Chinese records of Macau can be traced back to the Qin Dynasty (221–206 BC), when the region now called Macau came under the jurisdiction of Panyu County, in the Nanhai prefecture of Guangdong province. The first recorded inhabitants of the area were people seeking refuge in Macau from invading Mongols during the Southern Song Dynasty. Under the Ming Dynasty (1368–1644 AD), fishermen migrated to Macau from Guangdong and Fujian provinces. But Macau did not develop as a major settlement until the Portuguese arrived in the 16th century. Portuguese traders used Macau as a staging port as early as 1516, making it the oldest European settlement in the Far East. In 1557, the Chinese agreed to a Portuguese settlement in Macau, and as more Portuguese settled in Macau to engage in trading, they made demands for self-administration; but this was not achieved until the 1840s.
In 1583, the Portuguese in Macau were permitted to form a Senate to handle various issues concerning their social and economic affairs under strict supervision of the Chinese authority, but there was no transfer of sovereignty. Macau prospered as a port but was the target of repeated failed attempts by the Dutch to conquer it in the 17th century. Following the Opium War (1839–42), Portugal occupied Taipa and Coloane in 1851 and 1864 respectively. In 1887, the Qing government was forced to sign the Sino-Portuguese Treaty of Amity and Commerce, under which China ceded to Portugal the right of "perpetual occupation and government of Macau", and Portugal pledged to seek China's approval before transferring Macau to another country; Macau officially became a Portuguese colony.
In 1928, after the Qing Dynasty had been overthrown following the Xinhai Revolution, the Kuomintang (KMT) government officially notified Portugal that it was abrogating the Treaty of Amity and Commerce; the two powers signed a new Sino-Portuguese Friendship and Trade Treaty in place of the abrogated treaty. Making only a few provisions concerning tariff principles and matters relating to business affairs, the new treaty did not alter the sovereignty of Macau and Portuguese government of Macau remained unchanged. When the Chinese communists came to power in 1949, they declared the Protocol of Lisbon to be invalid as an "unequal treaty" imposed by foreigners on China. However, Beijing was not ready to settle the treaty question, requesting a maintenance of "the status quo" until a more appropriate time. Beijing took a similar position on treaties relating to the Hong Kong territories.
Riots broke out in 1966 when the pro-communist Chinese elements and the Macau police clashed. The Portuguese Government reached an agreement with China to end the flow of refugees from China, and to prohibit all communist demonstrations. This move ended the conflict, and relations between the government and the leftist organizations have remained peaceful. The Portuguese tried once in 1966 after the riots in Macau, and again in 1974, the year of a military revolution in Portugal, to return Macau to Chinese sovereignty. China refused to reclaim Macau however, hoping to settle the question of Hong Kong first.
In 1976, Lisbon redefined Macau as a "Chinese territory under Portuguese administration" and granted it a large measure of administrative, financial, and economic autonomy. Three years later, Portugal and China agreed to regard Macau as "a Chinese territory under Portuguese administration". The Chinese and Portuguese governments commenced negotiations on the question of Macau in June of 1986. The two signed a Sino-Portuguese Joint Declaration the next year, making Macau a special administrative region (SAR) of China. The Chinese government assumed formal sovereignty over Macau on December 20, 1999.
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