The Chinese government resumes the exercise of sovereignty over Macao on December 20, 1999, to realize a long-time common aspiration of the Chinese people to take back the region. By then, the legislative system of Macao will have entered a new era and will undertake new missions.

The future Legislative Council of the Macao Special Administrative Region (hereinafter referred to as the "Legislative Council of the Macao SAR") will be a major political mechanism for realizing the principles of "one country, two systems; high level of autonomy; and Macao people governing Macao." It will be fundamentally different from the Legislative Assembly of Macao in existence before the region’s return to China. However, on the basis of the history and status quo of Macao and also the necessity for a peaceful transition of the region, there are inevitably some kinds of links between the two. Therefore, to understand the basic situation of the legislative system of Macao before its return to China will be conducive to even more deeply understanding the legislative system of Macao after its December 20 return to China.

According to the Organic Statute of Macao enacted by the Portuguese parliament in 1976, the Legislative Assembly and the Governor of Macao are the two governmental bodies of the region. The Legislative Assembly is composed of 23 deputies. Eight deputies are directly elected, another eight deputies are indirectly elected, and seven deputies are appointed by the Governor from among those residents with outstanding achievements and held in high esteem by the local community. The eight indirectly elected deputies are chosen by vote through a total of four electoral bodies representing local interests. Specifically, four of these deputies are indirectly elected through the electoral body representing the interests of the employers, two through the electoral body representing the interests of the labor, one through the electoral body representing the interests of specialized trades, and also one through the electoral body representing the interests of the charity, cultural, education and sports circles.

In legislation, Macao applies the system of legislation by two governmental bodies. Namely, both the Legislative Assembly and the Governor have the legislative authority. The Legislative Assembly exercises its legislative authority through legislation. Meanwhile, the Governor exercises his legislative authority by signing laws and issuing decrees and authorizing their publication. The laws enacted by the Legislative Assembly will become effective only after they are signed by the Governor. For a decree issued by the Governor, the Legislative Assembly, in its first five sessions following the signing of the decree, can place the decree under a procedure for retrogressive recognition at the request of at least six deputies. If a decree is rejected in such a procedure, it will become invalid as of the date when the Macao Official Gazette publishes the resolution of the Legislative Assembly on its rejection. However, if the Legislative Assembly rejects a decree that has been issued by the Governor within his exclusive authority to implement a Law of Bases enacted by a Portuguese organ of sovereignty (which refers to the Portuguese president, the Portuguese parliament, government or a court by the Constitution of Portugal) or that belongs to a set of legal instruments for approving the framework and operation of an executive organ (which generally refers to a government authority), or if the Legislative Assembly refuses to retrogressively recognize a decree on the ground that it contravenes provisions of the Constitution of Portugal, provisions of the Organic Statute of Macao or legislation issued by a Portuguese organ of sovereignty that may not be violated locally, any resolution on its rejection must be submitted to the Constitutional Court of Portugal for a judgment.

In the division of the law-making power, the legislative authority has been defined as the following: (1) the exclusive authority of the Governor; (2) the exclusive authority of the Legislative Assembly; (3) coincidental legislative authority jointly enjoyed by the Governor and the Legislative Assembly; and (4) authority belonging to the Legislative Assembly that can be exercised by the Governor with authorization through legislative permission. The general principle of dividing the legislative authority is that any division of the law-making power can not concern the jurisdiction of Portuguese organs of sovereignty and that neither side should intervene in the exercise of the exclusive legislative authority by the other.

Besides the law-making power, the Legislative Assembly also enjoys some other powers, such as the relatively important power to supervise the Governor and administrative authorities, and even the power to propose motions to impeach administrative policies of the Governor. However, such impeachment will not lead to the dismissal of the Government. On the contrary, the Governor has the authority to propose that the Portuguese president dissolve the Legislative Assembly on the ground of public interests.

Established in 1976, the Legislative Assembly of Macao will have had a history of more than 20 years by the day of Macao’s return to China. Although the Basic Law provides that certain desirable aspects of the existing legislative system of Macao will remain, the legislative system of the Macao SAR will be a brand-new one.

The Basic Law provides that the Legislative Council of the Macao SAR will be the legislative body of the region, which will enact, amend suspend and repeal laws in accordance with the Basic Law and legal procedures. This provision of the Basic Law means the basic definition of the Legislative Council of the Macao SAR. Although it seems usual, this provision is of profound significance in view of the facts that the legislative authority of Macao is jointly exercised by the Governor and the Legislative Assembly before Macao’s return to China, with the former mainly responsible for exercising this authority, and that the legislative authority will be solely exercised by the Governor after the Legislative Assembly is dissolved. This provision of the Basic Law profoundly shows that after Macao’s return to China, the Legislative Council of the Macao SAR will independently enjoy the legislative authority – the full law-making power. So, such a status of the Legislative Council of the Macao SAR and the wide-ranging powers it enjoys, including the law-making power, will enable it to play a very important role in the political system of the Macao SAR.

In full consideration of the history and realities of Macao, the Basic Law, in accordance with the fundamental principle of "one country, two systems," defines the pattern of the political system of the Macao SAR as one with the independence of judicature, with administration playing the leading role, and with the administrative and legislative powers restraining each other and cooperating with each other. As a distinct form of local government, this pattern of political system is different from either the typical Western political system with the separation of the legislative, executive and judicial powers or the system of people’s congress practiced in the mainland of China. It is even more greatly different from the colonialist administrative pattern. In particular, the system with the administrative and legislative powers restraining each other and cooperating with each other very much conforms to the realities in Macao. Even more significantly, it is an important mechanism for ensuring the sound practice of high level autonomy.

The Basic Law provides for rigorous arrangements for ensuring the mutual cooperation between the administrative and legislative authorities of the Macao SAR. Firstly, the Basic Law, after referring to certain approaches of the former Consultative Council of the Governor of Macao, provides for the establishment of an organ for assisting the Chief Executive in policy-making – the Executive Council of the Macao SAR. The Basic Law stipulates that "the Chief Executive shall consult the Executive Council before making important policy decisions, introducing bills to the Legislative Council, formulating administrative regulations, or dissolving the Legislative Council." It also stipulates that the Executive Council must include deputies of the Legislative Council, enabling the Executive Council to become, to some extent, a bridge between the administrative and legislative authorities, which will be beneficial for the two sides to exchange views and reach consensus. Secondly, in order to ensure the stability of the political system and the give full play to the administrative power, the Basic Law stipulates that the making of certain laws must be proposed by the government. Although the Legislative Council may amend bills in the process of legislation, the Chief Executive and the government must be responsible for implementing the laws that have been adopted by the Legislative Council and which are already in force. As a matter of fact, such a system also serves as an important mechanism for mutual cooperation between the administrative and legislative authorities. And thirdly, Macao previously applies a system that part of the deputies to the Legislative Assembly are appointed by the Governor. In consideration of mutual cooperation between the administrative and legislative authorities, the Basic Law stipulates that such a system will remain in the region. Although the deputies appointed by the Chief Executive should not be simply viewed as his representatives, they can actually play a relatively unique role in reflecting the opinions or plans of the government. Meanwhile, in the capacity of deputies, they better understand the functioning of the Legislative Council and the views of other deputies. Therefore, the maintenance of such a system will also be beneficial to favorable mutual cooperation between the administrative and legislative authorities in the region.

Of course, under certain circumstances, the deputies appointed can also play a role in the mutual restraint between the administrative and legislative authorities.

On the mutual restraint between the administrative and legislative authorities, the Basic Law has a full range of provisions.

Firstly, on mutual restraint in dividing the power of legislative motions:

Article 75 of the Basic Law provides: "Deputies of the Legislative Council of the Macao SAR may introduce bills in accordance with the provisions of this Law and legal procedures. Bills that do not relate to public revenue and expenditure, political structure or the functioning of the government may be introduced individually or jointly by deputies of the Legislative Council. Written consent from the Chief Executive shall be required before bills relating to government policies are introduced."

Secondly, on mutual restraint concerning the accountability of administrative authorities to the Legislative Council:

Article 65 of the Basic Law provides: "The government of the Macao SAR must abide by law and be accountable to the Legislative Council of the region: it shall implement laws passed by the Legislative Council and already in force; it shall present regular policy addresses to the Legislative Assembly; and it shall answer questions raised by deputies of the Legislative Council."

Thirdly, on mutual restraint concerning the power of the Legislative Council to make the Chief Executive resign under statutory requirements and legal procedures:

Article 54 of the Basic Law provides that the Chief Executive of the Macao SAR must resign under either of the following circumstances: "When, after the Legislative Council is dissolved because the Chief Executive twice refuses to sign a bill passed by it, the new Legislative Council again passes by a two-thirds majority of all the deputies the original bill in dispute, but the Chief Executive still refuses to sign it within 30 days;" and "When, after the Legislative Council is dissolved because it refuses to pass a financial budget or any other bill concerning the overall interests of the Macao SAR, the newly elected Legislative Council still refuses to pass the original bill in dispute."

Fourthly, on mutual restraint concerning the power of the Chief Executive to dissolve the Legislative Council under statutory requirements and legal procedures:

Article 52 of the Basic Law provides: "The Chief Executive of the Macao SAR may dissolve the Legislative Council under either of the following circumstances: (1) The Chief Executive refuses to sign a bill passed the second time by the Legislative Council; and (2) The legislative Council refuses to pass a financial budget introduced by the government or any other bills which the Chief Executive considers concern the overall interests of the Macao SAR, and after consultations, consensus still cannot be reached. Before dissolving the Legislative Council, the Chief Executive must consult the Executive Council and shall explain the reason for the dissolution to the public. The Chief Executive may dissolve the Legislative Council only once in each term of office."

And fifthly, on mutual restraint concerning the authority of the Legislative Council to pass a motion to impeach the Chief Executive:

Clause 7 in Article 71 of the Basic Law provides: "If a motion initiated jointly by one-third of all the deputies of the Legislative Council charges the Chief Executive with serious breach of law or dereliction of duty and if the Chief Executive refuses to resign, the Legislative Council may, by a resolution, give a mandate to the President of the Court of Final Appeal to form an independent investigation committee to carry out investigation. If the committee considers the evidence sufficient to substantiate the charge, the Legislative Council may pass a motion of impeachment by a two-thirds majority of all its deputies and report it to the Central People’s Government for a decision."

Mutual restraint between the administrative and legislative authorities is by no means mutual confrontation between the two sides, let alone hindrance of each other in their work. Rather, it is designed to enable them to strictly abide by the Basic Law, lawfully exercise their power, and prevent and redress any mistakes in their work.

The establishment of the Macao SAR will signify a fundamental change in the political status of the Macao compatriots while the full implementation of the Basic Law will mean the start of a new era for political democracy of Macao. The Legislative Council of the Macao SAR, whose deputies are all permanent residents of Macao, will embody the political status of the Macao compatriots as masters of their own region through the exercise of the powers entrusted by the Basic Law, and reflect and maintain the appropriate demands and legal rights and interests of all Macao residents, particular the basic rights of Macao residents defined by the Basic Law.

Meanwhile, the Basic Law also defines a correct orientation for the development of democracy in Macao by the principle of steady progress. Annex II of the Basic Law provides that the numbers of deputies directly elected to the Legislative Council of the Macao SAR for the second and third terms will increase to 10 and 12 respectively from the number of eight for the first term, and that the number of deputies indirectly elected will increase to 10 for both the second and third terms from the number of eight for the first term. Annex II of the Basic Law also stipulates: "If there is a need to change the method for forming the Legislative Council of the Macao SAR in and after 2009, such amendments must be made with the endorsement of a two-thirds majority of all the deputies of the Legislative Council and the consent of the Chief Executive, and they shall be reported to the NPC Standing Committee for the record." This stipulation of the Basic Law has provided for legally feasible and relatively loose conditions for forming the Legislative Council fully through elections in future.