Xia Baolong’s Macau Visit: A Deep Dive into Economic Realities

Xia Baolong, director of the Hong Kong and Macao Affairs Office of the State Council of China, recently concluded a six-day investigative visit to Macau. The visit, commencing on May 8, has sparked considerable interest, particularly concerning its potential impact on Macau’s economic policies and future development.

Arriving via Zhuhai Hengqin, Xia Baolong checked into Hsinchu Garden and later attended a dinner with Macau Chief Executive Cen Haohui and other key officials. The Macau News Bureau stated the purpose of the visit was to understand the latest developments in macau’s society and economy, and also the governance work of the new SAR government.

Hengqin Cooperation Zone: A Central Focus

This visit marks Xia Baolong’s third consecutive May inspection of Macau since 2023. His presence alongside Chinese President Xi jinping during the 25th anniversary of Macau’s return last year, and a subsequent February visit to the Hengqin Guangdong-Macao Deep Cooperation Zone, underscore the region’s strategic importance.

The Hengqin cooperation zone is widely considered a top priority. In December, Xi Jinping emphasized the zone’s purpose: promoting moderate and diversified development of Macau’s economy and facilitating the living and employment of macau residents. He cautioned against developing industrial projects that are inconsistent with this positioning.

Concerns have been raised about whether Hengqin’s development aligns with its intended purpose. Some business figures have warned against turning Hengqin into a real estate venture. Xia Baolong’s role includes ensuring that Hengqin’s development adheres to its original intention of promoting economic diversification.

Assessing Macau’s Leadership and Economic Landscape

Xia Baolong previously praised Chief Executive Cen Haohui for leading the governance team to resolutely implement the spirit of President Xi Jinping’s important speech and the central decision-making and deployment, be brave enough to take duty, and do a lot of useful and pioneering work, showing a good spirit. This on-site inquiry allows Xia Baolong to directly assess Cen Haohui’s work and policy implementation.

Kong Yongle, a lecturer at the School of Government Affairs and Policy Sciences of the Chinese University of Hong Kong, suggests that Xia Baolong’s visit aims to understand the upcoming Macau legislative Council elections in September and the impact of the global trade war on Macau’s industries.

The gambling industry remains an critically important economic pillar of Macau. It is estimated that Xia Baolong’s tour will examine the specific development of the gambling industry.
Kong Yongle, Lecturer at the School of Government Affairs and Policy Sciences of the Chinese University of Hong Kong

diversification imperative: Beyond Gaming

kong Yongle emphasizes the need for Macau to diversify its economy beyond the gaming industry. He suggests strengthening external publicity to highlight Macau’s unique ancient urban areas and establishing diverse brands in emerging markets.

macau’s over-reliance on a single industry poses risks, and diversification is crucial for sustainable economic growth. The focus on Hengqin and the directives from Beijing underscore the importance of this strategic shift.