Portugal and the PRC signed the Joint Declaration on the Question of Macau, setting the terms and timetable for ending Portuguese administration and establishing Macau as a Special Administrative Region (SAR) under the PRC on 1999-12-20.
The Joint Declaration entered into force after ratification, formalizing the agreed transition framework and initiating the run-up to drafting Macau’s constitutional order under “one country, two systems.”
China’s National People’s Congress adopted the Basic Law of the Macao SAR, creating the constitutional blueprint for governance, rights, and the division of responsibilities between Macau and the central authorities after 1999.
A Chief Executive Selection Committee was formed to choose Macau’s first post-handover leader, a key preparatory step in setting up the SAR’s executive-led political system before the transfer of administration.
The Selection Committee selected Edmund Ho Hau Wah as Chief Executive-elect, establishing the leadership that would guide the initial transition and early institutional consolidation of the Macao SAR.
China’s legislature adopted the Macao SAR Garrison Law (effective on handover day), providing the legal basis for the PLA’s defense role in Macau while emphasizing non-interference in local affairs except under defined conditions.
At midnight, Portugal transferred Macau to the PRC; the Macao Special Administrative Region was established, and Macau began operating under “one country, two systems.” The Basic Law took effect the same day.
The People’s Liberation Army entered Macau and began defense duties as the Macao Garrison, symbolizing resumed sovereignty while operating under the Basic Law and the Garrison Law framework.
Macau held elections for the 1st Legislative Assembly under Chinese rule, filling the directly elected portion of the legislature and marking an early test of the SAR’s post-1999 political arrangements.
Macau enacted Law No. 16/2001 (casino gaming legal framework), providing the statutory foundation for licensing and regulating casino operations that would underpin later liberalization and rapid economic expansion.
Macau’s government awarded new gaming concessions, ending STDM’s long-standing monopoly and launching a competitive concession system that accelerated integration of Macau’s economy with regional and global capital flows.
The central government and the Macao SAR signed the Mainland and Macau Closer Economic Partnership Arrangement (CEPA), a cornerstone integration instrument granting preferential market access and deepening cross-border trade in goods and services.
Macau and the Mainland signed CEPA Supplement III, part of a stepwise liberalization process that expanded sectoral access and updated origin and services provisions to facilitate greater economic integration.
Beijing approved an overall development plan for Zhuhai’s Hengqin (adjacent to Macau), explicitly positioning it as a platform for cooperation with Macau and for supporting Macau’s longer-term economic diversification.
Chui Sai On succeeded Edmund Ho as Chief Executive, reflecting leadership turnover within Macau’s executive-led system and continuing policies aimed at stability, growth, and closer coordination with central authorities after rapid post-2002 expansion.
Guangdong Province and the Macao SAR signed a formal cooperation framework agreement, institutionalizing cross-border coordination (including around Hengqin) and reinforcing Macau’s integration into the Pearl River Delta’s regional governance and development agenda.
Macau Handover and Integration into the PRC Framework (1987–2010)
