Although the Portuguese were initially prohibited from fortifying Macau or stockpiling weapons, the Fortaleza do Monte was constructed in response to frequent Dutch naval incursions. The Dutch attempted to take the city in the 1622 Battle of Macau, but were repelled successfully by the Portuguese.[36] Macau entered a period of decline in the 1640s following a series of catastrophic events for the burgeoning colony: Portuguese access to trade routes was irreparably severed when Japan halted trade in 1639,[37] and after the Portuguese Restoration War of 1640,[38] Portuguese Malacca fell to the Dutch in 1641.[39][40] Maritime trade with China was banned in 1644 following the Qing conquest under the Haijin policies. It was limited only to Macau on a lesser scale while the new dynasty focused on eliminating surviving Ming loyalists.[41] While the Kangxi Emperor lifted the prohibition in 1684, China again restricted trade decades later under the Canton System in 1757.[42] Foreign ships were required to stop first at Macau before further proceeding to Canton.[43] Qing authorities exercised a much greater role in governing the territory during this period; Chinese residents were subject to Qing courts and new construction had to be approved by the resident mandarin beginning in the 1740s.[44] As the opium trade became more lucrative during the 18th century, Macau again became an important stopping point en route to China.[45] Macau in the early 19th century Following the First Opium War and the establishment of Hong Kong by the British, Macau lost its role as a major port.[46] Firecracker and incense production, as well as tea and tobacco processing, were vital industries in the colony during this time.[47][48] Portugal was able to capitalise on China's postwar weakness and assert its sovereignty; the Governor of Macau began refusing to pay China annual land rent for the colony in the 1840s,[49] and annexed Taipa and Coloane, in 1851 and 1864, respectively.[50] Portugal also occupied nearby Lapa and Montanha.[49] But these were returned to China by 1887, when perpetual occupation rights over Macau were formalised in the Sino-Portuguese Treaty of Peking. This agreement also prohibited Portugal from ceding Macau without Chinese approval.[51] Despite occasional conflict between Cantonese authorities and the colonial government, Macau's status remained unchanged through the republican revolutions of both Portugal in 1910 and China in 1911.[52] The Kuomintang further affirmed Portuguese jurisdiction in Macau when the Treaty of Peking was renegotiated in 1928.[52] During the Second World War, the Empire of Japan did not occupy the colony and generally respected Portuguese neutrality in Macau. However, after Japanese troops captured a British cargo ship in Macau waters in 1943, Japan installed a group of government "advisors" as an alternative to military occupation. The territory largely avoided military action during the war except in 1945, when the United States ordered air raids on Macau after learning that the colonial government was preparing to sell aviation fuel to Japan. In 1950, the United States paid Portugal more than US$20 million in compensation for the damage during the war.[53] Refugees from mainland China swelled the population as they fled from the Chinese Civil War. Access to a large workforce enabled Macau's economy to grow as the colony expanded its clothing and textiles manufacturing industry, developed its tourism industry, and legalised casino gaming.[54] However, at the height of the Cultural Revolution, residents dissatisfied with the colonial administration rioted in the 1966 12-3 incident, in which 8 people were killed and more than 200 were injured. Portugal lost full control over the colony afterwards, and agreed to cooperate with the Chinese Communist Party in exchange for continued administration of Macau.[55] Following the 1974 Carnation Revolution, Portugal formally relinquished Macau as an overseas province and acknowledged it as a "Chinese territory under Portuguese administration".[56] After China first concluded arrangements on Hong Kong's future with the United Kingdom, it entered negotiations with Portugal over Macau in 1986. These concluded with the signing of the 1987 Joint Declaration on the Question of Macau, in which Portugal agreed the handover of the colony in 1999 and China guaranteed Macau's political and economic systems for 50 years after the handover.[57] In the waning years of colonial rule, Macau rapidly urbanised and constructed large-scale infrastructure projects, including the Macau International Airport and a new container port.[58] The handover of Macau was at midnight on 20 December 1999, after 442 years of Portuguese rule.[13] Following the handover, Macau liberalised its casino industry (which previously operated under a government-licensed monopoly) to allow foreign investors, starting a new period of economic development. The regional economy grew by a double-digit annual growth rate from 2002 to 2014, making Macau one of the richest economies in the world on a per capita basis.[59] Political debates have centred on the region's jurisdictional independence and the central government's adherence of "one country, two systems". While issues such as national security legislation have been controversial, Macanese residents generally have high levels of trust in the government.[60] Kwong and Wong[61] explain this by comparing Macau to Hong Kong: "The case of Macau shows that the very small size of a 'microstate' helps central authorities to exercise political control, stifle political pluralism, and monopolize opinions, all of which strengthen regime persistence." Government and politics[edit] Main articles: Government of Macau, Politics of Macau, and Elections in Macau The legislature meets in the Legislative Assembly Building in Sé. Macau is a special administrative region of China, with executive, legislative, and judicial powers devolved from the national government.[62] The Sino-Portuguese Joint Declaration provided for economic and administrative continuity through the handover, resulting in an executive-led governing system largely inherited from the territory's history as a Portuguese colony.[63] Under these terms and the "one country, two systems" principle, the Basic Law of Macao is the regional constitution.[64] Because negotiations for the Joint Declaration and Basic Law began after transitional arrangements for Hong Kong were made, Macau's structure of government is very similar to Hong Kong's.[65] The regional government is composed of three branches: Executive: The Chief Executive is responsible for enforcing regional law,[66] can force reconsideration of legislation,[67] and appoints Executive Council members, a portion of the legislature, and principal officials.[66] Acting with the Executive Council, the Chief Executive can propose new bills, issue subordinate legislation,[68] and has authority to dissolve the legislature.[69] Legislature: The unicameral Legislative Assembly enacts regional law, approves budgets, and has the power to impeach a sitting Chief Executive.[70] Judiciary: The Court of Final Appeal and lower courts, whose judges are appointed by the Chief Executive on the advice of a recommendation commission,[71] interpret laws and overturn those inconsistent with the Basic Law.[72] The Chief Executive i