In the era of globalization, the promotion of the liberalization of international trade has been a defining feature. Numerous of free trade agreements were concluded in the world. In order to benefit from the expected effects of international trade liberalization through the adoption of regional free trade agreements (FTAs), many countries, and particularly so-called “developing countries” have established free trade zones (FTZs). Therefore, a dual- track mechanism that combines the expansion of external trade relations with the internal or domestic constructions of free trade zones became an important strategy for the People’s Republic of China (PRC) to further strengthen the prosperity deriving from its international trade relations. In this regard, it is noteworthy that Shanghai, Tianjin, Fujian and Guangdong have respectively established pilot projects of free trade zones. The proposed Guangdong FTZ, involving the Nansha Area, the Qianhai and Shekou Area and the Hengqin Area, is most particular because it contains not only three different areas for different functions it will also include the association of the Guandong province with two special administrative regions of the PRC, namely the Hong Kong SAR and the Macau SAR . In this context, attention must be paid to the potential legal implications of the proposed establishment of FTZ, especially for the free trade status of the Hong Kong SAR and Macau SAR that are open economies and free ports according to their respective Basic Laws. Particularly for the Macau SAR, there exists several important challenges, which are related to the dominance of economy by the gaming industry. This dominance has been addressed by plans to diversify its economy but which has so far has made staggering progress. Perhaps the proposed Guangdong FTZ marks a great opportunity for the Macau SAR to enhance the diversification and innovation of its economy. This thesis aims to outline the main characteristics of the proposed Guangdong FTZ and critically inquire into the potential opportunities and related challenges. The analysis combines an institutional, legal and economic view of the Macau SAR in order to assess the opportunities for it to achieve its greater economic diversification based on the Guangdong FTZ.