The White House has officially classified Macau as a “foreign adversary,” placing it alongside Hong Kong, mainland China, Cuba, Iran, North Korea, Russia, and Venezuela. This new designation restricts entities and individuals associated with Macau, Hong Kong, and mainland China from investing in crucial sectors of the US economy, including technology, infrastructure, energy, and other strategic industries.
This decision, driven by former President Donald Trump, known for his critical stance towards China, also restricts American investments into China’s military-industrial complex. The sectors specifically targeted by these restrictions on outbound investments to China encompass artificial intelligence, quantum computing, biotechnology, aerospace, advanced manufacturing, and other technology-related fields.
The White House memorandum points out that Chinese enterprises often raise capital through American investors by issuing securities traded on US and international exchanges, lobbying for inclusion in US market indices, and engaging in various practices that provide access to US capital markets and intangible strategic benefits.
Additionally, the memo highlights that the US administration will streamline environmental review processes for domestic investments valued at $1 billion or more. Furthermore, it outlines plans to create stricter rules aimed at preventing Chinese-affiliated entities from acquiring key American businesses and assets, specifically noting real estate near sensitive or critical facilities.
Currently, the direct impact of these new measures on US-linked gaming operators in Macau remains uncertain. Until recently, the Macau-based gaming sector had largely avoided being entangled in broader US-China geopolitical tensions. However, the new designation could potentially complicate operations for casino executives in Macau, many of whom hold positions within the Chinese People’s Political Consultative Conference (CPPCC), even when affiliated with parent companies based in the United States.
