Bringing the focus back home
Trump claimed that China is using American capital to bolster its military and intelligence operations, making all forms of investment detrimental to the long-term prosperity of the country.
CFIUS was directed to use its resources to crack down on the flow of money in the U.S. by people and companies associated with the Chinese region.
The government will also implement new rules to prevent U.S. companies and investors from supplying money that could be used to help China’s National Civil-Military Integration Strategy, which is a scheme created by the Chinese Communist Party to turn the People’s Liberation Army into one of the world’s best militaries by 2049.
In addition, the decree will put an end to “open-ended” mitigation agreements used by foreign investors.
The Ministry of Commerce of the People’s Republic of China said it will keep a “close eye” on the progress and effects of the new “discriminatory” standard. It also said the decision will have impacts on its trade relations with the U.S.
Economic impacts on Macau
Although Macau is halfway across the world and is not quite the size of the Californian city of San Francisco, it is of major importance to several U.S. companies.
Casino Sands China, Wynn Macau, and MGM China are owned by Las Vegas Sands, Wynn Resorts, and MGM Resorts International, all of which are headquartered in Las Vegas, Nevada.
MGM China generated $4.02 billion in total gaming revenue in 2024, a 27.6 percent year-over-year increase. Sands China produced $7.08 billion in year-end net revenue, and Wynn Macau produced $363.7 million in fourth-quarter revenue.
Despite its reputation as a mecca for east-Asian gambling, Macau is undergoing a regional transformation, albeit a slow one.
“In the face of the surrounding environment, competition in the tourism and gaming industry in Macau is intensifying, and the risks and challenges brought to Macau should not be overlooked,” said regional Chief Executive Sam Hou Fai. “The development of diversified industries has not been as expected by society and the new consumption pattern and the change of consumption concepts are bringing great challenges to Macau.”
In addition to the regions mentioned in the America First Investment Policy, Cuba, Iran, North Korea, Russia, and Venezuela were listed as “foreign adversaries.”
