Portugal claimed both Small Hengqin and Great Hengqin, along with the larger former island of
Wanzai () — now a peninsula — to their north, as part of the Província de Macau, because "Portuguese schools are established there". In 1896, Portuguese determined to occupy the two islands of Hengqin, but did not succeed in doing so. Portugal briefly occupied them before
World War II. Since the land reclamation and development, there has been a growing opinion in Macau that the island should be leased to Macau, which has very limited land and little room for further development. By 1 September 2005, plans were revealed that the government of Guangdong will allow tax exemptions and adopt flexible immigration control in Hengqin to promote investment from
Hong Kong and Macau. On 27 June 2009, the
government of Macau officially announced that the
University of Macau would build its new campus on 1 km2 of the island, in a stretch directly facing the Cotai area, south of the current border post. This would be the first of other possible projects. Construction of the campus would take three years and would include an underwater tunnel. The
Standing Committee of the National People's Congress officially adopted a decision authorising Macau to exercise jurisdiction over the new campus on its opening. Macau law would apply in the university campus and it would not be necessary to pass a formal border post. The Macau Special Administrative Region will pay an amount of rent – which has not yet been set – for the use of the land. In early 2013, the Macau Legislative Assembly passed Law 3/2013 providing for the application of Macau Law in the campus effective on opening day. In 2020, the Macau Legislative Assembly passed Law 1/2020 providing for the application of Macau Law in a part of Hengqin Port. Macau's jurisdiction over this area became effective on 18 March. == Tourism ==