December 20, 2024, marks a significant milestone as the Macao Special Administrative Region (MSAR) celebrates the 25th anniversary of its establishment. On this day in 1999, the People’s Republic of China (PRC) resumed the exercise of sovereignty over Macao under the “one country, two systems” policy. This unique framework has since allowed Macao to flourish economically while maintaining its distinct social and legal systems.
Under the “one country, two systems” policy, Macao has preserved its low-tax status and expanded its tourism and leisure industries. As a distinct customs territory, it has upheld a free trade policy without foreign exchange controls, facilitating the free movement of goods, intangible assets, and capital. Since 2003, the MSAR benefited from the Closer Economic Partnership Arrangement with the Chinese mainland, providing preferential access to mainland markets and bolstering trade and investment opportunities.
The central government in Beijing has continuously supported Macao’s economic development and diversification efforts. The MSAR plays a pivotal role in the Belt and Road Initiative (BRI), enhancing China’s global connections and contributing to intensified economic growth. As part of the BRI, efforts have been made to integrate Macao and Hong Kong, leveraging their strengths to create synergies for sustainable regional development.
In 2017, with the presence of Chinese President Xi Jinping, Macao officials signed the Framework Agreement on Deepening Guangdong-Hong Kong-Macao Cooperation in the Development of the Greater Bay Area (GBA). The GBA is an ambitious plan to integrate the three constituent parts—Guangdong, Hong Kong, and Macao—with their distinct economic, social, and legal structures. This integration aims to foster mutual development and enhance the international competitiveness of the region.
Over the past five years, the construction of the GBA has led to impressive infrastructure projects that facilitate exchanges within the region. The completion of the Hong Kong-Zhuhai-Macao Bridge (HZMB) in 2018, the world’s longest sea-crossing bridge, has significantly improved connectivity by reducing travel time and transportation costs between the three cities. In recent years, travel between GBA cities has been further eased by allowing Hong Kong and Macao residents to use their private cars for travel to the Chinese mainland, enjoying exemptions from customs duties.
As Macao commemorates its 25th anniversary as a Special Administrative Region, the progress made in economic diversification and regional integration showcases the success of the “one country, two systems” policy. With continued support from the central government and ongoing collaboration within the Greater Bay Area, Macao is poised for a future of sustained growth and prosperity.
Reference(s):
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