalist systems, they have served as a bridge between capitalism and socialism, opening China up to more foreign capital and supplementation and supporting the growth of the socialist economy.
US Relationship to the Policy
As of 1979, the United States recognises the PRC as the legitimate, sole ruler of China. While the US acknowledges mainland China’s claim that Taiwan is a part of China, it still maintains unofficial ties with Taiwan’s government and a strong commitment to protecting Taiwanese security, due to Taiwan’s geopolitical importance. Similarly, the US maintains that Hong Kong is “an independent customs territory and economic entity separate from the PRC and can separately enter into international agreements,” and is committed to Hong Kong’s prosperity, autonomy, and way of life.
Recently, China has publicly stated its intention to fold Taiwan into the mainland under the One Country, Two Systems model, but has met heavy resistance from both the government and citizens of Taiwan. China will be the biggest international challenge to the United States in the coming decades due to its recent economic and military ascendancy.
