One country, two systems

"One country, two systems" (一国两制) is an idea originally proposed by the leader of Communist Party of China, Deng Xiaoping in 1984, formulated in response to the Hong Kong handover talks with Prime Minister of the United Kingdom Margaret Thatcher.

The principle is that while mainland China practices socialism, the former colonies of Hong Kong and Macau can practice capitalism under local autonomy for fifty years, after being handed over to the People's Republic of China (PRC).

These areas, which are called Special administrative regions (SARs) are authorized by Article V of the Constitution of the People's Republic of China. Hong Kong and Macau were handed over to the People's Republic of China by the United Kingdom (July 1, 1997) and Portugal (December 20, 1999) respectively. In Hong Kong, the system has been implemented through the Basic Law of Hong Kong consistent with the Sino-British Joint Declaration. Similar laws are in place with Macau.

This system has also been proposed by the PRC government for Taiwan, but the Republic of China government has refused this offer. Within Taiwan, opinions toward OCTS tend to be highly negative with polls consistently showing 80% opposition and only about 10% support. All of the major parties in Taiwan, including those that support Chinese reunification have come out strongly against one country two systems. One of the very few Taiwanese who have publicly supported OCTS is novelist Li Ao.

Whilst Hong Kong and Macau have largely maintained their free market economies, in practice, much of the surrounding regions of China are becoming similarly market economies. Whether the differences in freedom to express one's political opinions will also be maintained is, in the eyes of Western observers and human rights organisations, an important question and one which currently has ambiguous answers, as exemplified by the debate around Hong Kong Basic Law Article 23.