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To solve the problems of Hong Kong, Macao and Taiwan, Deng Xiaoping, considering the historical and current conditions, advocated the concept of "one country, two systems" for the peaceful reunification of the nation. The concept means that within the People's Republic of China, the mainland with its more than one billion people will maintain the socialist system while Hong Kong, Macao and Taiwan will continue under the capitalist system. When meeting with British Prime Minister Margaret Thatcher in September 1982, Deng elaborated China's basic position on the issues of Hong Kong, safeguarding the sovereignty and dignity of his motherland. 

In 1983 he suggested the six principles aiming at Taiwan issues, strongly showing his willingness for peaceful reunification. However, he reiterated that China will never rule out the possibility of using non-peaceful means if any force tries to split Taiwan from the motherland.

After the Twelfth National Congress of the CPC, China solved the problems about the returns of Hong Kong and Macao. The governments of the People's Republic of China and the United Kingdom formally signed a joint declaration concerning the Hong Kong issues on December 19, 1984, in Beijing after two years' negotiations. 

The Joint Declaration states that the government of the People's Republic of China will resume the exercise of sovereignty over Hong Kong on July 1, 1997. This sets a good example for resolving the Macao issues. The governments of the People's Republic of China and the Portuguese Republic signed another joint declaration on April 13, 1987, in Beijing. The Joint Declaration states that the government of the People's Republic of China will resume the exercise of sovereignty over Macao on December 20, 1999.

The government of the People's Republic of China resumed the exercise of sovereignty over Hong Kong on July 1, 1997. Hong Kong's return to the motherland symbolized the great success of the concept of "one country, two systems" and an important step forward for the Chinese people in the process of the nation's peaceful reunification.

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