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Professor: too early to predict impact of US-China tensions over Hong Kong on Macau gaming industry

Jane Ka Cheng Wong by Jane Ka Cheng Wong
Fri 5 Jun 2020 at 05:14
Professor: too early to predict impact of US-China tensions over Hong Kong on Macau gaming industry

Ricardo Chi Sen Siu

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A professor for Macau’s economy and gaming industry says it is too early to predict what kind of influence US economic sanctions imposed on Hong Kong would have on Macau’s economy, but suggested the Macau SAR government and operators pay close attention to US-China relations in the second half of this year.

US President Donald Trump threatened to place sanctions on Hong Kong this week after the Chinese National People’s Congress (NPC) agreed to implement a national security law on Hong Kong. The law would include revoking Hong Kong’s preferential treatment as a separate customs and travel territory from the rest of China. So far the White House has not provided an implementation timeline for any sanctions.

As Hong Kong fears losing its special close economic ties with the US, the escalating tensions between China and the US once again raise concerns about the impact this will have on Macau’s economy and gaming industry.

Ricardo Chi Sen Siu, Associate Professor in Business Economics and Director of the Centre for Career and Research Advancement in Integrated Resorts at Macau University, told Inside Asian Gaming the US Presidential election in November could have a big say in future relations between the nations.

“No matter the US sanctions on Hong Kong in recent days or US-China trade disputes in recent years, it is hard to have any clear and accurate predictions about the influence on Macau before the US election,” Sui said. “There are too many uncertainties.”

The Chinese NPC will offer legislative details of its national security law in Hong Kong in late June, with Siu suggesting Western governments will wait until then before making any decisions on how to react.

Unlike Hong Kong, Macau has always maintained a close relationship with the Beijing Government, and Macau officials and NPC deputies have expressed support for the Hong Kong national security law.

But Sui said even though the implementation of the national security law would lead US capital to be withdrawn from Hong Kong, “it’s still too early to say whether the US-China relations would cause difficulties for US capital on the re-tendering of gaming licenses in 2022 in Macau.”

Sui suggested the Macau SAR government and gaming operators keep an eye on developments between the US and China but should focus more on boosting their gaming and tourism offerings after the COVID-19 pandemic.

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Tags: casinosChinaDonald TrumpGamingHong KongMacauNational Security LawNorth AmericaRicardo Chi Sen SiuUSA
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Jane Ka Cheng Wong

Jane Ka Cheng Wong

Jane Ka Cheng Wong is a journalist who joined Inside Asian Gaming after working for local Macau media for many years. As part of the IAG team she covers Macau-based stories relating to politics, gaming, IRs and local associations among other topics. Jane is intrigued by unique scenarios, vibrant cultures and different people, and hopes to continue exploring new places around the world in the future.

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