Special administrative region

Article 31 of the Constitution of the People's Republic of China authorizes the National People's Congress to create special administration regions and to create a basic law which provides those regions with a large degree of internal autonomy, a separate (semi-democratic) politicial system and a capitalist economy.

The PRC has offered the Republic of China on Taiwan a similar status to that of an SAR if it accepts mainland rule; however the ROC government refuses to accept the offer.

The SARs of the PRC are members of the WTO, even though they are not sovereign states, because they form their own customs areas and hence have their own international trade policies.

See also: Special Economic Zone