The People's Republic of China, at present, has two Special Administrative Regions, Hong Kong and Macau, and they should not be confused with Special Economic Zones, which are regions fully under the administration of the Central People's Government. Article 31 of the Constitution of the People's Republic of China authorizes the National People's Congress to create Special Administrative Regions. 

Special situation

High degree of autonomy

Currently, the two SARs of Hong Kong and Macau are responsible for all issues except acts of state like diplomatic relations and national defence: consequently, they have their own judiciaries and courts of final appeal, their own legislature, immigration policies, currencies and extradition processes. The pre-existing legal systems, namely common law in Hong Kong and Portuguese law in Macau, are preserved except consequential to establishment of courts of final appeal.

With listed exceptions, national laws applying in the mainland do not apply in a SAR. These listed exceptions must involve diplomacy, national defence or something beyond the scope of the SAR's autonomy.

Suffrage in the National People's Congress

Like other administrative divisions of the PRC, Hong Kong and Macau are represented in the National People's Congress, although suffrage is not well-defined and is not open to the general public. However, their representation is not prescribed in the constitution of the PRC, unlike provinces, autonomous regions, municipalities and the People's Liberation Army.

Before Hong Kong and Macau became Special Administrative Regions of the PRC, they were under colonial rules by Britain and Portugal respectively. They had representation in the National People's Congress of the PRC through Guangdong Province, which shares the borders with Hong Kong and Macau.

External affairs

Special Administrative Regions are empowered to contract a wide range of agreements with other countries and territories such as mutual abolition of visa requirement, mutual legal aid, air services, extradition, handling of double taxation and others. In diplomatic talks involving an SAR, the SAR concerned may send officials to be part of the Chinese delegation.

The two territories compete separately from Mainland China in international sporting events.

Defence and military

The People's Liberation Army is garrisoned in both the SARs. The garrison and its members must obey all SAR laws as well as national laws applicable to them. They do not participate in the governance of the SAR but the SAR may send for them in times of emergency such as natural disasters. According to the basic laws, defence is the responsibility of the Central People's Government. There is no law providing for enrollment of Hong Kong and Macau residents in the forces during ordinary times, and no Hong Kong and Macau residents are currently enrolled.

Immigration and nationality

Each of the SARs issue passports on its own, only to its permanent residents who are concurrently nationals of the PRC, that is, PRC nationals satisfying one of the following conditions:

• born in the SAR;
• born anywhere while either parent was a permanent resident of the SAR;
• resided continuously for seven or more years in the SAR.

Apart from affording the holder consular protection by the People's Republic of China, these passports also specify that the holder has right of abode in the issuing SAR.

The National People's Congress has also put each SAR in charge of administering the PRC's Nationality Law in its respective realms, namely naturalisation, renunciation and restoration of PRC nationality and issuance of proof of nationality.

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