A new memo signed by US president Donald Trump lists Macao as one of Washington’s “foreign adversaries,” along with mainland China, Cuba, Iran, North Korea, Russia and the current regime in Venezuela.
The memo, American First Investment Policy, is addressed to top officials including the US secretaries of state and defence and outlines Trump’s views on how and why the US must protect itself from the “new and evolving threats” that can accompany foreign investment.
It says: “For purposes of this memorandum, the term ‘foreign adversaries’ includes the PRC, including the Hong Kong Special Administrative Region and the Macau Special Administrative Region.”
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The document accuses China of using foreign investment to “obtain cutting-edge technologies, intellectual property, and leverage in strategic industries … often through partner companies or investment funds in third countries.” Beijing has consistently rebuffed such allegations.
Macao’s designation as a foreign adversary is noteworthy due to the SAR’s close ties to the US through three of its six gaming concessionaires. Sands China, Wynn Macau and MGM China are all owned by US companies, and major players in an industry that generates more than 80 percent of the Macao government’s annual revenue.
In the memo, Trump said that investments by allies could be subject to security provisions “including requirements that the specified foreign investors avoid partnering with United States foreign adversaries.”
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He also said that new rules would prohibit US companies and investors from investing in industries that might have military applications for China. The US Department of State has previously listed quantum computing, big data, semiconductors, 5G, advanced nuclear technology, aerospace technology and artificial intelligence (AI) as such industries.
China’s Ministry of Commerce has responded testily to Trump’s memo and its “various discriminatory initiatives to strengthen restrictions on two-way investment with China.”
Foreign Ministry spokesman Lin Jian said yesterday that the tightening of the US security review of Chinese investment in the US “is a serious blow to the confidence of Chinese enterprises in investing in the US,” and “it is the US’ own business environment that is being damaged.”
