Abstract of Thesis The title of this thesis is Macaw case study- the exploration into relation of central and local government under ¡§one country, two system.¡¨ Deng Shao Ping, the last one of the Communist China¡¦s leaders group and general designer for Communist China¡¦s ¡§reform, door opening and modernization policy¡¨ first introduced the concept of ¡§one country, two system¡¨ and applied this theory on the its unification effort of Taiwan. In July, 1997, under Communist China¡¦s guideline-¡§one country, two system¡¨ British Hong Kong administration, was peacefully transformed to become Hong Kong autonomy of Communism China. On December 20, 1999 , Portuguese Macaw administration was also transformed to Macaw autonomy of Communism China. In order to find out the development history of ¡§one country, two system¡¨, this thesis will first review the publications that discuss central and local government relationship, then explore the development of local political system utilizing operation principle of Mainland China¡¦s politics. Based on communism¡¦ tradition theory- Marx-Leninism; Mao and Deng principal, this thesis will analyze how Deng develop, solidify and finalize his claim, ¡§ Establishment of a socialism country with Chinese character¡¨ starting from the concept of ¡§ one country, two system¡¨. Finally, Macaw case study will be carried out to explore all the possible issued faced for before and after take over of Macaw under the theory frame work of ¡§one country, two system¡¨ and from the central/local relationship of Mainland China. Hopefully, the conclusion of the study can help to understand (1) the feasibility of political system and development under Communist China¡¦s ¡§one country, two system¡¨ and (2) possible future development and trend, direction and outlook.