The situation in China is a mirror of the situation in Germany, where West Germany, an imperialist colony of the United States, has "absorbed" East Germany , a Stalinist state and society. The state apparatus in East Germany was dismantled, but the East German society lives on, in antagonism to the West German society, as evidenced by the names of "Ossies" and "Wessies" which the two populations call each other.
The key points of the "one country, two systems" policy are that within the PRC, the main body (mainland) will continue with its socialist system, while Hong Kong, Macao and Taiwan will maintain the capitalist system. The aim is to achieve peaceful reunification of the motherland and maintain stability and prosperity in Hong Kong, Macao and Taiwan.
Under the slogal, Taiwan is offered to maintain its own army:
"As a special administrative region, Taiwan will enjoy a high degree of autonomy, including administrative and legislative powers, an independent judiciary and the right of final adjudication on the island. It will run its own party, political, military, economic and financial affairs, may conclude commercial and cultural agreements with foreign countries and enjoy certain rights in foreign affairs. It may retain its armed forces and the mainland will not dispatch troops or administrative personnel to the island. On the other hand, representatives of the government of the special administrative region and those from different circles of Taiwan may be appointed to senior posts in the Central Government and participate in the running of national affairs."
In 1945, when the Chinese won the War of Resistance Against Japanese Aggression (1937-45), compatriots across the Taiwan Strait shared the joy of Taiwan's return to the motherland. In 1949, when the People's Republic of China was founded, the world saw a China enjoying complete sovereignty and towering in the East once again. Regretfully, Taiwan could not be reunified with the mainland because of the ongoing civil war and the armed intervention of foreign countries. The Chinese people had to continue their struggle for reunification across the Taiwan Strait."
"The mainland has consistently promoted cross-strait personnel exchanges and communication. According to incomplete statistics, cross-strait trade volume stood at US$82.02 billion from January to November 2005, a year-on-year increase of 15.8 percent. During the same period, the mainland approved 3,526 investment projects worth US$8.8 billion by Taiwan investors, a year-on-year increase of 3.8 percent."
"However, when compatriots on both sides hoped that cross-strait ties could make further progress based on the achievements of 2005, the leader of Taiwan authorities declared at the end of January 2006 that the "National Unification Council," the island's advisory body on unification with the mainland, shall "cease to function" and the "National Unification Guidelines" shall "cease to apply." The move exposed his stubborn adherence to pro-independence stance and demonstrated once again that he is a saboteur of cross-strait ties and peace and stability in the Asia-Pacific region."
China agreed to govern Hong Kong under the principle of "one country, two systems", where the city would enjoy "a high degree of autonomy, except in foreign and defence affairs" for 50 years.