Xi Jinping Heading to Macau as New Leader Takes Office

Posted on: December 16, 2024, 12:38h. 

Last updated on: December 16, 2024, 01:57h.

Philip Conneller @casinoorgphilc Read More

Expertise: Gaming Business, Regulation, Tribal Gaming.

Chinese President Xi Jinping may be passing on Donald Trump’s inauguration ceremony, according to reports, but he will be heading to Macau on Wednesday to swear in the enclave’s new leader, Sam Hou-fai.

Sam is a Beijing loyalist and will be the first leader of Macau to be born on the Chinese mainland. The former judge’s pledge to diversify Macau’s economy, which he believes is too reliant on gaming, coincides with that of his distinguished visitor, Xi.

This will be Xi’s third visit to Macau since he came to power in 2013. The first, in 2014, was to mark the 15th anniversary of Macau’s secession from Portuguese rule. He visited again in 2019 to attend the inauguration of Sam’s predecessor, Ho Iat Seng, who announced earlier this year that he wouldn’t seek another term, citing ill health.

‘Foreign Influence’

Ten years ago, amid a backdrop of low-key pro-democracy protests, Xi stressed the importance of the “one country, two systems” policy and warned against “foreign influence” – a nod to the pro-Democracy movement that had recently gained traction in Hong Kong.

Xi’s presence was also intended to hammer home the need for Macau to diversify its casino-capitalist economy.

At the time, Xi’s “anticorruption drive,” launched a year earlier, was beginning to bite Macau’s casino sector and would ultimately lead to a 26-month downward economic spiral for the gaming hub.

Beijing had recently introduced measures to restrict the movement of money into Macau and tightened the screws on junket operators, which ultimately scared off mainland VIP gamblers, who up to that point, had provided the lion’s share of the sector’s revenues.

Wednesday’s visit will coincide with the 25th anniversary of secession, and Xi will witness a slightly different Macau – one whose casino industry is no longer dominated by junket operators and VIP high rollers, and where the mass market is king.

Kindred Spirits

Xi will also find a kindred spirit in Sam, who has said that the gambling industry’s dominance has stretched resources and narrowed career choices for young people in Macau. The incoming leader believes the enclave’s political and economic development faces “unavoidable” challenges that make it vital to “reform and innovate.”

Critics say the project has led to decreased freedoms in Hong Kong and has weakened its district identity from mainland China.