China's Xi urges bigger international role for gambling hub Macau

By Nicoco Chan and Tyrone Siu

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

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

Xi called for Macau to develop new industries and connect with China's national development strategies, including the Greater Bay Area, an ambitious economic plan to link several cities in southern China, including the neighbouring financial hubs of Hong Kong and Guangzhou.

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

"Efforts should be made to promote moderate economic diversification... focus on cultivating new industries with international competitiveness."

Since Xi took office in 2013, he has called for the "appropriate diversification and sustainable development" of Macau's economy. The moves, and a sweeping anti-corruption drive, have throttled gambling revenues from the high-roller VIP sector.

Xi arrived in Macau on Wednesday for a three-day visit to mark a quarter century of Beijing's rule. He has been visiting 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 when anti-government protests were rocking the former British colony of Hong Kong.

On Friday, Xi called for Macau to be more open and inclusive to "recruit talent from all over the world" and "show greater achievements on the international stage."

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Beijing has consistently praised Macau for its loyalty and stability, with more than half of its 700,000 population immigrating from China in recent decades.

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

Macau returned to Chinese rule on Dec. 20, 1999, governed under the same "one country, two systems" formula as nearby Hong Kong.

Xi urged Macau not to be complacent and to "be brave to change and innovate" and make better use of "the one country, two systems" framework which guarantees a high degree of autonomy.

He said that respect should be given for the differences between the two systems and fully protect the special administrative regions high degree of autonomy.

Sam, 62, has been head of Macau's highest court since 1999. He was the only candidate given permission by a panel of 400 pro-China loyalists to run in Macau's election.

He said he would demand "immediate action" on diversification away from the casino industry.

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

To enhance international competitiveness, Xi said Macau needs to further promote cooperation with Portuguese-speaking countries and "actively participate" in the China's Belt and Road Initiative.

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