Under the terms of a secret agreement reached between China and Portugal in 1979, Portugal was to continue administering Macao but sovereignty was transferred to China. Eight years later however, the Sino–Portuguese agreement on Macao's future was signed, which stipulated that it would become a Chinese Special Administrative Region on 20 December 1999. Whereas the transitional stage from Portuguese to Chinese administration began in 1987, political development started in 1976 when the principle of democracy was introduced into the colonial legislature (two years after a military coup had toppled the regime of Marcello Caetano in Portugal). This article will explore aspects of Macao's political development since the Portuguese revolution in 1974.

The China Quarterly Two major factors have continued to impair diplomatic relations between the People’s Republic of China and the Vatican, namely, the so-called “two-China” problem and the independence issue. China regards the Vatican’s diplomatic relations with Taiwan as an infringement of her sovereignty, and insists they are terminated prior to her consideration of a resumption of relations (broken off in 1958) with the Holy See. The Vatican is now the only state in Europe to maintain diplomatic links with Taiwan. Moreover, the Chinese Catholic Church wishes to remain independent of the Pope in Rome. This issue is manifested in the “self-consecration” of bishops in China without seeking the Pope’s prior approval. The “two-China” problem is basically a political and diplomatic one whereas the independence issue has religious as well as political implications. Both China and the Vatican recognize the existence of these two areas of dispute but they differ in their approach towards achieving a possible resolution. China demands that the Vatican should take steps to solve the “two-China” problem before China is ready to discuss the independence question, whereas the Vatican expects China to concede on the latter point first by acknowledging the Pope as the head of the universal Church, before proceeding to discuss other matters, including the status of the Vatican’s diplomatic ties with Taiwan. These different approaches lead to the present stalemate. Each side is expecting the other to take the initiative to overcome the apparent deadlock.

Since 1980, in their pursuit of economic development, reformist Chinese Communist Party (CCP) leaders have decentralized personnel administration and transferred formal authority over some personnel matters to state institutions. To manage its more complex economy, Party authorities have been forced to select professionals and specialists based in part on their technical qualifications and job performance. To a limited extent, the Party has begun to place personnel management in the hands of experts who are competent to assess the qualifications and work of their peers, and directly in the hands of employing institutions. The CCP has beat a limited, if unsteady retreat.