JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Macao Special Administrative Region Annual Report for 2022
Date: 2023-08-18
Institutions: European Commission, European External Action Service
Subjects: Macao, activity report, bilateral relations, coronavirus disease, economic cooperation, economic integration, economic situation, epidemic, human rights, political situation

EN 

  EN 

   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 18.8.2023  JOIN(2023) 29 final  JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Macao Special Administrative Region     Annual Report for 2022  
 
 
JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

MACAO SPECIAL ADMINISTRATIVE REGION 

ANNUAL REPORT FOR 2022 

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 under the Basic Law, which is intended to ensure that the 
way  of  life,  rule  of  law  and  protection  of  fundamental  rights  and  freedoms  in 
Macao remain unchanged until 2049. 

This  annual  report,  which  covers  the  year  2022,  is  issued  in  line  with  the 
commitment made to the European Parliament in 1999. 

Macao’s integration into the national development plan accelerated in 2022. Its 
government proceeded with the amendment of the Law on Safeguarding National 
Security, thereby potentially undermining the political and fundamental freedoms 
enshrined  in  the  Basic  Law.  On  15 December,  the  Legislative  Assembly 
unanimously adopted the bill at first reading. 

The erosion of Macao’s high degree of autonomy, and of the rights and freedoms 
that were meant to be protected until at least 2049, continued in 2022.   

That  year  was  marked  by  stringent  COVID-19-related  social  and  travel 
restrictions that isolated Macao from the rest of the world. In February, Macao 
eased travel restrictions for travellers from mainland China to enable the recovery 
of an economy that relies heavily on Chinese tourism. 

2022  saw  a  drastic  change  in  the  gaming  environment,  with  the  trial  of 
Alvin Chau,  the  chairperson  of  the  largest  casino  ‘junket’  operator1,  and  the 
adoption of a new gaming law. 

Economic  diversification,  integration  into  the  Greater  Bay  Area  and  the 
development of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin 
remained  the  main  development  strategies  under  the  guidance  of  the  central 
government in Beijing. 

1 In the casino world, a 'junket' is a short-term travel programme arranged by a junket operator to attract high-wealth 
gamblers to Macao, largely from mainland China. 

1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
During  the  first  three  quarters  of  2022,  Macao’s  GDP  dropped  by  27.8%  to 
Macanese  Pataca  (MOP) 130.3  billion  (EUR 15.6  billion),  61%  lower  than  in 
2019  (pre-pandemic).  The  labour  market  held  up  well,  and  the  government 
continued  to  provide  COVID-19  support  measures  for  the  population  and 
companies. 

The  COVID-related  travel  restrictions,  including  a  two-week hotel quarantine, 
continued to prevent officials from the EU Office from visiting Macao or holding 
events there, thus hindering their work and limiting their contact with government 
officials, civil society, companies and other stakeholders. The travel restrictions 
also hampered the EU Member States’ consular access to EU citizens in Macao 
and consular access to Portuguese citizens in Hong Kong. 

I. 

Political, legal and social developments 

Since  the  disqualification  of  21  candidates  ahead  of  the  Legislative  Assembly 
elections in 2021, the opposition is no longer represented in the Assembly. When 
publishing the Assembly’s activity report, however, its president declared that the 
body’s efficiency had ‘significantly increased’. 

In  December,  Macao  elected  12  delegates  to  the  National  People’s  Congress 
(NPC) from a total of 15 candidates. Nine of the delegates elected were former 
NPC members, including the president of the Assembly. 

The Macau Lawyers’ Association elected as its head Vong Hin Fai, a member 
of the Legislative Assembly and China’s National People’s Congress. 

The Taipei Economic and Cultural Office in Macao continued its operations. 
In October, the Taiwanese Minister of the Mainland Affairs Council confirmed 
that Macao had granted a visa extension to the three representatives of Taiwan in 
the  SAR,  after  a  diplomatic  stand-off  related  to  Macao’s  request  for  the 
representatives to sign a ‘one China pledge’, acknowledging Taiwan as part of 
China. Macao continues to operate an Economic and Cultural Office in Taiwan. 

On 10 April 2022, the Forum for Economic and Trade Cooperation between 
China  and  Portuguese-speaking  countries  (Forum  Macao)  held  an 
Extraordinary  Ministerial  Conference  on  Economic  and  Trade  Cooperation 
between China and Portuguese-speaking Countries. Chinese Premier Li Keqiang 
delivered the opening speech online, in which he called for increased cooperation 
between China and Portuguese-speaking countries and set up a communication 
centre on epidemic prevention in Macao. 

2 

 
 
 
 
 
 
 
 
 
 
 
Impact of COVID-19 policies 

Macao  implemented  mainland  China’s  ‘dynamic  zero-COVID  strategy’.  In 
January,  Macao  imposed  a  two-week  ban  on  inbound  passenger  flights  from 
outside mainland China, after identifying three positive cases among travellers. 
On  1 September,  Macao  reopened  its  border  to  the  outside  world,  allowing 
citizens  from  41  nations  to  enter  the  territory  without  prior  approval  from  the 
health authorities. Hotel quarantine remained in place for travellers from outside 
mainland  China.  The  length  of  quarantine  was  progressively  reduced  from  21 
days at the beginning of the year to 5 days towards the end of the year. A strict 
lockdown  was  implemented  between  11 July  and  23 July.  The  government 
ordered residents to undertake several rounds of PCR and rapid antigen testing at 
various stages of the local outbreak. A testing campaign targeted specific foreign 
nationals, in particular Filipinos, who are often employed as domestic workers2. 

Consular  access  was  not  possible  for  diplomats  in  Hong  Kong  accredited  to 
Macao due to the strict quarantine requirements. 

The population dropped to 672 800 inhabitants in 2022, according to the Statistics 
and Census Bureau3. Both the number of non-resident workers and the number 
of European citizens resident in Macao decreased. 

Legislative developments 

There  were  two  main  legislative  developments  in  2022.  The  first  was  the 
amended  Gaming  Law4,  which  seeks  to  increase  the  authorities’  control  over 
casino operations and, in particular, over casino junket operators. The second was 
the amendment of the National Security Law, which was still ongoing at the end 
of the year. The draft passed at first reading in December indicated that the law 
would  be  more  restrictive  and  aligned  to  the  National  Security  Law  of  Hong 
Kong5. 

The  high-profile  trial  of  gaming  tycoon  Alvin  Chau,  who  was  operating  VIP 
rooms in casinos, underscored the authorities’ determination to strengthen control 
of  the  gaming  sector.  The  court  found  Chau  guilty  on  162  charges,  including 
enabling illegal gaming and fraud, and sentenced him to 18 years in prison in 
January  2023.  The  second-largest  junket  operator,  Levo  Chan  was  also 
prosecuted  for  fraud,  money  laundering,  and  running  a  criminal  syndicate6. 

2  https://www.thestandard.com.hk/breaking-news/section/3/192590/Macau%E2%80%99s-Covid-zero-plan-now-targets-
city%E2%80%99s-Filipino-workers. 
3 https://www.dsec.gov.mo/ts/#!/step2/KeyIndicator/en-US/240. 
4 https://www.al.gov.mo/pt/law/year/507. 
5 https://www.al.gov.mo/pt/law/lawcase/553. 
6 https://www.thestandard.com.hk/section-news/section/11/249158/18-years-in-jail-for-junket-king 

3 

 
 
 
 
 
 
 
 
 
Macao’s economy is expected to become less reliant on gambling activities, in 
the context of China’s fight against corruption and money laundering. 

In his November policy address, Chief Executive Ho Iat Seng prioritised social 
issues, quoting from General Secretary Xi Jinping’s 1 July speech to mark the 
100th  anniversary  of  the  founding  of  the  Chinese  Communist  Party.  He 
announced  that  the  government  would  proceed  with  the  fifth  phase  of  an 
extensive public CCTV system known as the ‘Sky Eye’. Members of civil society 
and  pro-democracy  politicians  have  expressed  concerns  about  the  potential 
impact on privacy and the use of facial recognition technologies. In July, the UN 
Human Rights Committee echoed these concerns7. 

In the policy address, Chief Executive Ho also referred to plans to reform the 
Legislative  Assembly’s  electoral  system  in  2023,  to  implement  the  ‘patriots 
administering Macao’ principle. 

The  Chief  Executive  also  announced  the  adoption  of  the  Trade  Union  Law. 
Although the right to create trade unions was enshrined in the Basic Law, Macao 
did not have a law legalising their establishment. In January 2023, the Legislative 
Assembly passed the bill at first reading. Civil society expressed concern that the 
legislation did not include the right to strike and did not provide for collective 
bargaining. 

National security 

The government increased the emphasis on national security. On 15 December, 
the Legislative Assembly passed a bill entitled ‘Amendment to Law No 2/2009 
– Law on the Safeguarding of National Security8’ at first reading. That Law, 
which was first passed in 2009, outlawed treason, secession, acts of subversion 
against  the  Central  People’s  Government,  sedition,  the  theft  of  state  secrets, 
foreign  political  organisations  endangering  national  security  in  Macao,  and 
political organisations in Macao colluding with foreign political organisations to 
endanger national security. 

In August, at the launch of the consultation, the Secretary for Security declared 
that the amendment would enable the law to safeguard national security to the 
same extent as the laws of mainland China and of Hong Kong. The consultation 
document stated that, in relation to defending national security, there is only the 
responsibility of ‘one country’ without the distinction of ‘two systems’. 

7 https://tbinternet.ohchr.org/_layouts/15/treatybodyexternal/SessionDetails1.aspx?SessionID=2572&Lang=en 
8 https://www.al.gov.mo/pt/law/lawcase/553 

4 

 
 
 
 
 
 
 
 
 
The amended law expands the scope of the existing offences. The offence of 
secession now includes ‘non-violent’ actions instead of only ‘violent and other 
serious  illegal  actions.’  The  target  of  subversion  now  covers  the  entire  state 
regime.  The  theft  of  state  secrets  can  be  subject  to  stricter  punishment  if  the 
information endangers the country’s independence, unity and security interests. 
The scope of the charge of collusion has been broadened to collusion with any 
organisations,  associations  and  individuals  outside  of  Macao.  The  amendment 
has created new offences, such as the ‘instigation or support of sedition’, which 
targets speech in private settings. The law’s ‘precautionary measures’ authorise 
the interception of personal communications and the imposition of temporary exit 
bans  on  individuals  ‘who  display  a  tendency  to  commit  a  crime  that  could 
endanger national security’. This goes beyond the provisions included in Hong 
Kong’s National Security Law (NSL). 

The Macau Lawyers’ Association and the Association of Synergy of Macao 
pointed out that the specific amendment clauses could not be commented on as 
the  consultation  document  did  not  list  them.  The  Macau  Journalists’ 
Association  expressed  concern  that  the  scope  of  various  offences  had  been 
expanded  without  clear  legal  definitions.  The  association  pointed  out  that  the 
offence of subversion could be used as a means to restrict freedom of expression 
and asked if the government would issue guidelines. 

Rights, freedoms and equal opportunities 

In July, in its periodic review of Macao under the  International Covenant on 
Civil  and  Political  Rights,  the  United  Nations  Human  Rights  Committee 
expressed concern about the ban on peaceful assemblies, the lack of protection of 
migrants’ rights, and the eligibility criteria for the Legislative Assembly9. 

The Committee noted that Macao’s judiciary appeared to have misinterpreted the 
Covenant and introduced excessively broad restrictions on the right to freedom 
of expression and participation in public affairs. The Committee urged Macao to 
‘intensify  its  efforts  to  raise  awareness  among  judges,  prosecutors,  the  legal 
profession and the general public of the rights set out in the Covenant, and their 
applicability under local law.’ 

Freedom of assembly was still under threat. In 2020 and 2021, the authorities 
rejected  the  application  from  the  Democratic  Development  Union  (DDU)  to 
organise  candlelight  vigils  on  4 June  to  commemorate  the  anniversary  of  the 
Tiananmen  massacre  in  1989,  citing  COVID-19  as  a  reason  in  2020  and  the 
possibility of ‘damage the reputation of the central government’ in 2021. In 2022, 

9 https://tbinternet.ohchr.org/_layouts/15/treatybodyexternal/Download.aspx?symbolno=CCPR%2FC%2FCHN-
MAC%2FCO%2F2&Lang=en 

5 

 
 
 
 
 
 
 
 
the DDU decided not to apply for an authorisation to organise a candlelight vigil 
on 4 June, fearing that participants were at a higher risk of arrest. 

Freedom of association. The government initiated the procedure for adopting a 
Trade  Union  Law,  which  does  not,  however,  include  the  right  to  strike  or  to 
collective bargaining. On 12 June, the report on the 45-day consultation that took 
place  in  2021  was  published10.  It  noted  that  some  opinions  highlighted  the 
absence of the right to strike in the proposed law. In response, the government 
said  that  the  law  would  introduce  a  ‘brand  new’  system  that  employers  and 
workers should both adopt ‘gradually’. 

Press  freedom  was  still  under  pressure,  as  the  formerly  vocal  journalists’ 
association, the Macau Portuguese and English Press Association, elected a new 
board that pledged to work with the government and to obtain more funding from 
the Government Information Bureau. 

Privacy and data protection were a source of concern. In the context of the fight 
against COVID-19, the authorities implemented a system of tracking applications 
involving  the  installation  of  software  for  geolocation  and  the  collection  of 
personal data. 

The  amended  Legal  System  Governing  the  Interception  and  Protection  of 
Communications authorises the police to intercept telecommunications in cases 
of suspected crimes such as terrorism, crimes endangering national security or 
cybercrime. Under certain circumstances, the police are allowed to request phone 
logs from telecom operators without prior approval from a judge. From August 
2023, telecom operators will face punishment if they fail to provide data at the 
request of government agencies. 

There  are  around  23 543  non-resident  domestic  workers  in  Macao,  most  of 
whom  are  women  originating  from  the  Philippines,  Vietnam,  Indonesia, 
Myanmar  and  Nepal.  In  2022,  pandemic-related  travel  restrictions  prevented 
them from reuniting with their families abroad. According to domestic workers’ 
unions, there were instances where domestic workers were not paid, and cases of 
domestic  workers  losing  their  employment  due  to  fear  of  contamination. 
Employers did not have to subscribe to health insurance for domestic workers. 
There was still no standard contract and no minimum income, as the Law on the 
Minimum  Wage  for  Workers  does  not  apply  to  foreign  domestic  workers. 
Recruitment agencies continued to charge domestic workers expensive fees, often 
equivalent to two months’ salary. 

10 https://www.gov.mo/pt/consulta-de-politicas/consulta-publica-sobre-a-lei-sindical/ 

6 

 
 
 
 
 
 
 
 
 
There were cases of discrimination against ethnic minorities. On 21 July, the 
government ordered all Filipino nationals, including those resident in Macao, to 
undergo three  consecutive  days of  nucleic acid tests  from 22 to 24 July  in the 
fight against COVID-19. The government lifted the measure after the Progressive 
Labour  Union  of  Domestic  Workers  raised  concerns  regarding  discrimination. 
This was the second nationality-based round of testing in 2022, after a similar 
instruction targeted citizens from Myanmar in June. 

The US State Department included Macao in its ‘Tier 3’ human trafficking list, 
alleging  that  ‘for  the  third  consecutive  year  the  government  did  not  provide 
services to any victims nor did it initiate trafficking prosecutions.’11 

There has been no social dialogue with the LGBTIQ+ community and same-sex 
marriage is not recognised. As a result, members of the LGBTIQ+ community do 
not enjoy the same legal rights as other individuals, namely in the field of parental 
law  and  inheritance  law.  Transgender  people  are  not  allowed  to  modify  their 
gender on their ID cards. 

Health  practitioners  still  lacked  sufficient  information  about  the  needs  of 
LGBTIQ+  patients.  The  organisation  ‘Rainbow  of  Macau’  called  on  the 
government  to  put  in  place  specialised  health  services  and  allocate  medical 
personnel to provide the appropriate advice, diagnosis and treatment for gender 
dysphoria. 

II.  Economic developments 

In the first three quarters of 2022, Macao’s GDP dropped by 27.8% year-on-
year12  to MOP 130.3 billion (EUR 15.6 billion)13. This was 61% lower than in 
2019, (MOP 330 billion / EUR 39.6 billion), indicating how heavily Macao’s 
economy was affected by restrictions related to the pandemic. 

In October, the IMF forecast that Macao’s economy would contract by 22.4% in 
2022, compared to a growth rate of 15.5% forecast in April14. In 2021, Macao’s 
GDP increased by 18% (after contracting by 56.3% in 2020). 

Low numbers of tourist arrivals had a significant impact on the economy. In 
2022, 5.7 million tourists visited the city, fewer than 15% of the number in the 

11 https://www.state.gov/reports/2022-trafficking-in-persons-report/macau/ 
12 Source: Statistics and Census Service, Government of Macao Special Administration Region (SAR), available at: 
https://www.dsec.gov.mo/en-US/. 
13 Converted to euro using the December 2021 InforEuro exchange rate. 
14‘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. 

7 

 
 
 
 
 
 
 
 
 
 
 
same  period  in  2019  (39.4  million).  Exports  of  gaming  services15  formerly 
accounted for about half of Macao’s GDP. However, due to the fall in tourism, 
these exports accounted for only MOP 24.8 billion (EUR 3.0 billion) in the first 
three quarters of 2022 – a 54.5% drop year-on-year, or only 13.7% of their value 
for the same period in 2019 (MOP 181 billion / EUR 21.7 billion). The average 
hotel occupancy rate was only 38.5% during the year, compared to 50% in 2021 
and 91% in 2019.  

The labour market held up well in the difficult economic climate, with a 3.5% 
unemployment rate at the end of the year, compared to 1.7% before the pandemic. 

Inflation  remained  low,  with  an  average  composite  consumer  price  index 
increase of 1.0% 

The reduced level of economic activity resulted in lower fiscal revenues, while 
government  expenditure  increased.  The  government  had  to  draw  on  its  fiscal 
reserves  to  finance  spending.  Capital  reserves  decreased  to  MOP 563  billion 
(EUR 67.5 billion) as of November, a 12.2% decrease year-on-year. Nonetheless, 
they are still sufficient to cover an estimated six years of government expenditure 
at 2022 levels. 

the  stock  of  foreign 

investments  reached  MOP 334  billion 
In  2021, 
(EUR 40.0 billion),  compared  to  MOP 297  billion  (EUR 35.6  billion) in 2020. 
The  largest  source  of  investments  was  Hong  Kong  with  49%,  followed  by 
mainland China with 34% (excluding investments from offshore centres). 

Economic policy 

The Chief Executive’s annual policy address outlined the economic policies to be 
implemented in 2023. On the economic front, the priorities are to expedite the 
recovery, as well as to revive the tourism and gaming sectors, increase investment 
in infrastructure and housing, and continue the economic diversification strategy. 

In  line  with  China’s  14th  Five-Year  Plan  for  2021-2025,  the  Chief  Executive 
underscored  the  need  to  further  integrate  Macao  into  national  policies,  in 
particular,  the  policies  on  the  Hengqin  zone  and  the  Greater  Bay  Area.  He 
announced  the  acceleration  of  infrastructure  construction,  including  new 
development  areas,  railway  and  road  transportation  links,  housing,  recycling 
projects and water drainage works. 

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

8 

 
 
 
 
 
 
 
 
 
 
 
Supporting  the  economy,  which  had  been  affected  by  pandemic  restrictions, 
remained  a  key  priority.  The  government  extended  many  of  the  COVID-19 
financial  support  measures  for  households  and  companies  (including  tax 
reductions and various fee waivers for people and companies, rental concessions, 
and a subsidised training scheme). 

Residents continued to benefit from the wealth partaking scheme introduced in 
2008 to share the rewards of economic development with residents. Permanent 
residents  received  MOP 10 000  (EUR 1 199)  and  non-permanent  residents 
received MOP 6 000 (EUR 719). The Chief Executive announced in his policy 
address  that  residents  would  receive  the  same  amount  in  2023,  as  well  as  an 
exceptional  consumption  subsidy  of  MOP 10 000  for  an  additional  year.  The 
policy  address  also  introduced  a  temporary  employment  subsidy  scheme  for 
employers recruiting unemployed local residents. Migrant domestic workers are 
not included in the wealth partaking scheme. 

In  June  2022,  the  Legislative  Assembly  adopted  the  amended  Gaming  Law, 
thereby  tightening  the  rules  for  the  operation  of  casinos.  The  amended  law 
authorises the Chief Executive to terminate a casino concession contract on the 
grounds of threats to national security. It also sets new policy goals of preventing 
illegal  cross-border  flows  of  capital,  and  of  combating  money  laundering  in 
relation  to  gaming  activities,  thus  addressing  the  concerns  of  the  central 
government.  The  law  also  promotes  economic  diversification,  as  gaming 
operators  are  required  to  provide  investment  plans  that  aim  to  diversify  the 
economy.  The  amended  law  has  halved  the  term  of  casino  concessions  to  10 
years; capped the number of tables and electronic gaming machines; and banned 
sub-concessions.  Casino  concessionaires  must  undergo  a  performance  review 
every  three  years.  The  law  has  increased  gaming  tax  by  1%  (to  40%)  and 
introduced a minimum annual premium. The minimum share capital to be held 
by managing directors of casinos (who must be permanent residents of Macao) 
has been increased from 10 to 15%. 

The amended law tightened the rules on gaming promotion activities. Promoters 
can only provide  services  to one  casino  concessionaire, while revenue-sharing 
arrangements  between  promoters  and  casinos  are  no  longer  allowed.  The 
Legislative Assembly pursued a similar intention when it adopted the ‘Regime 
for the exploitation of games of chance’ in December. According to government 
estimates,  that  law,  also  referred  to  as  the  ‘Junket  Law’,  has  resulted  in  a 
significant drop of about 80% in junket activities. 

Gaming  concessions  expired  at  the  end  of  2022.  The  government  launched  a 
public tender to award the new concession contracts in line with the amended 
Gaming  Law.  The  new  concessions  started  in  January  2023  and  will  run  for 

9 

 
 
 
 
 
 
10 years.  The  six  incumbent  gaming  operators  retained  their  concessions.  A 
seventh bidder, a unit of the global gaming conglomerate Genting Malaysia, was 
unsuccessful  in  the  bidding  process.  Each  operator  was  required  to  present  an 
total  amount  of  MOP 120  billion 
investment  plan  for  an  estimated 
(EUR 14.4 billion), including the promotion of non-gaming activities, in line with 
the diversification strategy. 

The economic diversification strategy aims to develop industries such as non-
gaming  tourism,  conventions  and  exhibitions,  health  (including  traditional 
Chinese  medicine),  financial  services,  and  science  and  technology.  Despite  a 
decrease over recent years, the gaming sector still accounted for about half of the 
city’s  pre-COVID  GDP.  In  his  policy  address,  Chief  Executive  Ho  Iat  Seng 
committed to increasing the contribution of non-gaming sectors to 60% of GDP. 

On  financial  services,  the  authorities  aim  to  develop  a  local  bond  market 
(including  green  bonds  and  bond  listings  by  mainland  institutions  and 
companies),  wealth  management  and  financial  leasing  activities,  investment 
banking, and cross-border renminbi settlements. To achieve this, the government 
is  reforming  the  local  financial  system’s  legal  framework  and  developing 
Macao’s  financial  market  infrastructure.  The  Legislative  Assembly  adopted  a 
new trust law to provide public and financial institutions with property transfer 
models, estate planning and diversified financial and insurance solutions. As of 
December 2022, 13 debt securities had been issued on Macao’s central securities 
depository, largely by mainland Chinese banks and government entities. 

Since  its  launch  in  2018,  total  bond  listings  on  Chongwa  (Macao)  Financial 
Assets Transaction, S.A. (MOX) – Macao’s platform for bond listing and trading 
–  amounted  to  MOP 350  billion  (EUR 41.9  billion),  according  to 
its 
representatives.  In  March  2022,  MOX  and  the  Luxembourg  Stock  Exchange 
signed  a  cooperation  agreement,  following  a  Memorandum  of  Understanding 
signed  in  January  2020.  It  focuses  on  making  securities  listed  on  MOX  more 
visible to international investors. 

Economic integration within mainland China 

As  most  pandemic  restrictions  had  been  lifted  by  the  end  of  the  year,  Macao 
aimed to regain its position as a centre for tourism and leisure and to develop into 
a hub for business and financial services, notably between mainland China and 
Portuguese-speaking countries. 

In  September  2022,  Macao  and  Guangdong  province  agreed  to  strengthen 
cooperation  on  supervising  medical  devices,  social  security  and  government 
services, education and innovation. 

10 

 
 
 
 
 
 
 
 
The Guangdong-Macao In-Depth Cooperation Zone is a territory of about 100 
square kilometres located in Hengqin in mainland China, and jointly administered 
by  Guangdong  and  Macao16.  Its  purpose  is  to  enable  Macao’s  economic 
diversification  and  to  deepen  economic  and  legal  integration  within  mainland 
China, in line with the priorities of China’s 14th Five-Year Plan outlined above. 

Macao’s  integration  with  mainland  China  received  a  significant  boost  in 
December when the central government announced that non-commercial vehicles 
from Macao would be allowed to enter Guangdong province from 1 January 2023 
under the Northbound Travel for Macao Vehicles policy. 

III.  Relations between Macao and mainland China 

Following the 20th Party Congress of the Communist Party of China in October, 
Chief Executive Ho Iat Seng asked different sectors of the local society to study 
‘the spirit of the 20th National Congress’17. 

Chief Executive Ho met President Xi Jinping on two occasions in 2022:  in the 
margins of the celebrations of the 25th anniversary of the handover of Hong Kong 
to China, and on the occasion of a duty visit to Beijing. 

Significant  personnel  changes  took  place  in  2022.  In  March,  the  central 
government appointed Fu Ziying, the former director of the Liaison Office of the 
Central  People’s  Government,  as  the  National  Security  Affairs  Adviser  to  the 
Committee for Safeguarding National Security in Macao. In May, the former vice 
governor  of  Fujian  province  and  deputy  director  of  the  Liaison  Office,  Zheng 
Xincong was appointed Head of the Liaison Office and National Security Affairs 
Adviser. 

IV.  EU-Macao bilateral relations and cooperation in 2022 

The 1992 Agreement for Trade and Cooperation between the European Economic 
Community and Macao aimed to further strengthen the relationship between the 
EU and Macao. It covers cooperation with respect to trade, the economy, science 
and technology. 

16 The Hengqin cooperation zone is located at the southern edge of the mainland Chinese city of Zhuhai. Only a 
strip of water separates the zone from Macao, and a bridge links the two together. 
17 https://macaudailytimes.com.mo/ho-iat-seng-to-fully-implement-spirit-of-national-congress-report.html 

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The EU-Macao Joint Committee is a platform for dialogue between Macao and 
the EU in a number of areas. The 23rd Joint Committee meeting was held in 
2019, but no further meetings have taken place, despite EU requests. 

In the first 11 months of 2022, the EU overtook mainland China to become 
Macao’s largest trading partner in goods, accounting for 30% of the SAR’s 
total trade in that period. EU-Macao bilateral trade is almost exclusively (more 
than 95%) composed of exports to the EU, with around 33% of Macao’s imports 
originating in the EU. 

Based on Eurostat data, EU bilateral trade in goods with Macao in the first 11 
months of 2022 amounted to EUR 1 147 million (less than a 1% increase over 
2021). EU  exports to  Macao, which  consisted mostly of luxury goods, leather 
articles,  clothing  and  apparel,  and  watches  and  jewellery,  amounted  to 
EUR 1 100 million, and resulted in a trade surplus of EUR 1 053 million. 

The  EU  remained  Macao’s  fourth-largest  source  of  foreign  investment  in 
2021 (excluding offshore centres), after Hong Kong, mainland China and the US. 
According to Macao’s official statistics, the EU accounted for 5.8% of the total 
foreign  direct  investment  (FDI)  stock  in  2021  (excluding  offshore  centres). 
Portugal alone accounted for 88% of EU investment in the SAR. According to 
Eurostat, EU FDI stocks in Macao accounted for EUR 1.42 billion as of the end 
of 202118, while Macao FDI stocks in the EU amounted to EUR 1.85 billion. 

18 https://ec.europa.eu/eurostat/databrowser/view/BOP_FDI6_GEO__custom_6643309/default/table?lang=en 

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