Chinese President Xi Jinping calls for bigger international role for Macau gaming hub

Chinese President Xi Jinping welcomes the inauguration of Macau's new leader Sam Hou-fai (not pictured), marking the 25th anniversary of Macau's handover from Portugal to China, in Macau on December 20, 2024. | Photo credit: REUTERS

Chinese President Xi Jinping urged Macau's new government to have the courage to diversify the economy of the world's biggest gaming hub as the former Portuguese enclave swore in its first Chinese-born and raised city leader continental.

Xi's comments were made Friday during the inauguration of the Macau government led by former judge Sam Hou Fai, who was born in southern China's Guangdong province and speaks fluent Portuguese.

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Xi called on Macau to develop new industries and connect with China's national development strategies, including the Greater Bay Area, an ambitious economic plan aimed at linking several cities in southern China, including the neighboring financial centers of Hong Kong and Guangzhou.

At present, the overall situation in Macao is stable, but the internal and external environment is undergoing profound changes, he said.

Efforts should be made to promote moderate economic diversification… focusing on cultivating new, internationally competitive industries.

Since Xi took office in 2013, he has called for appropriate diversification and sustainable development of Macau's economy. These measures, along with an extensive anti-corruption campaign, have limited gaming revenues in the VIP sector of the biggest players.

Mr Xi arrived in Macau on Wednesday for a three-day visit marking a quarter century of rule from Beijing. He visited different areas of the city, including its universities and special economic zones.

The trip to Macau is Xi's third as president. He last visited in 2019, as anti-government protests rocked the former British colony of Hong Kong.

On Friday, Xi called on Macau to be more open and inclusive to recruit talents from around the world and display greater achievements on the international stage.

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Beijing has repeatedly praised Macau for its loyalty and stability, with more than half of its 700,000 residents having immigrated from China in recent decades.

A special administrative region of China, Macau is the only place in the country where gambling is legal. Its economy relies heavily on the casino industry, which contributes approximately 80% of regional tax revenue.

Macau returned to Chinese rule on December 20, 1999, governed under the same “one country, two systems” formula as its neighbor Hong Kong.

Xi urged Macau not to be complacent and show courage to change, innovate and better utilize the “one country, two systems” framework that guarantees a high degree of autonomy.

He said it is necessary to respect the differences between the two systems and fully protect the high degree of autonomy of the special administrative regions.

Sam, 62, has presided over Macau's highest court since 1999. He was the only candidate allowed by a panel of 400 pro-China loyalists to run in Macau's elections.

He said he would demand immediate action on diversification out of the casino industry.

Xi outlined the development of adjacent Hengqin Island, home to several leisure and business initiatives as well as the University of Macau, as part of China's move to help diversify the economy from Macau.

To strengthen international competitiveness, Xi said Macau should further promote cooperation with Portuguese-speaking countries and actively participate in China's Belt and Road Initiative.