Macao is one of the two Special Administrative Regions set up in the People’s Republic of China, the other being *Hong Kong. Macao is a small peninsula port at the head of the Pearl River delta, with Hong Kong on the other side of the delta. Macao’s status as a Special Administrative Region, since December 1999, reflects its earlier colonial past. Its colonial history has been long-running, Macao being the first and last European holding in China. Portuguese traders first settled in Macao in the 16th century, subsequently administering the territory until the handover to China in 1999.