Xi visits casino hub Macao to mark 25 years of its return to Chinese rule

MACAO — Chinese President Xi Jinping on Wednesday began a three-day visit to Macao to mark the 25th anniversary of the casino city’s return to Chinese rule.

Xi and his wife, Peng Liyuan, were welcomed at the airport by a lavish ceremony with lion and dragon dances. Xi told reporters that Macao, a former Portuguese colony of 687,000 people, is “the pearl in the motherland’s palm.”

“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,” he said.

Like neighboring financial hub Hong Kong, Beijing has ruled Macao under the “one country, two systems” principle that allows the cities to retain their own Western-style legal and economic systems. Macao is the only city in China where casino gambling is legal.

Since the 1999 handover from Portugal to China, Macao has transformed from a monopoly-driven casino hub into the world’s biggest gambling center that's been flooded by tourists, mainly from mainland China.

Over the years, violent crimes linked to organized crime were brought to heel. Older residents generally considered their fortunes have improved under Chinese rule, pointing to better welfare and annual cash handouts backed by huge gaming tax reserves.

But following huge anti-government protests in 2019 in nearby Hong Kong, authorities have further tightened control in the city although political activism there did not pose the same threat to Beijing.

A vigil commemorating China’s bloody 1989 military crackdown on the Tiananmen Square pro-democracy protests was banned. Pro-democracy figures were barred from joining the legislative election in 2021. Last year, the city toughened its national security law and vocal political dissent has largely been silenced.

China's leadership is more concerned about diversifying Macao's economy, which has been heavily reliant on the gaming and tourism sectors.

Its incoming leader Sam Hou Fai, who was elected by about 400 Beijing loyalists in October, said the economic diversification is a key issue. The former top judge promised to accelerate plans to boost tourism and other sectors such as traditional medicines, finance, tech, exhibitions and commerce.

However, the city remains reliant on the gambling industry for revenues to support welfare programs and other goals laid out by Beijing, analysts say.

Xi will attend the inauguration ceremony of the new government on Friday and is expected to lay out his expectations for the city.

China has helped promote Macao's development by designating a special zone on neighboring Hengqin island in Zhuhai city that Macao and mainland Chinese authorities will jointly run.

Security has tightened during Xi's visit, including a ban on flying drones between Dec.14-22.

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