The Third Plenary Session of the 20th Central Committee of the CCP – which ended last week – included decisions that significantly impact Macau and Hong Kong, by emphasizing their role in a broader national strategy. The full text on “comprehensively deepening reform and promoting Chinese-style modernization” points, for example, to the need to take advantage of the “One Country, Two Systems” policy, consolidating and improving Macau’s status as a “meeting place for high-level international talent”. Also noteworthy is the need to “deepen cooperation” and “convergence” in the Greater Bay Area; and to “improve systems and policies to promote exchanges and economic and cultural cooperation”.
Political analyst Sonny Lo, speaking to PLATFORM, highlights three decisions of relevance to the special administrative regions. Firstly, “Hong Kong is expected to remain a monetary, financial and aviation center,” and “both Macau and Hong Kong aim to attract high-level talent.” The MSAR deserves special mention as an international platform, crucial for attracting talent and maintaining openness; a strategy that “implies Macau’s continued importance as a bridge between China and the Portuguese-speaking countries,” comments Lo. Next, “Macau and Hong Kong must be integrated into the Greater Bay Area, as part of a national geo-economic plan to connect with the Yangtze River Delta and the Beijing-Tianjin nexus”. Finally, both regions should “deepen the great work of the united front, which implies the need to accelerate and broaden national security, national youth education, and carrying out various activities to unite overseas Chinese comrades.”
The central authorities are eager to make Macau an economically diversified city, without relying solely on gambling
Sonny Lo, political analyst
The Plenum’s decision does not explicitly mention Macau’s gambling industry, a circumstance that Lo believes suggests a significant shift in Beijing’s focus. “The central authorities are eager to make Macau an economically diversified city that does not rely solely on gambling. This change should accelerate and deepen Macau’s economic diversification plan and its integration with Hengqin.” Lo also referred to the Politburo’s desire for Macau and Hong Kong to implement permanent reforms, with the aim of “social stability, economic prosperity and improved conditions”.
Reforms and balance
The Dean of the Faculty of Business at the City University of Macau, José Alves, identifies six key reforms aimed at guiding China’s modernization and economic development. The focus, he explains, is on creating a supportive and adaptive environment for high-quality growth, shared prosperity and global competitiveness. “The CCP wants to create a fair and dynamic market environment; and this includes equal access to factors of production for all economic entities and the promotion of new growth engines.”
Alves also highlights the importance of effective governance and coordinated reforms in the fiscal, tax and financial sectors, in order to improve policy consistency. Integrated urban and rural development, with a commitment to openness, are vital components of these reforms. Implementing these reforms “presents both challenges and opportunities”, and it is critical to “balance the roles of the state and the market, manage potential disruptions caused by the reforms and coordinate the interests of all stakeholders”. Provinces and cities “will need to strengthen institutional capacity and involve all stakeholders to face these challenges,” concludes Alves.
Alves believes that the six reforms will have significant implications for Macau and the Greater Bay Area. In the case of the Macau SAR, “they could trigger greater economic diversification, regional integration and social development”. However, the academic warns, market-oriented reforms and increased competition “could pose challenges for traditional industries”. The Greater Bay Area “should experience accelerated development, driven by innovation and deepened regional integration. However, managing environmental pressures will be crucial, as will ensuring social equity and balancing the interests of the different cities and sub-regions,” he emphasizes.
The Greater Bay Area is set to experience accelerated development, driven by innovation and deepened regional integration. However, managing environmental pressures will be crucial, as will ensuring social equity and a balance of interests
José Alves, Dean of the Faculty of Business at the City University of Macau
The 1+4 strategy, which focuses Macau on the concept of “One Center, Four Platforms,” aligns well with the six reforms, says Alves, as it “already includes the development of the city as a World Tourism and Leisure Center,” something that can contribute to a “high-quality development” of the local economy.
Lusophony highlighted
Macau’s role as a service platform for trade and commercial cooperation with Portuguese-speaking countries is also seen as particularly significant. “Macau can facilitate trade and investment between China and Lusophone countries, particularly in sectors such as infrastructure, energy and agriculture. This can contribute to high-quality development and the promotion of new growth engines, as well as supporting the development of an open economy of higher standards,” summarizes José Alves. The city can serve as a bridge for cultural and interpersonal exchanges between China and the Lusophone countries, promoting mutual understanding and trust, something that the academic sees as supporting the development of new models of international cooperation and the building of a “community with a shared future for humanity”.
Macau “can facilitate capacity building and knowledge sharing between China and Portuguese-speaking countries, particularly in areas such as public administration, legal systems, health and education. This can contribute to the promotion of effective governance and the cultivation of high-quality talent, as provided for in the six reforms.” However, José Alves warns that the success of these reforms will depend on the ability of policymakers, businesses and other stakeholders to face the complex challenges and opportunities that will arise during their implementation. “It’s worth noting that adaptability and resilience, in fact, is a defining characteristic of China’s development model. This adaptability and resilience will be crucial in ensuring the success of the six economic reforms and allowing China to continue on its path of modernization and economic development.”
