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A Special administrative region (SAR) :
is an administrative division of the People's Republic of China (PRC). The PRC at present has two SARs, namely Hong Kong and Macau. Each SAR has a Chief Executive as head of the region and head of government.
圖片參考:
http://upload.wikimedia.org/wikipedia/commons/thumb/2/28/PR_China-SAR_%26_SEZ-Chinese.png/300px-PR_China-SAR_%26_SEZ-Chinese.png
Background:
Article 31 of the Constitution of the People's Republic of China authorizes the National People's Congress to create special administrative regions.
Two special administrative regions, namely Hong Kong and Macau, were created in 1997 and 1999 respectively. Each of the SARs has a Basic Law which provides the region with a high degree of autonomy, a separate political system and a capitalist economy under the principle of "one country, two systems", which was proposed by Deng Xiaoping.
圖片參考:
http://upload.wikimedia.org/wikipedia/zh/thumb/f/fe/Hk_map_18_Chinese.png/280px-Hk_map_18_Chinese.png
High degree of autonomy:
Currently, the two SARs of Hong Kong and Macau are responsible for all issues except acts of state like diplomatic relations and national defence: consequently, they have their own judiciaries and courts of final appeal, their own legislature, immigration policies, currencies and extradition processes. The pre-existing legal systems, namely common law in Hong Kong and Portuguese law in Macau, are preserved except consequential to establishment of courts of final appeal.
With listed exceptions, national laws applying in the mainland do not apply in a SAR. These listed exceptions must involve diplomacy, national defence or something beyond the scope of the SAR's autonomy.
圖片參考:
http://upload.wikimedia.org/wikipedia/zh/b/b3/HK_map.png