tariff hikes, but Macao casinos haven’t been targeted.
Other companies have been hit by retaliation for U.S.
Macao is “dedicated to steering the composition of industries towards adequate diversification,” said its economy secretary, Lei Wai Nong, at a May 31 government meeting.Īn added complication for the Americans: Relations between Xi’s government and Washington are strained by disputes over trade, technology, human rights and other irritants. Even before tourist travel was shut down to fight COVID in 2020, the mainland was trying to limit the flow of gamblers across the fenced boundary that separates Macao from Guangdong province. The territory of 700,000 people crowded onto a 30-square-kilometer (12-square-mile) peninsula jutting into the South China Sea near Hong Kong is the biggest global center for gambling but is under pressure from Chinese President Xi Jinping’s government to rely less on its dominant industry.īeijing wants theme parks, entertainment and conventions to attract more non-Chinese visitors. They already were operating under rules imposed in late June that limited the number of their employees to 10% of normal.įinancial analysts expect the Americans to get licenses, but the government says bidding is open to anyone. Rules released in early July say any that want to operate over the next 10-year period face an added requirement to invest in “non-gaming projects.”Ĭasinos face still more financial pressure after they were ordered to close this week, along with most other businesses, while Macao tries to control a renewed coronavirus outbreak. The licenses of MGM Resorts, Las Vegas Sands, Wynn Resorts and three Chinese rivals that invested billions of dollars in Macao expire in December. The former Portuguese colony stayed out of business decisions for decades and now is aligning with official strategy on China’s mainland, where foreign companies are required to help pay for the ruling Communist Party’s development ambitions, profitable or not. BEIJING (AP) - Losing money due to COVID, the American casino giants that helped make Macao the “Las Vegas of Asia” face a fresh challenge: The tiny Chinese territory wants them to help reduce its reliance on gambling by paying to build theme parks and other attractions.
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