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The National Flag of Macau SAR.

Light green with a lotus flower above a stylized bridge and water in white, beneath an arc of five gold, five-pointed stars: one large in center of arc and four smaller.

Enlarged map of Macau

China has promised that, under its "one country, two systems" formula, China's socialist economic system will not be practiced in Macau. Macau enjoys a high degree of autonomy in all matters except foreign and defense affairs. The economy is based largely on tourism (including gambling) and textile and fireworks manufacturing. Efforts to diversify have spawned other small industries - toys, artificial flowers, and electronics. The tourist sector has accounted for roughly 25% of GDP, and the clothing industry has provided about three-fourths of export earnings; the gambling industry probably represents over 40% of GDP. More than 8 million tourists visited Macao in 2000. Macao depends on China for most of its food, fresh water, and energy imports. Japan and Hong Kong are the main suppliers of raw materials and capital goods. Output dropped 5% in 1998 and 3% in 1999, with a small 2% gain in 2000. Macao reverted to Chinese administration on 20 December 1999. Gang violence, a dark spot in the economy, probably will be reduced in 2000-01 to the advantage of the tourism sector.

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