JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Macao Special Administrative Region: Annual Report for 2021
Date: 2022-05-20
Institutions: European Commission, European External Action Service
Subjects: Macao, activity report, bilateral relations, coronavirus disease, economic cooperation, economic situation, epidemic, fundamental rights, political situation, regional integration

EN 

  EN 

   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 20.5.2022  JOIN(2022) 15 final  JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Macao Special Administrative Region:        Annual Report for 2021  
 
 
JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

MACAO SPECIAL ADMINISTRATIVE REGION 

ANNUAL REPORT FOR 2021 

Summary 

Since the handover of Macao to the People’s Republic of China in 1999, the European Union  
and  its  Member  States  have  closely  followed  political  and  economic  developments  in  the 
Macao Special Administrative Region (SAR) under the ‘one country, two systems’ principle. 
The EU supports this principle and its implementation, and this annual report on developments 
in Macao is issued in line with the commitment given to the European Parliament in 1997.  

In 2021, the implementation of the ‘one country, two systems’ principle enshrined in the Basic 
Law of Macao1  undermined the political rights and fundamental freedoms of the people of 
Macao. Meanwhile, it has become increasingly  challenging for Macao’s media to  express a 
broad range of views, and they are practising more self-censorship.  

While the Basic Law and other legislative acts do not provide for the introduction of universal 
suffrage  the  EU  has  continued  to  encourage  the  Macao  authorities  to  foster  greater  public 
involvement in elections for the position of Chief Executive and for the Legislative Assembly. 

On the economic front, in the first three quarters of 2021, Macao’s GDP rebounded by 27.5% 
year-on-year  to MOP 177 billion (EUR 19.6 billion). Although this is positive, this growth did 
not make up for earlier losses, and GDP was still 46.4% lower than in 2019 – MOP 331 billion 
(EUR 36.5 billion). 

The jobs market held up well, and the Macao SAR government rolled out COVID-19 support 
measures  for  the  population  and  companies.  However,  economic  recovery  has  largely 
depended  on  mainland  Chinese  tourists  returning  to  Macao.  In  the  longer  term,  economic 
diversification and regional integration have remained key strategies.  

The ongoing  COVID-19  travel  restrictions have  continued to  prevent officials from  the EU 
Office to Hong Kong and Macao from visiting Macao. This has hindered the Office’s work 
and limited contacts with SAR government officials and others. 

I. Political and social developments 

On 12 September, the election of the seventh Legislative Assembly of the Macao SAR took 
place.  14  lawmakers  were  directly  elected,  12  lawmakers  were  indirectly  elected.  On  23 
September, 7 additional lawmakers were appointed by Chief Executive Ho Iat-seng. Members 
of  the  Assembly  took  their  oaths  on  16 October.  Three  non-pro-establishment  politicians 

1  The  Basic  Law  is  the  constitutional  law  of  the  Macao  Special  Administrative  Region.  No  law,  decree, 
administrative regulation or normative act of the SAR can contradict this Law. The drafting of the Basic Law aims 
to define the system to be applied in the SAR and enshrine the “one country, two systems” and “high degree of 
autonomy. 

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secured seats in the legislature: veteran politician José Pereira Coutinho, Che Sai-wang and 
Lam U-tou. Che and Lam were new faces in the assembly, together with five pro-establishment 
lawmakers. 

The election turnout was 42%, meaning 137 281 people cast their vote. This was the lowest 
level on record since the handover in 1999. The average turnout in preceding elections since 
1999  had  been  56.56%.  Tong  Hio-fung,  chairperson  of  the  Legislative  Assembly  Electoral 
Affairs Commission, attributed the turnout to unstable weather and COVID-19 restrictions that 
prevented people stuck abroad from returning to vote. The election also had the highest ever 
number of blank votes (3 141) and the second-highest number of invalid votes (2 082). 

Before the election, for the first time, the authorities in Macao disqualified 21 candidates 
for not pledging allegiance to the SAR or supporting the Basic Law.  

On 9 July, Mr Tong announced the disqualification. This included all 15 candidates from pro-
democracy  groups  (New  Macao  Progressive  Association,  Democratic  Prosperous  Macao 
Association  and  New  Macao  Progressives).  On  12 July,  Mr  Tong  explained  that  police 
evidence indicated that the disqualified candidates either failed to support Macao’s Basic Law 
or had been disloyal to the Macao SAR. He said that the Legislative Assembly Electoral Affairs 
Commission  had  seven  criteria  to  assess  candidates’  qualifications.  These  criteria  ensure 
candidates  ‘sincerely  uphold’2 Macao’s  Basic  Law  and  bear  allegiance  to  the  Macao  SAR, 
including supporting the leadership of the Communist Party of China.  

Following an appeal of the decision to the Court of Final Appeal, the Court ruled in favour of 
the  disqualifications  on  31 July.  The  ruling  stated  the  candidates  concerned  had  attended  a 
commemoration of Liu Xiaobo and a Charter 08 exhibition3 and hence opposed the country’s 
constitutional  system.  The  ruling  also  said  the  disqualified  candidates  had  organised  and 
attended a 4 June Tiananmen vigil. The candidates were thus sabotaging the ‘one country, two 
systems’ principle and not bearing allegiance to the Basic Law of Macao.  

The  EU  issued  a  Spokesperson  Statement4 calling  the  decision  a  detrimental  step  that  ran 
counter to the rights guaranteed in Macao’s Basic Law. The decision also undermined political 
pluralism and curtailed democratic debate. The EU called for protected rights and freedoms to 
be  upheld  in  the  Macao  SAR  and  for  the  Legislative  Assembly  elections  to  be  open  to 
candidates from across the political spectrum. 

National security remained a political priority. The national security law first entered into 
force in 2009, but no one has been charged under it so far. The government announced that it 
would  launch  a  public  consultation  on  amending  the  law  in  the  first  quarter  of  2022  and 
complete it by the last quarter of the same year.  

2https://www.macaupostdaily.com/article11422.html and http://www.xinhuanet.com/gangao/2021-
07/12/c_1127648161.htm.  
3 Liu Xiaobo was the 2010 Nobel Peace Prize laureate and one of the most prominent human rights  activists in 
China. He was one of the authors of the Charter 08 manifesto, calling for peaceful democratic reform and rule of 
law in China.  
4 Statement by the Spokesperson on the disqualification of candidates for the Legislative Assembly elections, 
31/07/2021, available on line at https://eeas.europa.eu/headquarters/headquarters-homepage/102647/macao-
statement-spokesperson-disqualification-candidates-legislative-assembly-elections_en 

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As part of its drive to safeguard national security, the government also revealed its timeline for 
a new law to set up a secrecy regime. This law will ensure appropriate protection of government 
confidential information in the Macao SAR. The government aimed to complete the process 
by the last quarter of 2022.  

Chief Executive Ho announced that the government’s national security departments became 
fully operational in 2021. The judiciary police has intensified its work to safeguard national 
security and internet security, and prevent terrorism. The police has also stepped up efforts to 
prevent external elements from infiltrating and interfering in mainland China and the Macao 
SAR.  

The government also amended the law on the use and protection of the national flag, emblem 
and anthem to reflect the latest changes to the law of the  People's  Republic of China on the 
national flag and the law of the  People's  Republic of China on the national emblem.5 

Lastly, to improve security and help law enforcement, the government said it would deploy 
more  surveillance  cameras.  By  2028,  officials  plan  to  have  put  in  place  4  200  additional 
cameras.  

Some legislative steps were taken on important social issues, such as the Union Law. This 
came  after  years  of  repeated  rejection  of  similar  measures  proposed  by  pro-democracy 
lawmakers. The  government originally planned  a public consultation  on the law in  the first 
quarter  of  2021,  but  in  the  end  they  launched  it  on  31 October  for  45  days.  The  draft  text 
covered two major areas: the trade union   registration system and collective bargaining power. 
The government aimed to complete the legislative process by the last quarter of 2022, once 
both consultations  and the ‘sufficient collection’ of opinions from various sectors have been 
completed.  

The Macao SAR government continued to take measures to control the spread of COVID-
19, including citywide compulsory testing organised on two occasions. As of 30 December 
2021, 429 839 people had received two vaccine doses and 31 770 have received three. Overall, 
COVID-19 resulted in 79 confirmed cases and no deaths. The government has worked to ensure 
quarantine-free travel with mainland China. On 12 August, the two sides resumed quarantine-
free travel for the first time since restrictions began. By contrast, travellers from Hong Kong to 
Macao needed a negative test result and had to quarantine for 14 days.  

These strict entry rules prevented the EU Office from visiting the SAR, organising activities 
on the ground, and monitoring political and social developments. Under the rules, only visitors 
from mainland China, Hong Kong and Taiwan could enter Macao. Those who had visited Hong 
Kong 14 days before arrival had to quarantine for 14 days.   

Rights, freedom and equal opportunities 

Rights, fundamental freedoms and the rule of law as guaranteed in the Basic Law of Macao 
faced challenges in 2021. There was still no move to establish an independent human rights 

5 http://www.npc.gov.cn/englishnpc/c23934/202103/6dbc5853665d43dbaf2161a993370e24.shtml; 
http://www.npc.gov.cn/englishnpc/c23934/202103/4378544f87a54214a4a99d6860412062.shtml 

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body  in  response  to  the  recommendation  issued  by  the  UN  Committee  against  Torture  in 
December 2015. 

Press freedom faced increasing difficulties, with the media practising more self-censorship. 
The  Macau  Portuguese  and  English  Press  Association  released  a  statement  on  13 March 
voicing concern about new editorial guidelines for the Portuguese and English newsrooms at 
the public broadcaster Teledifusão de Macau (TDM).  

The  press  association  (AIPIM)  was  particularly  concerned  by  the  guideline  that  TDM  staff 
could not ‘relay information or opinions contrary to the policies of the Central Government’ of 
the People’s Republic of China and had to support measures adopted by the Macao SAR. In 
the end, the TDM’s Executive Committee held a two-hour meeting with six editorial members 
of  the  news  department.  TDM  said  that  its  editorial  policy  remained  unchanged  and 
‘encouraged’  staff  to  abide  by  the  principle  of  ‘loving  the  country  and  loving  Macao’ 6 . 
Afterwards, comments and information related to the 4 June commemoration were reportedly 
censored in two current affairs programmes.  

On  14 October,  the  Macao  Journalists  Association  (AJM)  announced  that  government 
departments had tightened press coverage restrictions of major government events to prevent 
the  spread  of  COVID-19.  Participants  now  had  to  be  vaccinated  at  least  once  and  have  a 
negative  nucleic  acid  test  result  48  hours  before  the  respective  events.  The  journalists’ 
association urged the authorities to reconsider these media arrangements and to balance public 
health and journalists’ right to report. 

On freedom of assembly, the Court of Final Appeal on 3 June 2021 rejected an appeal against 
a police ban of  the  annual  candlelight  vigil commemorating the Tiananmen crackdown.    In 
addition to citing concerns about the spread of COVID-19, the Court said that the organiser, 
the Democratic Development Union, invoked the right of assembly to  ‘stage a planned and 
deliberate attack’  7 against the central government.  

All  three  judges  on  the  judicial  panel  reasoned  that  the  proposed  assembly  could  seriously 
damage the honour, dignity and respect of the Central Government of the People’s Republic of 
China.  A  Macao  delegate  to  China’s  National  People’s  Congress  also  said  that  it  would  be 
inappropriate to hold such remembrance events in the future.  

Macao has not yet effectively enforced freedom of association and collective bargaining as 
laid down in  International  Labour Organisation  conventions. For example, the 2008 Labour 
Relations  Law  contained  some  rules  prohibiting  anti-union  discrimination  and  provided 
sanctions for such acts. However, it did not include a chapter on the right to organise and the 
right  to  collective  bargaining.  The  penalties  for  anti-union  discrimination  have  not  been 
dissuasive enough, particularly for large companies. Regarding the long-standing proposal for 
legislation on trade unions, labour activists have pointed out that the consultation text did not 
cover  the  right  to  strike  –  a  right  enshrined  in  the  Basic  Law  –  as  a  follow-up  to  a  failed 
collective bargaining process, potentially weakening the impact of the negotiation8.   

6  ‘ 澳 廣 視 執 委 會 晤 葡 文 新 聞 部 重 申 編 採 方 針 不 變 ’  (The  TDM  Executive  Committee  meets  with  the 
Portuguese  Press  Department  to  reiterate  that  the  editorial  policy  remains  unchanged)  15  March  2021. 
https://www.tdm.com.mo/zh-hant/news-detail/558430 
7 https://www.court.gov.mo/sentence/pt-0b9b84acaff12a34.pdf 
8 International Labour Organization (ILO), Observation (CEACR) - adopted 2020, published 109th ILC session 
2021. https://www.ilo.org/dyn/normlex/en/f?p=1000:13100:0::NO:13100:P13100_COMMENT_ID:4057118. 

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Macao  continues  its  efforts  to  address  human  trafficking.  These  include  training  police, 
customs, and social welfare officials; increasing anti-trafficking funding; holding employment 
rights  seminars  for  migrant  workers  vulnerable  to  exploitation;  and  making  laws  to  deter 
employment agencies’ practices that contribute to coerced debt. However, additional efforts 
are still needed to eliminate this problem.   

Macao  did  not  adopt  any  comprehensive  anti-discrimination  legislation  or  established  an 
independent  human  rights  institution  in  2021.  Discrimination  on  the  grounds  of  sexual 
orientation  and  gender  identity  continued  to  cause  concern,  notably  in  employment, 
education and healthcare. For example, the Macao authorities refrained again from protecting 
same-sex cohabitants under the Domestic Violence Legal Framework. The government cited 
‘the  lack  of  consensus  in  the  society  on  the  recognition  of  same-sex  marriage  and  the 
incompatibility with the current legal system of the Macao SAR.’ 9  

Meanwhile,  to  control  the  spread  of  COVID-19,  Nepalese  and  Vietnamese  non-resident 
workers were targeted and had to undergo frequent nucleic acid tests. This measure triggered 
concerns of racial discrimination.   

Macao  continued  its  efforts  to  fight  corruption.  In  May  2021,  the  Commission  Against 
Corruption (CCAC) published its 2020 annual report  describing its work to tackle corruption 
in the public and private sectors. The CCAC received 479 complaints and reports over the year  
2020. It referred 105 cases to the Anti-Corruption Bureau for follow-up and 282 cases to the 
Ombudsman Bureau to carry out inquiries. One of the Ombudsman Bureau’s cases  was then 
investigated in detail.10  

II. Economic developments  

In  the  first  three  quarters  of  2021,  Macao’s  GDP  rebounded  by  27.5%  year-on-year11 to 
MOP 177  billion  (EUR 19.6  billion)12.  However,  this  was  still  46.4%  lower  than  in  2019, 
which was MOP 331 billion (EUR 36.5 billion). This shows that Macao’s economy is still 
heavily affected by the COVID-19 pandemic.  

In  October,  the  IMF  cut  its  growth  forecast  for  2021  to  20.4%,  down  from  61.2%  in  April 
202113. In 2020, Macao’s GDP contracted by 54% (after only contracting by 2.5% in 2019) –
this was due to the lack of tourism revenue in what is the world’s largest gaming hub.  

Macao’s economic challenges were caused by a drop in tourists due to travel restrictions 
both in Macao and in mainland China. China is Macao’s main tourist market, making up 70% 
of its visitors before the pandemic. Despite a 32.2% recovery year-on-year, only 6.1 million 

9 http://daccess-ods.un.org/access.nsf/Get?Open&DS=CCPR/C/CHN-MAC/RQ/2&Lang=E 
10 https://www.ccac.org.mo/pdf/en/intro/2020/2020ch1.pdf 
11 Statistics in this report are the latest available at the time of writing (early December 2021). Source: Statistics 
and Census Service, Government of Macao Special Administration Region (SAR). https://www.dsec.gov.mo/en-
US/  
12 Converted to euro using the December 2021 InforEuro exchange rate.  
13 ‘Recovery  during  a  pandemic:  health  concerns,  supply  disruptions,  and  price  pressures’,  October  2021. 
https://www.imf.org/en/Publications/WEO/Issues/2021/10/12/world-economic-outlook-october-2021 

5 

 
 
 
 
 
 
 
 
 
 
 
                                                           
visitors entered the SAR in the first 10 months of 2021, which is less than 20% of the number 
of visitors for the same period in 2019 (33.4 million).  

Exports of gaming services14 usually account for about half of Macao’s GDP. However, due to 
the low tourist numbers, these exports only came to MOP 53.8 billion (EUR 5.9 billion) in the 
first three quarters of 2021 – a third of their value for the same period in 2019 (MOP 179 billion 
/ EUR 19.7 billion). The very low base in 2020 (MOP 30 billion / EUR 3.3 billion) meant that 
even the 79.4% growth year-on-year in gaming services in the first three quarters of 2021 was 
still far from pre-pandemic levels. The average hotel occupancy rate was 50% (in the first nine 
months of 2021), compared to 22% in 2020 and 91% in 2019 (for the same period).  

The labour market held up well, with a 2.9% unemployment rate (over 11 000 people) in 
September 2021, compared to 1.7% before the pandemic. Unemployment among young people 
(under 25 years) was 11.2% in September 2021.  

Macao  experienced  deflation  in  2021  and  the  average  composite  consumer  price  index 
decreased by 0.19% year-on-year in the first 10 months.  

The  reduced  level  of  economic  activity  and  fiscal  support  measures  rolled  out  by  the 
government resulted in lower fiscal revenue, including from gaming tax. The government had 
to draw from the SAR’s fiscal reserves to finance spending. Nonetheless, reserves remained 
high (MOP 657 billion / EUR 72.5 billion as of June 2021), and they are enough to cover an 
estimated 6 years of government expenditure at 2021 budget levels. 

Travel  restrictions  with  the  rest  of  the  world  in  2021  presented  significant  operational 
challenges  for  companies.  Most  foreigners  were  banned  from  entering  the  country,  while 
Macao residents arriving from outside mainland China had to quarantine for long periods.  

In 2020, the stock of foreign investments in Macao was MOP 300 billion (EUR 33 billion), 
compared to MOP 351 billion (EUR 39 billion) in 2019, with 28% originating in Hong Kong 
and 20% in mainland China.  

Economic policy 

On 16 November 2021, the Chief Executive delivered the policy address for 2022. Economic 
strategies  included  containing  the  pandemic,  supporting  the  recovery,  pursuing  economic 
diversification,  and  boosting  innovation  and  technology.  Strengthening  integration  with  the 
mainland was also a key focus. The government planned to pursue administrative reforms and 
improve  urban  development  by  carrying  out  transport  and  other  infrastructure  projects, 
including an extension of the airport.   

Fighting  the  pandemic  and  supporting  the  economy  remained  the  government’s  key 
priorities  in  2021.  The  government  completed  several  rounds  of  mass  community-wide 
testing, while keeping tight  border controls  and  encouraging  vaccination (about  52% of the 
population had been vaccinated by the end of October).  

The government introduced several economic measures, including tax reductions and various 
fee waivers for people and companies, rental concessions, and a subsidised training scheme. 

14 Exports of gaming services are measured as the expenditure of non-residents on gaming.  

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Residents  benefited  from  the  wealth  partaking  scheme  (MOP 10 000  /  EUR 1 100  for 
permanent residents and MOP 6 000 / EUR 660 for non-permanent residents). An electronic 
consumption  plan  to  support  Macao’s  digital  ambitions  also  brought  benefits.  Residents 
received  MOP 8 000  /  EUR 880  to  spend  using  mobile  payment  platforms  or  electronic 
vouchers. The government announced that the plan had injected MOP 4.6 billion (EUR 508 
million)  into  Macao’s  consumer  market  (as  of  end  October  2021).  Initiatives  were  also 
launched  to  support  the  tourist  industry  (for  instance,  the  ‘Stay,  Dine  and  See  Macao’  and 
‘Macao week’ events held in mainland Chinese cities).  

The government announced that it would speed up infrastructure construction. Projects include 
the fourth Macao-Taipa cross-harbour route linking north and south Macao, expansions to the 
Light Rapid Transit system and Macao International Airport, a new healthcare complex, and 
housing projects. The government also announced that Macao’s new Urban Master Plan (2020-
2040) should be launched in 2022.  

In the second half of 2021, the government carried out a public consultation on Macao’s 
Gaming  Law  to  reform  the  gaming  concession  and  sub-concession  system.  The  proposal 
included  stricter  rules  for  e-gaming  concessionaires  and  other  operators.  These  rules  could 
include  appointing  government  delegates  to  casino  operations,  restricting  dividends  to 
shareholders, and strengthening  penalties  for violations.  Increased  supervision  could  reduce 
control of the industry by foreign shareholders. The share prices of listed gambling operators 
in  Macao  dropped  when  the  consultation  was  announced  in  September.  The  review  was 
launched as Macao’s three gaming concessions and three sub-concessions are set to end in 
June 2022, but they can still be extended by the government – especially if revising the Gaming 
Law is not completed by then.  

The strategy towards economic diversification aimed at further developing industries such as 
non-gaming  tourism,  conventions  and  exhibitions,  health  (including  traditional  Chinese 
medicine), financial services, and science and technology. The strategy will also support small 
and  medium-sized  businesses.  Despite  some  progress  in  past  years,  the  gaming  sector  still 
accounted for about half of Macao’s GDP (pre-COVID), and other industries rely heavily on 
spending by mainland China.  

On financial services, the authorities aimed to develop a local bond market (including green 
bonds), wealth management  and  financial leasing activities, investment  banking, and  cross-
border renminbi settlements. To achieve this, the government announced that work would be 
carried out to reformulate the local financial system’s legal framework and develop Macao’s 
financial market infrastructure. This would include reforming the laws on issuing and trading 
bonds  and  wealth  management  activities,  establishing  a  central  securities  custody  system, 
introducing  investment  bank  licences,  and  promoting  digital  currencies  (possibly  with  a 
centralised digital yuan to be used in Macao).  

The policy address outlined measures for the circular economy and climate change, including 
reducing  road  and  carbon  emissions  by  phasing  out  polluting  vehicles,  promoting  electric 
vehicles, and setting up more charging facilities in public car parks. Imports of non-degradable 
disposable plastic straws and drink stirrers would be prohibited, and action would be taken to 
address coastal sewage and pollution. Macao also announced a plan to build an organic waste 
recycling centre with construction due to start in 2022.  

7 

 
 
 
 
 
 
 
 
 
Regional cooperation  

Integration with mainland China, as part of the Guangdong-Hong Kong-Macao Greater Bay 
Area (GBA), remained a key priority for Macao’s government. Within the GBA, Macao aimed 
to consolidate its position as a centre for tourism and leisure and a platform for business and 
financial services, notably between China and Portuguese-speaking countries.  

In May 2021, Macao set up the Working Committee for Integrating into National Development 
to coordinate the SAR’s strategy to participate in the GBA and Belt and Road initiative15. A 
new Guangdong-Macao border checkpoint – the Qingmao checkpoint – started operations in 
September 2021 to increase capacity for cross-border travel between Macao and Guangdong 
province. 

The Greater Bay Area Wealth Management Connect was launched in the second half of 
2021. It allows Hong Kong and Macao residents and Guangdong eligible residents to carry out 
cross-border  investments  in  wealth  management  products  sold  by  banks  in  the  GBA.  The 
Connect project is a concrete step towards integrating financial flows within the GBA. It started 
with a relatively small aggregated quota of RMB 150 billion (in each direction and shared by 
Hong Kong and Macao).   

Another  area  of  cooperation  with  the  mainland  is  the  planned  upgrade  of  the  Guangdong-
Macao  Intensive  Cooperation  Zone  in  Hengqin.  Located  west  of  Macao  in  Guangdong 
province, the Hengqin cooperation zone is being developed jointly by Guangdong (including 
Zhuhai)  and  Macao16.  In  September,  a  master  plan  was  announced  by  the  Chinese  Central 
Government to boost the zone’s development17. The aim was to promote the diversification 
and long-term development of Macao, while increasing integration with the GBA and mainland 
China’s national development. Targeted industries reflected those in the SAR’s diversification 
strategy. They include innovative and high-end manufacturing industries, financial services, 
traditional Chinese medicine, convention and exhibition services, trade and digital trade, and 
medical tourism.  

A  residential  project  for  Macao  residents  –  the  Macao  New  Neighbourhood  –  was  under 
construction in Hengqin. Cross-border connectivity should be improved – the number of Macao 
vehicles allowed to enter Hengqin was increased to 10 000 and the construction of the Light 
Rapid Transit Hengqin Line was started in 2021.  

III. EU-Macao bilateral relations  

The  24th  EU-Macao  Joint  Committee  meeting  did  not  take  place  in  2020.  Despite  EU 
requests to hold the 2021 meeting online, it did not go ahead. Travel restrictions and restricted 
access to the Macao SAR undermined the EU’s capacity to cooperate with local authorities and 
to reach out to the business and diplomatic community and civil society.  

The EU remained Macao’s second-largest trading partner in goods after mainland China. 
This accounted for 29% of the SAR’s total trade in the first 10 months of 2021. EU-Macao 

15 https://www.gov.mo/en/news/133867/ 
16 The Hengqin cooperation zone is located at the southern edge of the Chinese city of Zhuhai. Only a strip of 
water separates the zone from Macao, and a bridge links the two together. 
17 Details  on  the  development  of  Guangdong-Macao  Intensive  Cooperation  Zone  in  Hengqin  are  available  at 
https://www.hengqin-cooperation.gov.mo/zh-hans/   

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bilateral trade is dominated by EU exports – around 32% of Macao’s imports originated in the 
EU.  The  EU  has  long-standing  trade  surpluses  with  Macao.  This  can  be  explained  by  the 
growth  of  the  gaming  and  tourism  sectors  fuelling  Macao’s  imports,  while  the  SAR’s 
manufacturing sector accounted for a small share of the local economy.  

Based on Eurostat data, EU bilateral trade in goods with Macao more than doubled during 
the first 9 months of 2021 to EUR 944 million (a 114% increase year-on-year). EU exports to 
Macao  amounted to  EUR 914 million,  resulting  in  a trade surplus  of  EUR 885 million.  EU 
exports to Macao were mostly luxury goods, leather articles, clothing and apparel, and watches 
and jewellery.  

The EU remained Macao’s fourth-largest source of foreign investment in 2020 (excluding 
offshore centres) after Hong Kong, mainland China and the US. According to Macao statistics, 
the EU accounted for 4.6% of the total foreign direct investment (FDI) stock in 2020. Portugal 
alone accounted for 70% of EU investment in the SAR. According to Eurostat, stocks of EU 
FDI into Macao dropped by over 25% in 2020 and reached EUR 1.42 billion as of the end of 
202018, while Macao FDI stocks in the EU amounted to EUR 1.85 billion. 

Due to the continuous travel restrictions caused by the pandemic, attending Macao trade fairs 
was not possible. However, members of the Macao European Chamber of Commerce and the 
European Chamber of Commerce in Hong Kong who were in Macao were able to attend the 
Macao International Trade and Investment Fair in December 2021. 

18 Eurostat statistics available in February 2022 at 
https://ec.europa.eu/eurostat/databrowser/view/BOP_FDI6_GEO__custom_2086845/default/table?lang=en  

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