Due to their status as colonies of foreign states during the establishment of the People's Republic of China in 1949, the phrase "mainland China" excludes Hong Kong and Macau. Since the return of Hong Kong and Macau to Chinese sovereignty in 1997 and 1999, respectively, the two territories have retained their legal, political, and economic systems. The territories also have their distinct identities. Therefore, "mainland China" generally continues to exclude these territories, because of the "One country, two systems" policy adopted by the PRC central government towards the regions. The term is also used in economic indicators, such as the IMD Competitiveness Report. International news media often use "China" to refer only to mainland China or the People's Republic of China.