The name "Macau" is derived from the name of a Chinese goddess, popular with seafarers and fishermen, known as A-Ma or Ling Ma.

According to legend, a junk sailing across the South China Sea one clear day found itself in a sudden storm. Everybody on board was about to give up all hope of surviving this natural calamity, when an attractive young woman, who had boarded the ship at the very last minute, stood up and ordered the elements to calm down. Miraculously, the gale winds stopped blowing and the sea became calm. Without further incident, the junk arrived safely at the port of Hoi Keang.

The young woman stepped ashore and walked to the crest of the nearby Barra Hill where, in a glowing halo of light and perfume, she ascended into heaven. On the particular spot where she set foot on land, a temple was built in homage to her.

In the 16th century, when Portuguese sailors landed and asked the name of the place, the natives replied A-Ma-Gao (Bay of A-Ma). So the peninsula was renamed. In modern usage, Amagao was shortened to Macau.

However, Macau has always displayed an atmosphere which made it different from the surrounding areas. Today it is still this mixture of the Chinese and Portuguese cultures harmoniously maintained and developed by its people that makes this place a specific cultural entity.

Macau is a Special Administrative Region of the People's Republic of China since 20 December 1999 and will maintain its social and economical characteristics in accordance to the principle of "One country, two systems".

Macau of tiny dimensions possesses the highest population rate in the world but the per capita income is one of the highest in Asia. There is a cosmopolitan atmosphere, tolerant in practices and living experiences, where, as always, Asia meets Europe and where the Mediterranean cultures live side by side with the Chinese one.

Situated on the Southeastern coast of China in the Guangdong Province, Macau is 60 kilometers west of Hong Kong and 145 kilometers south of Guangzhou, the capital of Guangdong Province. The territory comprises a peninsula and two islands and the total area is 23.8 square kilometers.

The zone which is nowadays called Macau was at first inhabited by fishermen coming from the China province of Fujin and Guangdong, which used the coves between the islands and harbours in this area in order to repair their ships and to get fresh supplies of drinking water.

In 1887, the Portuguese government forced the weak and corrupt Qing government to sign the Sino-Portuguese Treaty of Amity and Commerce which provided that "Portugal will permanently govern Macao and areas under its jurisdiction, in the same way that other places are governed by Portugal". Thus, Macao became an area under Portuguese administration based on unequal treaty.

After the People's Republic of China was founded on October 1, 1949, the Central People's Government declared explicitly that China does not recognize any unequal treaties imposed on China by imperialist powers. As to some issues left over from history, including the issue of Macao, it held that they should be settled peacefully through negotiation when conditions are ripe. Pending the final settlement, the status quo should be maintained.

On February 8, 1979, China and Portugal formally established diplomatic relations at the ambassadorial level and reached an understanding on the issue of Macao. Portugal explicitly stated that it recognized Macao as a part of China's territory which was under the administration of the Portuguese government and that it was prepared to return Macao to China through negotiation to be held at an appropriate time.

From June 1986 to March 23, 1987, four rounds of talks were held between China and Portugal on settling the issue of Macao. On April 13, 1987, the Joint Declaration of the Government of the People's Republic of China and the Government of the Republic of Portugal on the Question of Macao was signed in Beijing. It is provided for in the Joint Declaration that the Macao area is a part of China's territory and that the Government of the People's Republic of China will resume the exercise of sovereignty over Macao on December 20, 1999. Following the resumption of exercise of sovereignty over Macao by the People's Republic of China, the Macao Special Administrative Region will be established, and the policy of "one country, two systems", "the people of Macao administering Macao" and a high degree of autonomy will be applied to it. This policy will remain unchanged for 50 years. This brought about a satisfactory settlement to the issue of Macao left over from history.

To give legal force to the policy of "one country, two systems" so as to ensure its smooth implementation in the Macao Special Administrative Region, China's National People's Congress decided to enact the Basic Law of the Macao Special Administrative Region. On March 31, 1993, the 8th National People's Congress reviewed and passed the Macao Basic Law at its first session. On the same day, President Jiang Zemin of the People's Republic of China issued the No. 3 Decree, promulgating the Macao Basic Law(including three annexes and the flag and emblem of the Macao Special Administrative Region).