This chapter contextualizes Macao literature by examining debates surrounding its definition, nature, and boundaries. It reviews scholarly discussions revealing tensions between inclusive and restrictive definitions, and between Chinese-centric and multilingual conceptions. Drawing on Bourdieu's field concept and polysystem theory, the chapter maps the historical development of Macao's literary field through four periods from the 1930s to present, showing how the 1999 handover fundamentally restructured the field through new political imperatives and cultural policies. It demonstrates how translation became central to cultural production, identity performance, and cultural diplomacy in post-handover Macao, providing essential background for understanding contemporary literary translation practice.