Macau included in US President Donald Trump’s investment restrictions against hostile “foreign adversaries”

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The United States has officially classified Macau and Hong Kong as “foreign adversaries,” placing them alongside nations such as Russia, North Korea, Cuba, and Venezuela.

This designation, made under the section 4 “America First Investment Policy” signed by former President Donald Trump on February 21st, marks a significant shift in US foreign relations.

The policy underscores the link between economic security and national security, signaling that the US government could impose restrictions on capital investment in these newly designated adversary regions.

Macau has attracted several major American operators, including Las Vegas Sands, Wynn Resorts, and MGM Resorts International. These companies have played a key role in transforming the once traditional Oriental casino town into the world’s largest gaming market. 

The influx of foreign investment began after China ended its 40-year gaming monopoly in 2001, with sector liberalization starting in 2002. Despite ongoing Sino-US tensions, these American operators continue to thrive in Macau, which remains heavily reliant on their tax contributions.

As for Hong Kong, also classified as a “foreign adversary,” it remains a key financial center where many of these gaming operators are listed on the Hong Kong Stock Exchange.

Short-term and long-term effects on Macau’s investment climate

In an interview with AGB, Sonny Lo, a commentator and political scientist, noted that the “America First Investment Policy focuses 90 percent on Chinese investment within the US.” However, he pointed out that the memorandum only briefly addresses investment in “foreign adversaries,” and many of the details have yet to be realized through law or administrative measures.

Sonny Lo, political scientist

Lo suggests that, in the short term, the policy will not lead to drastic changes in Macau’s investment climate. However, he sees “a lot of uncertainty” in the long run, as the concrete policies of the US government remain unclear. He emphasized that while the memorandum has been signed, it is still a policy outline that requires implementation through actual law or administrative action.

Lo also notes that changes may occur in US policy, but countermeasures could be implemented by China, potentially impacting Macau. In this context, Lo predicts that “China will likely wait to see how the US moves before deciding how to respond.”

Although Trump’s new policy primarily focuses on restricting Chinese capital investment in high-tech and military-related industries in the US, it also limits American capital from investing in similar industries in China or its affiliates. This has little direct connection to Macau’s industries. However, Lo outlined several potential impacts on Macau that may emerge in the wake of the policy:

• Tighter Reporting Requirements: Under Trump’s leadership, the US may introduce stricter reporting requirements for American investments in “foreign adversary” countries and regions, including Macau.
• More Rigorous Auditing: The US could increase the scrutiny and auditing of these investments, potentially affecting both the financial and operational aspects of the companies involved.
• Tax Implications: Increased auditing could lead to higher taxes for businesses operating in adversary countries, adding financial pressure on American companies.
• Fund Flow Restrictions: After collecting profits from investments in these regions, the US could impose additional restrictions on the flow of funds, making it more challenging for companies to repatriate capital.

Although it is still early to foresee the possible consequences, it is worth noting that many top casino executives in Macau, including those with US parent companies, hold political roles in the Chinese People’s Political Consultative Conference (CPPCC), adding an additional layer of complexity to the situation. This could potentially increase scrutiny of their operations, partnerships, and personal activities.

Since the news broke last week, however, there has yet to be a comprehensive analysis of the risks these connections pose to businesses operating in Macau.

Robert Goldstein, Chairman & CEO of Las Vegas Sands

Robert Glen Goldstein, Chairman and CEO of Las Vegas Sands, met with Wang Shouwen, Vice Minister of Commerce, in January this year to discuss expanding investments in China. However, it remains uncertain whether the latest developments regarding US policy will affect Sands China’s future investment decisions.

Additionally, Miriam Adelson, widow of the late Sheldon Adelson and a significant donor to pro-Trump super PACs, remains a close ally of Donald Trump. Her political contributions highlight the intersection of US politics and Macau’s gaming sector, given her affiliation with Las Vegas Sands. She donated $95 million to her pro-Trump PAC, Preserve America, positioning herself as one of the largest donors in the current election cycle.

https://agbrief.com/intel/deep-dive/28/02/2025/uncertainties-surround-macau-as-us-labels-it-a-foreign-adversary/

 fev25

US President Donald Trump signed a memorandum last Friday directing the Committee on Foreign Investment in the United States (CFIUS) to impose investment restrictions on “foreign adversaries”, including China, Hong Kong and Macau.

The memorandum, titled “America First Investment Policy” explicitly states that “foreign adversaries” include not only the People’s Republic of China, but also the Hong Kong and Macau special administrative regions, plus Cuba, Iran, North Korea, Russia and Venezuela.

In the memo, Trump emphasized that economic security is directly related to national security, and noted that China’s investments in US technology, agriculture and other strategic areas could threaten US interests.

Trump’s memo mentioned that China is using US capital to develop its military and intelligence organizations, which poses a potential risk to US domestic security and the global military force.

The CFIUS was ordered to use legal tools to limit investments in the US by individuals or companies associated with China, particularly in US technology, critical infrastructure, health care, agriculture, energy, raw materials and other strategic areas.

The US will adopt new rules to prevent US companies and investors from investing in industries that advance China’s National Civil-Military Integration Strategy, and will consider imposing restrictions on various types of investments, including private equity, venture capital, greenfield investments, corporate expansion and investments in publicly traded securities.

The Ministry of Commerce of the People’s Republic of China also responded, saying that the US approach is discriminatory and atypical of the market, and that it seriously affects normal economic and trade cooperation between enterprises of the two countries.

“China will keep a close watch on the US side and take necessary measures to defend its legitimate rights and interests,” the Ministry said.

The inclusion of Macau as a “foreign adversary” is notable given that three of the SAR’s six concessionaires – Sands China, Wynn Macau Ltd and MGM China – are US-based entities and part of an industry that generates more than 80% of Macau’s annual budget.

https://asgam.com/2025/02/24/macau-included-in-us-president-donald-trumps-investment-restrictions-against-hostile-foreign-adversaries/