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As Macao celebrated the 25th anniversary of its return to the motherland on Friday, Chinese President Xi Jinping was in the island, where he stressed the importance of the "One Country, Two Systems" policy.

The policy, which enables different systems to coexist harmoniously and achieve long-term prosperity, is "a good practice" that should be adhered to for a long time, Xi said, assuring that Macao will open up new horizons for development and keep creating new achievements as long as the policy is implemented comprehensively, accurately and unwaveringly.

Since its return from Portuguese rule in 1999, Macao has witnessed steady economic growth and improved the living conditions of its residents. The city's GDP grew from 51.9 billion patacas ($6.23 billion) in 1999 to 379.5 billion patacas ($45.6 billion) in 2023, while its per-capita GDP more than quadrupled to around $70,000, according to official data. Macao ranks first in Asia and second globally on the Forbes 2024 list of the world's richest places.

The remarkable achievements are attributable to the full implementation of the "One Country, Two Systems" policy – a unique arrangement that allows Macao to maintain its capitalist system within socialist China.

Under the policy, the people of Macao administer Macao, and this has ensured the city's high degree of autonomy. For instance, while the gaming industry is banned on the mainland, Macao is known as the "gaming capital" of the world. According to Statista, the gaming industry, accounting for 37.2 percent of Macao's GDP, has created more than 54,000 job opportunities in the region.

The "One Country, Two Systems" policy also means Macao enjoys vigorous support of the central government and the mainland. For more economic resilience, Macao, with the support of the mainland, has made progress in diversifying its economy from the gaming industry to the high-tech sector, modern financing and other key industries in recent years.

Cooperative mechanisms such as the Guangdong-Hong Kong-Macao Greater Bay Area, the Guangdong-Macao In-Depth Cooperation Zone, and infrastructure projects including the Hong Kong-Zhuhai-Macao Bridge, which has slashed travel time from Hong Kong to the Chinese mainland from over four hours to a mere 40 minutes, provide Macao with abundant opportunities to prosper.

The cooperation zone, for example, is attracting an increasing number of enterprises with its business-friendly environment since it was established in September 2021. As of September 2024, more than 6,400 companies from Macao had established operations in Hengqin, the island in Zhuhai where the cooperation zone is located, marking a growth of nearly 40 percent in the past three years. This has tremendously contributed to the development of Macao's high-tech industries.

Xi said the Guangdong and Macao local governments must ensure that everything built in the Hengqin cooperation zone is in line with Macao's economic diversification and improves the well-being of the local people.

Under the "One Country, Two Systems" policy, Macao has become a window for China's opening-up to the world. The first batch of Chinese students who studied abroad set off from Macao, Xi said. Chinese classics spread to the rest of the world from Macao, while modern technologies and cultures from the West were introduced to the Chinese mainland via the city.

Today, Macao maintains its status as a separate customs territory and a free port, playing a unique role in promoting economic cooperation between China and the rest of the world. The World Trade Organization, for instance, recognizes Macao as one of the most open economies in the world for trade and investment.

Economic diversification and opening-up are also among Xi's four demands for Macao's new government in Friday's speech. Xi also called for administrative efficiency and social harmony against the backdrop of profound changes domestically and internationally.

To meet Xi's four demands, Macao's adherence to the "One Country, Two Systems" policy is essential. Sticking to the cornerstone of "One Country" and leveraging the institutional strengths of "Two Systems" has repeatedly turned out to be a key for Macao's security and development.

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