China's Xi swore in new leader of Macau's casino hub and asks city to diversify its economy

MACAU — Chinese President Xi Jinping urged casino hub Macau to diversify its economy by investing in the former Portuguese colony's new government on Friday in an event marking the 25th anniversary of its return to China.

New general manager Sam Hou Fai Macau's first mainland-born leader has pledged to address the territory's lopsided and uncoordinated economic development.

Since its handover in 1999, the city of 687,000 inhabitants has gone from a gaming enclave run by a monopoly in the world's largest gaming center, attracting hordes of tourists from mainland China. The casino boom has improved living standards, but authorities fear the semi-autonomous city's economy is in trouble. unhealthy addiction on the industry.

Some young people say the tourism-dominated economy has limited their career options and the city's diverse development. Critics say years of easy money from tourists have discouraged local businesses from innovating and improving, with many locals relying on personal connections to solve their problems rather than civic participation.

At a gala dinner on Thursday, Xi praised Macau's progress in economic diversification over the past five years and its strengthening international influence. He called on the city to expand its international role while attracting global talents to build a better Macau.

On Friday, he said the city should improve its industrial development planning, strengthen political support and boost investment to nurture new, internationally competitive industries, in comments that observers called firmer and more specific than previously.

The government of the special administrative regions and all sectors of society should pay more attention to young people and create a better environment and conditions for their growth, development of their talents and realization of their aspirations, he said. he declared.

Sam promised to accelerate projects to boost tourism and other sectors such as Chinese medicine, finance, technology, exhibitions and trade.

Although political activism has never seriously challenged Beijing in Macau, authorities have tightened their control in recent years, particularly after Hong Kong was rocked by months of huge anti-government protests in 2019.

Vocal political dissent has been largely silenced. A vigil commemorating China's military crackdown on Pro-democracy protests in Tiananmen Square in 1989 was banned, and pro-democracy figures were not allowed to participate in legislative elections. Last year, the city toughened its national security law.

Xi said national sovereignty, security and development interests came first, while emphasizing the need to safeguard the city's autonomy. He said security is a prerequisite for development and residents should cherish their hard-earned stability and peace.

Like neighboring Hong Kong, Macau is governed separately from the rest of China under a system that allows it to retain elements of Western-style economic and social systems. It is the only Chinese city where casino gambling is legal.

As Beijing's political agenda now dominates Macau's development, the casino hub is deepening its economic ties and social integration with neighboring Guangdong province.

China has designated a special zone on Hengqin Island in neighboring Zhuhai, jointly managed by Guangdong and Macau, to help promote new industries. This area is expected to have around 120,000 Macau residents by 2035.

Xi said Macau must proactively participate in the Greater Bay Initiative, which Beijing aims to link Macau, Hong Kong and nine other Guangdong cities into an economic powerhouse.

Xi concluded his three-day visit to Macau on Friday. During his stay, he visited a university and the special zone of Hengqin Island, and attended a lavish cultural performance. He also met with, among others, the former city leaders of Macau and the chief executive of Hong Kong.

After accompanying Xi to the airport, Sam told reporters he was committed to meeting challenges head-on and being bold in action, saying his government would be clean, practical and close to his people.

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Leung reported from Hong Kong.