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Xi Jinping Urges Economic Diversification as Macau Welcomes New Leader
The inauguration of Sam Hou Fai as Macau’s new Chief Executive marks a pivotal moment in the city’s governance, with a clear mandate from Chinese President Xi Jinping to steer Macau toward economic diversification. This direction emphasizes reducing the region’s dependence on the gambling industry, which dominates its economy by contributing approximately 80% of tax revenue.
Key Highlights:
- Diversification of Economy:
- Xi stressed the need for “moderate economic diversification” to cultivate new internationally competitive industries.
- He pointed to the development of Hengqin Island as a critical area for leisure, business, and academic collaboration.
- Integration with National Strategy:
- Macau’s alignment with China’s Greater Bay Area plan is a priority. This strategy seeks to economically integrate Macau with nearby cities like Hong Kong and Guangzhou.
- Xi called for Macau to enhance its connections with Portuguese-speaking nations and actively participate in the Belt and Road Initiative.
- Governance and Autonomy:
- Xi reiterated the importance of Macau leveraging the “one country, two systems” framework, advocating respect for the differences between Macau and mainland China while maintaining a high degree of autonomy.
- New Leadership:
- Sam Hou Fai, a former judge with a robust legal background and deep ties to mainland China, pledged to enact swift measures to diversify Macau’s economy.
- Call for Global Talent:
- Xi emphasized the need for Macau to “recruit talent from all over the world” to achieve greater international recognition and competitiveness.
Strategic Implications:
- Economic Shift: Macau faces the challenge of reshaping its economy without destabilizing its primary revenue source, gambling. The transition will require investments in technology, education, and tourism beyond casinos.
- Regional Collaboration: Enhanced ties with Portuguese-speaking countries could open trade and cultural exchange opportunities, given Macau’s historical and linguistic connections.
- Political Stability: Beijing’s consistent praise for Macau underscores its model of loyalty and stability compared to the unrest seen in neighboring Hong Kong.
As Macau marks 25 years under Chinese rule, the new administration has an opportunity to redefine its economic and global identity while navigating the complexities of maintaining autonomy within the “one country, two systems” structure.