A special administrative region is unique to The People’s Republic of China.  These regions are created by the central government in China to allow certain areas to operate with a high degree of autonomy. Hong Kong and Macau are two special administrative regions. Hong Kong had a long tradition of operating under a capitalistic economy, ruled by the British government.  After Hong Kong was returned to the Chinese government in 1997, leaders in China decided to allow Hong Kong to remain much like it was under British rule. Hong Kong has its own elected government leaders and a capitalistic economic system. This is in contrast to the communist/socialistic system of China. In addition, Hong Kong has its own currency, the Hong Kong dollar, as opposed to the Chinese renminbi, often referred to as yuan.  A special administrative region usually has its own executive, legislative and judicial system.  They also issue their own passports.  People born in the region have dual citizenship of both the special territory as well as The People’s Republic of China. One thing a Special Administrative Region does not have is its own army.  Rather, military defense is provided by China, which has troops stationed within the region's borders.