MACAU (BLOOMBERG) – President Xi Jinping praised the work of Macau’s government in maintaining stability and stressed that the gambling hub should diversify its economy as the former Portuguese colony celebrated the 20-year anniversary of its return to Chinese rule.

Mr Xi addressed a Friday morning (Dec 20) ceremony marking the handover that was attended by officials including Mrs Carrie Lam, the leader of Hong Kong, which has seen months of violent protests against Beijing’s increasing grip. Mr Xi’s visit to the city this week has drawn attention to the stark differences between Beijing-friendly Macau and its more rebellious neighbour.

“Although Macau is small, it has achieved unique purpose in implementing ‘one country, two systems,” he said, referring to the principle of government in Macau and Hong Kong, both special administrative regions of China.

He said the Macau government had “firmly safeguarded the authority of the central government” and “correctly exercised its high degree of autonomy”, including its implementation of a law that makes disrespecting China’s national anthem a crime.

Mr Xi also stressed the need for Macau – one of the world’s most popular gambling destinations – to diversify economically.

The government “must identify the main focus and relevant key projects for the appropriate diversification” of its economy, he said. He added that it needed to carve out a role in wider national strategies like the Greater Bay Area, which seeks to connect Hong Kong, Macau and Southern China, and Mr Xi’s signature Belt and Road trade and infrastructure initiative.

High Praise

Mr Xi on Thursday attended a cultural presentation and banquet dinner, where he praised Macau for implementing measures that he said were always in its interest, notably patriotic education. He also said the territory had resisted “external interference”. Beijing regularly says foreign forces are fomenting unrest in Hong Kong.

In recent weeks, Chinese officials have praised Macau for its patriotism and urged restive Hong Kong to emulate its neighbour.

Macau has become the world’s largest gambling hub over the past few decades and much of its stability can be traced to its monopoly over casino gambling in China. The industry accounts for 80 per cent of the government’s total revenue and supports roughly US$1,000 (S$1,355) in annual handouts per resident.

Unlike Hong Kong, Macau’s government passed a Beijing-mandated national security law a decade ago, and hasn’t seen mass protests since the government withdrew legislation that fattened the retirement packages for top officials in 2014.

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