Xi demands Macau to diversify and join China's development plans

On December 20, 2024, in Macau, Chinese President Xi Jinping swore in the new government led by Chief Executive Sam Hou Fai, marking a significant moment as it was the 25th anniversary of Macau's handover from Portugal to China. During this event, Xi emphasized the urgent need for Macau to diversify its economy, which has been heavily reliant on the gambling industry since the territory's return to Chinese sovereignty in 1999. He pointed out that while the city has seen significant economic growth, it is crucial to not become overly dependent on one sector. Xi, acknowledging the rapid changes in both internal and external environments that Macau is facing, called upon the new leadership to exhibit the courage to implement moderate economic diversification. He praised the progress made over the past five years and encouraged further development of industries beyond gaming, such as tourism, finance, technology, and traditional Chinese medicine. He also reminded the government to pay more attention to the aspirations and growth opportunities for young people in the city. The new Chief Executive, Sam Hou Fai, who is the first leader born in mainland China, vowed to tackle the unbalanced economic development that has resulted from an overreliance on casinos. He outlined plans to accelerate the development of new sectors and industries aimed at creating a more sustainable and competitive economy. This leadership change occurred against a backdrop of heightened control and a recent tightening of national security laws, signaling the ongoing influence of Beijing on Macau's political landscape. Furthermore, Xi called for Macau to engage actively in China's Greater Bay Area initiative, which seeks to integrate the economies of Macau, Hong Kong, and nine other cities in Guangdong province into a powerful economic zone. Xi's visit to Macau included engagements with local leaders and a focus on fostering deeper connections with Guangdong province in the context of the plan for regional development, which includes a special economic zone on Hengqin Island intended to promote economic cooperation and diversity.