[Global Issue+] Why Is Macau, an 'One Country, Two Systems' Region Like Hong Kong, So Quiet?

The appearance of a Macau casino
[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Despite international concerns, the Chinese government passed the Hong Kong National Security Law, intensifying not only the protests of Hong Kong citizens but also the conflict between the U.S. and China. However, Macau, located right next to Hong Kong and also operating under the "one country, two systems" framework, remains very quiet. This is a stark contrast to Taiwan, which is also outraged by the Hong Kong situation. In fact, Macau passed its National Security Law back in 2009 without any opposition. What could be the reason for this?

Foreign media such as the BBC reported on the death of Stanley Ho, Macau's biggest casino tycoon, on the 26th, along with coverage of Macau's situation immediately after its handover to China in 1999. The background to Macau's growth into a world-class casino city began after China's reform and opening-up in 1978, when wealthy mainland Chinese investors started pouring money into Macau's gambling establishments. Unlike Hong Kong, which emerged as an international financial hub under British colonial rule, Macau was heavily dependent on Chinese capital even before the handover.

Generally, it is known that both Hong Kong and Macau were colonies of Western powers before being handed back to China and designated as Special Administrative Regions, maintaining the "one country, two systems" policy for 50 years after the handover. However, there are significant differences in their historical origins and the resentment local residents feel toward China.

The appearance of St. Paul's Cathedral in Macau, built in the early Portuguese colonial period in 1580. It was completely destroyed by a great fire in 1835, leaving only the front facade.
[Image source=Reuters Yonhap News]

Macau has a completely different history from Hong Kong, which was ceded to Britain after the Qing Dynasty's defeat in the Opium War in 1842. Macau was not land taken by Portugal through war with China. Macau's origins date back to 1542 when a Portuguese expedition was defeated by the Ming Dynasty forces in northern Hong Kong and subsequently leased small islands around Macau by paying bribes. For over 300 years, Macau paid annual land rent to the Ming and Qing governments, so strictly speaking, it cannot be called a colony.

The Portuguese maintained good relations with the Ming and Qing courts by supplying spices from Southeast Asia that China needed. During the Japanese invasions of Korea (Imjin War), they even sent mercenary troops at the Ming court's request. The "Haegwi," a black mercenary unit from the Ming Dynasty mentioned in the Annals of King Seonjo, is said to have been sent by Macau's merchant guild. Having maintained close ties for centuries, the Chinese did not harbor much resentment toward the Portuguese in Macau.

After the Opium War, treaties between the Qing Dynasty and Portugal were renewed, making Macau an official Portuguese colony. However, Macau lagged far behind Hong Kong industrially and gradually became a hinterland for Hong Kong. Gambling dens, drug smuggling, and gangs expelled from Hong Kong flowed into Macau, laying the foundation for what is now known as the world's largest gambling city.

Stanley Ho, known as a tycoon in the Macau casino industry [Image source=Reuters Yonhap News]

Portugal itself had become a minor power in Europe since the 18th century, and from 1932 to 1974, the Salazar regime's dictatorship led to neglect in managing overseas colonies. Eventually, from the 1970s, Portugal began granting independence or returning its troublesome colonies, including Macau, which had become a crime-ridden city. Even the Chinese government initially refused to accept Macau, not wanting to take it back.

However, after the 1984 Sino-British agreement on Hong Kong's handover, Macau's return was bundled into the same atmosphere, and China finally decided to take it back, which happened in 1999. At that time, Macau's population was only about 430,000, less than a tenth of Hong Kong's. Due to the very small population, the Portuguese government granted Portuguese nationality to all Macau residents at the time of the handover. Thanks to this, existing Macau residents could move to Portugal anytime. Since Portuguese nationality law follows jus sanguinis, children of Macau residents at the time of the handover could also acquire Portuguese nationality.

This is the biggest difference from Hong Kong. The British government only allowed immigration applications to residents born before the handover and granted British nationality only to the middle and upper-class elites who could pass immigration screening. The rest of the residents had to accept Chinese nationality regardless of their wishes. As a result, Macau residents could move to Portugal or any European Union (EU) member country whenever they disagreed with the Chinese government.

Moreover, after the handover, Chinese capital investment in Macau became more active, transforming Macau into a wealthy region with a per capita GDP exceeding $80,000. Chinese military and police forces cracked down on gangs and organized crime groups that had effectively controlled the city, stabilizing public security and boosting the economy. Unlike Hong Kong, resentment did not grow. Ultimately, due to completely different historical, cultural, and economic circumstances from the root, the resentment toward the Chinese government had to be different.