What's happened
China's President Xi Jinping has urged Macau to diversify its economy away from gambling during a visit marking the 25th anniversary of its return to Chinese rule. New Chief Executive Sam Hou Fai promises immediate action to promote economic diversification amid changing internal and external conditions.
Go deeper
Economic Diversification
- Xi Jinping's call for diversification aims to reduce Macau's reliance on gambling.
- New industries such as IT and modern health are being considered.
Political Context
- Macau's governance has been more compliant to Beijing compared to Hong Kong.
- The recent appointment of Sam Hou Fai, a mainland-born leader, signals a shift towards tighter integration with mainland policies.
Future Implications
- The development of Hengqin Island offers potential for expansion and new economic opportunities.
- Macau's ability to adapt will be crucial for its long-term stability and growth, especially as gaming revenues decline.
What the papers say
According to The Guardian, Xi Jinping emphasized the need for Macau to promote moderate economic diversification, stating, "Efforts should be made to promote moderate economic diversification... focus on cultivating new industries with international competitiveness." The New York Times highlights that Xi's vision includes aligning Macau's economy with national strategies, suggesting a shift from its traditional gambling focus. Meanwhile, the South China Morning Post notes that Macau's Chief Executive Sam Hou Fai has pledged to diversify the economy, although challenges remain due to limited space for new industries. Holmes Chan from The Japan Times points out that Macau is viewed as a model for Beijing's 'one country, two systems' approach, contrasting its situation with Hong Kong's recent unrest.
How we got here
Macau, a former Portuguese colony, became a special administrative region of China in 1999, maintaining a degree of autonomy. Over the years, it has developed into the world's largest gambling hub, heavily reliant on tourism and gaming revenues, which account for about 80% of its tax income.
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Xi Jinping is a Chinese politician serving as the general secretary of the Communist Party of China, president of the People's Republic of China, and chairman of the Central Military Commission.
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Hong Kong, officially the Hong Kong Special Administrative Region of the People's Republic of China, is a metropolitan area and special administrative region of the People's Republic of China on the eastern Pearl River Delta of the South China Sea.