Macao, a vibrant city known for its thriving casinos, is currently hosting a three-day visit from Chinese President Xi Jinping, commemorating the 25th anniversary of its return to Chinese governance.
Upon arrival, Xi and his wife, Peng Liyuan, were greeted with an elaborate ceremony that included traditional lion and dragon dances. In statements to the press, Xi praised Macao, a former Portuguese territory with a population of approximately 687,000, referring to it as “the pearl in the motherland’s palm.”
He expressed confidence in Macao’s future, stating, “I believe that as long as we fully leverage the institutional advantages of ‘one country, two systems,’ dare to strive hard, and have the courage to innovate, Macao will certainly create an even better tomorrow.”
Like Hong Kong, Macao is governed under the “one country, two systems” framework, which enables it to maintain a distinct legal and economic system that resembles Western models. Notably, it is the sole city in China where gambling is legally permitted.
Since its transfer from Portugal to China in 1999, Macao has evolved dramatically, changing from a casino monopoly to the world’s foremost gaming destination, attracting hordes of tourists, primarily from the mainland.
Over the years, Macao has also witnessed a decline in violent crime associated with organized syndicates, leading many long-time residents to feel that their lives have improved under Chinese administration. They often point to enhanced social welfare and annual cash distributions supported by substantial gaming revenue.
However, following significant anti-government protests in Hong Kong in 2019, authorities have imposed stricter controls in Macao, even though the political climate there remains distinctly different from its neighbor.
In recent developments, a vigil intended to remember the tragic 1989 military crackdown on the Tiananmen Square protests was prohibited. Furthermore, pro-democracy activists were excluded from participating in the legislative elections of 2021. Last year, Macao updated its national security law, effectively stifling vocal political opposition.
China’s leadership is now focused on diversifying Macao’s economy, which heavily relies on gaming and tourism. The new leader of Macao, Sam Hou Fai, elected by approximately 400 pro-Beijing figures in October, has emphasized that economic diversification is a priority. He has pledged to enhance initiatives aimed at boosting tourism and developing sectors such as traditional medicine, finance, technology, exhibitions, and commerce.
Nevertheless, analysts suggest that the city continues to depend significantly on gambling for funding essential social services and achieving other objectives set by Beijing.
During Xi’s visit, security measures have been intensified, including a prohibition on drone flights from December 14 to 22.
On Friday, Xi is slated to participate in the inauguration of the new government and is anticipated to outline his expectations for Macao’s development moving forward.
Additionally, the Chinese government has facilitated Macao’s growth by establishing a special collaborative zone on Hengqin Island, adjacent to Zhuhai, which will be jointly administered by Macao and mainland Chinese authorities.