A little bit of historical information on Chinese leaderhsip:

In 1980 Mao was dead. Sorry AtPG. :P Deng Xiaoping is in charge and he loves to privatize everything he has his hands on (Which is practically everything)

A little bit information on China-British relations over Hong Kong:

When India invaded Portuguese India in 1961, SU Chairman, Kruschev declared that Mao should follow Nehru's example and get rid of China's last traces of colonialism (Hong Kong and Macau). Obviously, Mao would have followed Kruschev's advice and overran Macau and Hong Kong, but the British Government was swift in announcing in attempt of invasion of Hong Kong would be followed by a nuclear strike on China (Which since Britain had Nuclear Submarines, wasn't bluff at all). Having lost much of its prestige in the Suez Crisis, Britain wasn't going to lose face again was willing to nuke China to smithereens to protect its interests. Of course, Mao could easily overrun Macau, but then he'd lose face for only taking the territory of those who couldn't protect themselves, without attacking the other British enclave a few miles apart. Furthermore, not only was Portugal a founding member of NATO which could lead to trouble for China, but Portugal was also one of the closest allies of Britain, and British action in an eventual taking of Macau, even if Mao was willing to be known as a bully in the International Scene, was sketchy, and could lead to a British attack anyway.
Besides that, Portugal was the country where Maoism had its biggest influence, (Which was insignificantly small anyway) and attacking Portugal might lead to a disillusionment of many Maoists in Portugal eventually ending a possible spread of the ideology throughout Europe.

So, yeah. China was afraid of Britain in this issue.

If I can take Portugal, I'd be willing! I wouldn't have much of an International weight initially, but hey, at least I could challenge China in Portugal's last colony and with NATO help, defeat China and make China "The jewel of the Republic". Then with Portuguese leadership, China would be ushured into a new era of progress, and all Chinese would see the enlightment of Portugal, and declare themselves convict Portuguesemen, ready to expand the Portuguese empire to the rest of the world. In the end of the game, I shall have unified the world under my leadership.