ABSTRACT
Political developments in the Hong Kong Special Administrative Region (SAR) have been quite different from those in the Macao SAR since re-unification with the People s Republic of China. Political conflicts m Hong Kong has been expressed mainly through large-scale demonstrations organized by democratic groups Re-unification Day and New Year's Day. This chapter presents the principles of conflict and harmony for political development. Through reviewing the existing literatures, it attempts to explore the relations between the two and the best way to balance them in the case of Hong Kong and Macao SARs. The SAR Government adopted a successful positioning by developing tourism and gaming industries as the flagship sector of Macao, whilst also coordinating other industries. The Beijing government also adopted efficient measures in a Closer Economic Partnership Arrangement (CEPA) and a permit scheme to allow mainland residents to visit Macao individually.
