JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Macao Special Administrative Region Annual Report for 2024
Date: 2025-09-08
Institutions: European Commission, European External Action Service
Subjects: Macao, activity report, bilateral relations, economic cooperation, economic development, economic situation, fundamental rights, political situation, regional integration, social development

EN 

  EN 

   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 8.9.2025  JOIN(2025) 18 final  JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Macao Special Administrative Region    Annual Report for 2024  
 
 
JOINT REPORT TO THE EUROPEAN PARLIAMENT AND THE COUNCIL 

MACAO SPECIAL ADMINISTRATIVE REGION: 

ANNUAL REPORT FOR 2024 

Summary 

Since the handover of Macao to the People’s Republic of China (PRC) 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, in accordance with 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. 

In line with the commitment given to the European Parliament in 1999, the Commission and 
the  High  Representative/Vice-President  issue  an  annual  report  on  developments  in  Macao. 
Over the years, this has included a particular focus on the implementation of the ‘one country, 
two systems’ principle and on Macao’s autonomy as stated in the Macao Basic Law. 

This  is  the  25th  report,  covering  2024.  Politically,  the  year  saw  a  continued  erosion  of 
autonomy and fundamental freedoms and rights  that are meant to be protected until at least 
2049. The year was marked by: (i) two legislative amendments to implement the doctrine of 
‘patriots ruling Macao,’ further limiting the space for pluralist voices in Macao, and  (ii) the 
formation  of  the  sixth-term  Government  of  the  SAR  headed  by  Sam  Hou  Fai,  the  first 
mainland-born Chief Executive. 

Macao’s GDP grew by 8.8% in 2024. This was the second consecutive year of growth but the 
economy has yet to  fully recover to pre-COVID-19 pandemic levels. The economic growth 
was supported by increases in the numbers of tourists travelling to Macao and related gaming 
revenues. In 2024, 34.9 million people visited Macao, a 24% increase year-on-year but less 
than the 39.4 million visitors in 2019. Visitors largely come from mainland China and Hong 
Kong. 

The EU was Macao’s second largest trading partner in goods during the year, accounting for 
26.6% of Macao’s total trade and with a trade surplus in favour of the EU. The EU was the 
SAR’s fourth largest source of foreign direct investment (2023, latest available). 

I. 

Political and social developments 

The year marked the 25th anniversary of the handover of Macao from Portugal to the People’s 
Republic of China. The Sino-Portuguese Joint Declaration signed in 1987 stipulates that the 
social and economic system as well as the way of life of Macao should remain unchanged for 
at  least  50  years  under  the  principle  of  ‘one  country,  two  systems’.  The  Declaration  also 
features the principle of ‘Macao people rule Macao’ and that Macao would enjoy a ‘high degree 
of autonomy’ as a SAR. 

Legislative amendments implementing the ‘patriots ruling Macao’ doctrine 

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Macao adopted new legislation to implement the political doctrine of ‘patriots ruling Macao’, 
namely  the  ‘Amendment  to  the  Electoral  Law  for  the  Legislative  Assembly  of  the  Macao 
Special  Administrative  Region’  and  ‘Amendment  to  Law  No 4/1999  –  Law  on  oaths  upon 
taking office’. The new legislation further limits the space for pluralistic voices in both politics 
and society. 

The amended electoral law, adopted on 11 April, introduced  additional vetting mechanisms 
into the elections of the Legislative Assembly. Macao’s National Security Committee can now 
issue ‘legally binding opinions’ to the Electoral Affairs Commission determining if candidates 
uphold the Basic Law and pledge allegiance to the Macao SAR. The decision is not subject to 
judicial appeal. 

The National Security Committee was set up in 2018 under the National Security Law. The 
Chief Executive serves as its chair, with the Director of Beijing’s Liaison Office in Macao as 
the National Security Affairs Adviser and two other members of the Liaison Office as National 
Security  Technical  Advisers.  The  new  arrangement  gives  the  Central  Government  direct 
influence over elections of Macao’s local legislature. 

The bill on the Legislative Assembly electoral system sets out seven criteria for the National 
Security Committee to consider when examining a candidate’s eligibility to stand for election. 
A candidate found not to be upholding the Macao Basic Law or not pledging allegiance to the 
Macao SAR of the PRC will be banned from standing for election for five years. Inciting others 
not  to  vote,  casting  blank  votes  and  spoiling  one’s  vote  have  become  offences  under  this 
amendment, subject to a maximum punishment of three years in prison. 

Meanwhile, the ‘Amendment to Law No 4/1999 – Law on oaths upon taking office’, adopted 
on  21  May,  requires  members  of  the  Chief  Executive  Election  Committee  to  take  an  oath, 
pledging allegiance to the Macao Basic Law and the Macao SAR. Meanwhile, it also stated 
that the oath-taking had to be ‘sincere’ and ‘solemn’. 

In  September,  the  Education  and  Youth  Bureau  put  teaching  materials  on  national  security 
education into use, covering all education levels from preschool to higher education. 

Formation of the sixth-term SAR government 

In  2023,  the  Legislative  Assembly  adopted  the  ‘Amendment  to  Law  No 3/2004  ‒  Electoral 
Law  for  the  Chief  Executive’  which  introduced,  among  other  measures,  a  national  security 
vetting  procedure  for  candidates  aimed  at  ensuring  ‘patriots  ruling  Macao.’  Under  the  new 
rules, former President of the Court of Final Appeal Sam Hou Fai, who was the sole candidate, 
secured 394 votes from the 400-strong Election Committee on 13 October. Sam became the 
first mainland-born leader of the SAR1, raising questions about the continued validity of the 
‘Macao people ruling Macao’ principle. 

The electoral process of the Chief Executive election started with the formation of a 400-strong 
Election  Committee,  of  which  344  were  elected  indirectly  by  representatives  of  qualified 
businesses and social groups. Only 6 265 people out of a population of around 686 600 were 
eligible to cast their votes. In 2024, only two sub-sectors received more applications than seats 

1 Sam  was  born  in  1962  in  Zhongshan,  People’s  Republic  of  China.  He  moved  to  Macao  in  1986.  He  was 
appointed as President of the Court of Final Appeal in 1999, a position he held until December 2024. 

2 

 
 
 
 
 
 
 
 
 
 
 
available. In the education subsector, there were 29 seats and 31 candidates, while in the labour 
subsector, there were 61 candidates for 59 seats. All candidates had to undergo a vetting process 
under the new electoral law. 

On  11  August,  the  election  for  the  Chief  Executive  Election  Committee  took  place,  with  a 
turnout rate of 88%, similar to the 87.2% rate in 2019. Notably, in addition to the 5 347 valid 
votes, 18 were blank votes and 156 more were deemed invalid; one of the votes had ‘democracy 
is dead’ written on it. 

On 21 August, the then incumbent Chief Executive Ho Iat Seng announced his decision not to 
seek re-election, citing health reasons. Ho became the first Macao leader not to seek re-election 
after the expiry of his first five-year term. 

On 28 August, Sam Huo Fai, who had resigned from his post as President of the Court of Final 
Appeal on 26 August, announced his  intention to  run  for Macao’s highest  office. Although 
Sam was born in the neighbouring mainland city of Zhongshan, he highlighted his connection 
with Macao, where he has lived for almost 40 years. 

On 29 August, the 15-day nomination period started. While 11 people requested nomination 
forms to run in the Chief Executive election, only Sam passed the threshold of 66 nominations. 
On 12 September, Sam obtained 386 nominations, cementing his role as the sole candidate in 
the election2. On 18 September, the Electoral Affairs Commission confirmed that Sam passed 
national security vetting. 

On  13  October,  Sam  secured  394  of  400  votes,  the  highest  rate  among  past  Macao  Chief 
Executive elections. 

On 25 October, the State Council in Beijing decided to appoint Sam as the sixth-term Chief 
Executive of the Macao SAR. Between 31 October and 2 November, Sam visited Beijing to 
receive his appointment from the Central Government. On 1 November, he met with Chinese 
President Xi Jinping and Premier Li Qiang. 

On  30  November,  following  the  nomination  from  the  then-Chief  Executive-designate,  the 
Central Government appointed principal government officials. Among the top five Secretaries, 
two had served in the previous administration, namely the Secretary for Administration and 
Justice and the Secretary for Security. 

On 13 December, the Chief Executive-designate announced the composition of his Executive 
Council, including a Macanese person with Portuguese heritage. 

On  20  December,  Chinese  President  Xi  Jinping  visited  Macao  to  swear  in  the  new  Chief 
Executive and principal officials of the SAR, back-to-back with celebrations to mark the 25th 
anniversary of the handover of Macao from Portugal to the People’s Republic of China. The 
EU Head of Office, along with other EU Heads of Mission/ Consuls-General, was invited and 
attended this function. President Xi underlined the advantages of ‘one country, two systems’, 
the  need  for  diversification  of  the  economy,  development  of  the  Guangdong-Hong  Kong-
Macao Greater Bay Area (and the importance of the special economic district Hengqin) and 

2 There has been only one candidate for the Chief Executive election, except the first one in 1999. 

3 

 
 
 
 
 
 
 
 
 
 
 
 
emphasised Macao’s unique role in advancing cooperation and exchanges between China and 
Portuguese-speaking countries and in the Belt and Road Initiative. 

On 24 December, the newly sworn-in Chief Executive led a delegation of three officials for a 
same-day visit to Guangzhou to meet Guangdong provincial leaders, with the stated goal of 
strengthening cooperation between Macao and the neighbouring mainland province. 

Rights, freedoms and equal opportunities 

The meeting of the Universal Periodic Review Working Group of the United National Human 
Rights Council with regard to China, covering Macao, took place on 23 January. Ahead of the 
meeting, the USA and Russia made submissions related to Macao, inquiring about Macao’s 
adoption of recommendations by UN mechanisms since the last UPR. 

On  31  May,  the  Human  Rights  Council  published  China’s  views  on  conclusions  and 
recommendations. While three countries made three human rights recommendations related to 
Macao, China accepted one from Eritrea that called for continuing to ‘promote and safeguard 
the rights’ of Macao residents in accordance with all relevant local laws. Beijing stated that the 
recommendation from Burundi about providing assistance to Macao to ‘take more effective 
measures for the well-being of residents in the areas of housing, employment and health’ is 
‘accepted and being implemented’. China ‘rejected’ the recommendation from the US to ‘end 
repressive measures against women, LGBTIQ+ persons, labourers and migrant workers,’ citing 
this as ‘based on false information.’ 

On 5 August, the Legal Affairs Bureau called on ‘all sectors of society and social organisations’ 
to submit contributions as China prepared for the UN reporting process for the International 
Convention on the Elimination of All Forms of Racial Discrimination. The review will cover 
the period between 1 January 2017 and 31 December 2023. Local media noted that this is likely 
to be the first time the government has asked Macao society to contribute to any international 
treaty review process. 

Regarding labour rights, the Legislative Assembly passed the government-proposed Trade 
Union Law on 12 April3. It is possible to submit applications to register unions under the law 
from 1 January 2025. Two lawmakers, who abstained in the vote, argued that the bill had failed 
to protect the rights of collective bargaining and did not fully reflect the rights as enshrined in 
Article 27 of Macao Basic Law4. 

The Trade Union Law stipulates that groups seeking to participate in organisations outside of 
Macao have to receive approval from its members and the Chief Executive. The law also bars 
members  of  a  foreign  legislature  or  a  foreign  government  or  individuals  that  have  been 
sentenced  to  prison  terms  of  over  three  years  for  national  security  offences  from  taking  up 
leadership positions in trade unions5. 

3 Since the handover in 1999, the legislature voted down a lawmaker-proposed motion for a Trade Union Law a 
total of 12 times. 
4 Article 27 of the Macao Basic Law states that Macao residents shall have freedom of speech, of the press and of 
publication; freedom of association, of assembly, of procession and of demonstration; and the right and freedom 
to form and join trade unions, and to strike. 
5 Those convicted of relevant national security offences could have their right to assume such positions reinstated 
in accordance with the relevant provisions in the National Security Law. 

4 

 
 
 
 
 
 
 
 
 
 
 
Freedom of assembly continued to be under pressure. There was no public commemoration 
of the 35th anniversary of the Tiananmen crackdown in 1989, the fourth year in a row of no 
such  commemoration.  Meanwhile,  one  of  the  former  organisers  of  the  vigil,  a  former  pro-
democracy lawmaker, revealed on 29 June that Macao weekly Jornal Son Pou discontinued his 
column due to ‘special political reasons.’ 

Press freedom and freedom of expression remained under strain. On 7 November, the Macao 
Journalists Association issued a statement, calling on the government to withdraw unnecessary 
reporting  restrictions.  The  statement  pointed  out  that  the  government  had  ‘precluded  the 
reporting  rights  of  a  host  of  media  outlets’  by  limiting  invitations  to  selected  media.  The 
Association  also  reported  that  media  outlets  were  ‘asked  to  withdraw  their  articles  due  to 
political pressure in several recent cases.’ 

The authorities continued to use immigration rules to bar individuals considered unfavourable 
from entering the territory. On 15 June, the Macao authorities denied the entry of a journalism 
educator  invited  by  the  Macao  Journalists  Association  from  entering  the  SAR  for  ‘public 
security reasons.’ 

Space for advocacy to advance the rights of LGBTIQ+ people remained limited. On 22 
January,  the  Cultural  Affairs  Bureau  shut  down  an  interactive  performance  featuring  drag 
queens at the 22nd Fringe Festival. Three days later, the Bureau explained that the decision to 
cancel the show was due to inconsistencies between the actual performance and the information 
received.  The  same  show  was  performed  as  part  of  a  theatre  festival  in  the  neighbouring 
mainland city of Shenzhen. 

Two  civil  society  groups  managed  to  organise  community  activities  during  Pride  Month  in 
June. 

On  7  July,  a  local  research  report  revealed  that  members  of  the  LGBTIQ+  community 
experienced discrimination when seeking medical help. 

II. 

Economic developments 

The GDP of Macao increased by 8.8% year-on-year in 2024, to MOP 384.1 billion (EUR 45.4 
billion). This followed  GDP growth of 75.1% in 2023, supported by the lifting of the strict 
COVID-19 pandemic restrictions and a recovery in tourism and gaming revenue. However, 
Macao’s  economy  had  not  yet  fully  recovered  to  pre-pandemic  levels  in  2024  and  GDP 
(chained) was still 13.6% lower than in 2019. 

In May 2024, the International Monetary Fund (IMF) released its Article IV Consultation 
report for Macao6. The IMF’s outlook for Macao was GDP growth of 13.9% in 2024, 9.6% in 
2025, 4.4% in 2026 and 3% for the following three years. Risks to growth include lower-than-
expected growth in mainland China, higher-for-longer interest rates in major economies and 
an increase in extreme climate events. On the other hand, integration with the Greater Bay Area 
and successful economic diversification would support the economy, according to the IMF. 

6 International Monetary Fund, People’s Republic of China – Macao Special Administrative Region 2024 Article 
IV Consultation Discussions, Staff Report (May 2024): 
https://www.imf.org/en/Publications/CR/Issues/2024/05/29/Peoples-Republic-of-China-Macao-Special-
Administrative-Region-2024-Article-IV-Consultation-549654. 

5 

 
 
 
 
 
 
 
 
 
 
 
 
The economic growth in 2024 was supported by an  increase in the number of tourists. A 
total of 34.9 million people visited Macao during the year, with 70.1% coming from mainland 
China and 20.6% from Hong Kong. This is an increase of 23.8% year-on-year, but still 11.4% 
below 2019 levels (pre-COVID-19 pandemic) when 39.4 million people visited Macao. The 
average hotel occupancy rate was 86.5% in 2024, below 90.8% in 2019 but up from 81.2% in 
2023 and 38.5% in 2022. 

Gaming and related industries are the largest contributors to Macao’s economy, due in large 
part to tourists. In 2024, gaming revenues continued to recover and reached MOP 227.4 billion 
(EUR 26.9 billion), a 23.8% increase year-on-year. However, they were still 22.5% lower than 
the MOP 293.3 billion (EUR 34.7 billion) generated before the pandemic (2019). 

The unemployment rate decreased to 1.8% in 2024, from 2.7% in 2023 and 3.7% in 2022, 
and was back to pre-pandemic levels (1.7% in 2019). 

Inflation  remained  low  during  the  year,  with  an  average  composite  consumer  price  index 
increase of 0.7%. 

In  2024,  the  government  recorded  a  fiscal  surplus  of  MOP 31.0  billion  (EUR 3.7  billion), 
having  recorded  a  surplus  of  MOP 29.0  billion  (EUR 3.4  billion)  in  2023.  Fiscal  reserves 
amounted to MOP 616 billion (EUR 72.9 billion) at the end of December, an increase of 6.2% 
year-on-year and of 6.4% from before the pandemic (MOP 579 billion). Reserves are sufficient 
to cover 6.5 years of government expenditure. 

In  2023  (Macao  statistics,  latest  available),  the  stock  of  foreign  direct  investment  (FDI)  in 
Macao reached MOP 383 billion (EUR 45.3 billion), a 4.2% increase year-on-year. Hong Kong 
and mainland China were the largest sources of FDI. 

Economic policy 

Chief  Executive  Sam  Hou  Fai  announced  the  new  administration’s  economic  priorities, 
namely  advancing  Macao’s  economic  diversification,  improving  people’s  well-being 
(including  social  security,  healthcare,  elderly  care  and  urban  redevelopment),  continuing  to 
develop Macao as a connector between mainland China and Portuguese-speaking countries, 
further  integrating  with  mainland  China  and  participating  in  mainland  China’s  economic 
development and improving governance. 

In  the  gaming  sector,  casino  concessionaires  are  required  to  invest  in  non-gaming-related 
activities,  with  the  purpose  of  supporting  Macao’s  economic  diversification.  Regulatory 
changes were conducted during the year in relation to gaming. In April, a new legal regime 
(Law No 7/2024)7 for granting credits for games of chance in casinos was adopted. It grants 
exclusive authority to casino concessionaires to extend credit directly to patrons. This results 
in the role and influence of gaming promoters being limited. These promotors had previously 
played  an  important  role  in  engaging  high-roller  gamers  and  provided  them  with  credits. 
Gaming  promoters  can  now  solely  act  as  agents  for  concessionaires.  In  October,  Law 
No 20/20248 was introduced to combat illegal gambling crimes, increase fines and penalties 

7

 Official 

bulletin,  Government 

of 
https://bo.io.gov.mo/bo/i/2024/17/lei07.asp. 
8 Official bulletin, Government of the Macao Special Administrative Region (MSAR) 
https://bo.io.gov.mo/bo/i/2024/44/lei20.asp 

the  Macao  Special  Administrative  Region 

(MSAR) 

6 

 
 
 
 
 
 
 
 
 
 
 
for  gaming-related  offences  and  criminalise  illegal  loans  and  currency  exchanges  linked  to 
gambling as well as the unauthorised operation of online gaming. 

Macao’s  economic  diversification  strategy  continued,  with  the  aim  of  developing  the  so-
called  ‘1 + 4’  industries.  ‘1’ stands for tourism and leisure and the  ‘4’ other industries are: 
healthcare with a focus on traditional Chinese medicine; financial services; new technologies; 
and convention and exhibition, trade, culture and sports. A main objective is to diversify the 
local  economy  by  increasing  the  contribution  of  non-gaming  industries  to  60%  of  GDP. 
According  to  the  IMF  (Article  IV  report,  May  2024),  the  dominance  of  the  gaming  sector 
generates vulnerabilities and underscores the need for economic diversification, including by 
improving efficiency and resource allocation, incentivising  R&D and innovation, upskilling 
and reskilling the labour force and streamlining labour and business regulations. The IMF also 
called  for  the  consideration  of  potential  negative  spillover  effects,  trade  distortions,  and 
governance risks that could result from diversification policies. 

According to the industry, the lack of a diversified talent pool in Macao remains an obstacle 
to economic diversification. Only 470 individuals were added to the talent lists in 2024 under 
three recently launched talent recruitment programmes. 

Initiatives to support new technologies and innovation include tax incentives, R&D funding 
and cooperation with Hengqin and the Greater Bay Area9. 33 enterprises have been certified 
under  Macao’s  Technology  Enterprises  Certification  Programme  (as  of  October  2024), 
employing 1 300 people according to government sources. In March, a new regime for data 
centre installation and operation was adopted10. 

With regard to conventions and exhibitions, 1 011 MICE (‘meetings, incentives, conferences, 
and exhibitions’) events were held in Macao in the first three quarters of 2024 (an increase of 
29.8% year-on-year and roughly recovering to the 2019 level). 

Concerning health, Macao Union Hospital commenced operation in September, supporting the 
development  of  medical,  wellness  and  healthcare  tourism  to  Macao.  Promotion  of  Chinese 
medicine includes the Traditional Chinese Medicine Science and Technology Industrial Park 
of Cooperation Between Guangdong and Macao, in Hengqin. According to the government, 
24  traditional  Chinese  medicine  products  were  registered/recorded  in  Portuguese-speaking 
countries as of 2024. 

Regarding 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  settlement 
schemes. Work to revise the financial sector regulatory framework continued during the year. 
In  July,  the  Insurance  Intermediary  Activities  Law  was  passed  (takes  effect  from  1 August 
2025), amending the licensing system, operational standards and oversight framework in the 
insurance industry. In November, a new Investment Fund Law was submitted to the Legislative 
Assembly to modernise the regulatory regime for funds and promote the funds management 
industry. The government also continued to explore the development of a digital Macao Pataca 

9 Review of the Government’s Work in the Fiscal Year 2024, Government of the Macao Special Administrative 
Region (MSAR), November 2024 
https://www.gov.mo/en/wp-content/uploads/sites/2/2024/12/2024Review.pdf 
10 Official 
https://bo.io.gov.mo/bo/i/2024/13/regadm13.asp. 

the  Macao  Special  Administrative  Region 

bulletin,  Government 

(MSAR) 

of 

7 

 
 
 
 
 
 
 
 
 
(e-MOP).  As  of  September  2024,  the  value  of  outstanding  bonds  issued or  listed  in  Macao 
reached  MOP 740  billion  (EUR 87.5  billion)  and  a  total  of  102  financial  institutions  were 
licenced to operate in Macao. 

According to the IMF (Article IV report, May 2024), initiatives to modernise and strengthen 
the  financial  system  should  go  hand-in-hand  with  efforts  to  manage  related  risks.  The  IMF 
called  for  policies  to  strengthen  the  soundness  of  the  financial  system  and  manage  risks 
(including  higher  provisioning  of  banks,  collecting  more  granular  data  on  non-performing 
loans  and  interbank  credit,  improving  the  insolvency,  debt  resolution  and  restructuring 
frameworks, monitoring mainland China borrowers risks, the liquidity position of banks with 
large  foreign  liabilities  and  the  non-bank  financial  sector).  The  IMF  noted  that  Macao  has 
ample fiscal space and called for a slower pace of fiscal consolidation. It identified the main 
priorities  for  fiscal  policy  to  include  higher  spending  on  human  and  physical  capital, 
developing the non-gaming sector, enhancing growth sustainability and external rebalancing. 

In  terms  of  environmental  policies,  the  number  of  electric  vehicles  in  Macao  increased  to 
10 978 by September (from 1 339 in 2020), an extension of Macao’s central waste incineration 
centre  was  completed  and  work  was  conducted  to  reduce  flooding.  The  2024  Macao 
International Environmental Cooperation Forum & Exhibition (MIECF) was held in March. 

The government continued to distribute financial support to residents, including cash benefits 
under  the  Wealth  Partaking  Scheme,  healthcare  vouchers,  electricity  bills  and  tuition  fee 
subsidies and old age and disability allowances. 

Infrastructure works were conducted during the year, including transport infrastructures, the 
ongoing expansion of the Macao International Airport and housing, government and education 
facilities. 

Economic integration with mainland China 

Macao  is  positioning  itself  as  a  platform  and  a  connector  between  mainland  China  and 
Portuguese-speaking  countries  (including  for  tourism,  business  and  financial  services).  In 
April,  the  sixth  Ministerial  Conference  of  the  Forum  for  Economic  and  Trade  Cooperation 
between China and Portuguese-speaking Countries was held in Macao (a  ‘strategic plan for 
economic  and  trade  cooperation  (2024-2027)’  was  signed).  The  China-Portuguese-speaking 
Countries Technology Centre was opened during the year. 

Macao’s economy has considerable exposure to mainland China visitors travelling to the SAR 
for  tourism  and  gaming.  Mainland  China  is  also  Macao’s  largest  trading  partner  in  goods, 
accounting for 28.3% of the total in 2024, and was its second largest source of foreign direct 
investment in 2023 (latest available). 

Macao  is  pursuing  further  economic  integration  with  the  mainland,  including  through  the 
Guangdong-Hong  Kong-Macao  Greater  Bay  Area  and  the  Guangdong-Macao  Intensive 
Cooperation Zone in Hengqin. 

The  Guangdong-Macao  Intensive  Cooperation  Zone  in  Hengqin  comprises  about  100 
square  kilometres  (about  three  time  the  size  of  Macao)  adjacent  to  Macao  in  Guandong 
province in mainland China and is jointly administered by Guangdong and Macao. It provides 
additional land for pursuing Macao’s economic diversification and economic integration with 

8 

 
 
 
 
 
 
 
 
 
 
 
mainland  China.  Industries  developed  in  the  zone  include  innovation  and  technologies, 
healthcare and traditional Chinese medicine, financial services and MICE. According to  the 
Macao government, Hengqin GDP amounted to CNY 37.3 billion (EUR 4.9 billion) and there 
was 16 539 Macao residents living in Hengqin and 6 461 Macao enterprises set up in the zone 
(as of September 2024). 

In March, a new customs arrangement entered into force, whereby goods entering  Hengqin 
Cooperation  Zone  from  Macao  are  exempted  from  mainland  Chinese  tax 11.  This  provides 
preferential access to Hengqin for goods from the SAR (mainland China taxes would apply if 
the  goods  later  exit  Hengqin  to  enter  other  parts  of  mainland  China).  In  December  a 
Memorandum  of  Understanding  was  signed  for  the  construction  by  Macao  International 
Airport of an air cargo facility in Hengqin. Initiatives to further facilitate integration included 
encouraging  the  flows  of  people,  streamlining  customs  clearance,  facilitating  electronic 
payment and dual-currency payment in Hengqin and supporting Macao residents to live and 
work in Hengqin (e.g. a residential project (2023) and a school for Macao children (2024) were 
opened in Hengqin and Macao healthcare vouchers have been extended to the zone). 

The Cross-boundary Wealth Management Connect Scheme in the Guangdong-Hong Kong-
Macao Greater Bay Area (launched in 2021 to allow eligible mainland Chinese, Hong Kong 
and Macao residents  to  invest  in  wealth management products  distributed by banks in  each 
other’s market) was amended during the year. Changes include refining the eligibility criteria 
for mainland investors, expanding  the scope of participating  institutions (to include eligible 
securities firms) and eligible products, increasing the individual investor quota and improving 
the promotion and sales arrangements. 

In  October,  the  second  agreement  on  amendments  to  the  Mainland  and  Macao  Closer 
Economic  Partnership  Arrangement  on  Trade  in  Services  was  signed.  The  agreement 
introduces  additional  liberalisation  measures  across  several  services  sectors  and  aims  to 
facilitate Macao service providers in establishing a presence and doing business in the mainland 
and the acquiring of professional qualifications to practices in the mainland. The agreement 
also relaxes the rules for foreign companies, including European Union companies, in Macao 
to qualify as service providers and benefit from CEPA. 

III.  Relations between Macao and mainland China 

Chinese  President  Xi  Jinping  visited  Macao  between  18  and  20  December  for  the  25th 
anniversary of  the handover.  It  was his  first  visit to  Macao  since 2019.  Xi Jinping held  the 
inaugural  ceremony  for the sixth-term  government  of  Macao  and swore in Chief Executive 
Sam Hou Fai. 

On 20 December, Xi outlined four priorities for the new administration: working on appropriate 
and diversified economic development; improving governance ability; expanding international 
networks; and promoting social harmony and stability, including safeguarding national security. 

In  addition,  Xi  stated  that  projects  in  the  Hengqin  cooperation  zone  in  Zhuhai  must  not  be 
inconsistent with Beijing’s policy goals. Xi highlighted that ‘the Central Government decided 

11 Press release by the Government of Macao Special Administrative Region 
https://www.gov.mo/en/news/321684/. 

9 

 
 
 
 
 
 
 
 
 
 
to develop Hengqin in order to promote the appropriately diversified development of Macao’s 
economy and bring convenience to the life and employment of Macao residents.’ 

Prior to Xi’s visit and the anniversary, at least two Macao people residing abroad told the media 
that they were approached by mainland security officials via text messages. An activist from 
Macao now residing in the UK revealed that he had been urged ‘not to publish inharmonious 
voices on media outlets and social media platforms.’ A pro-democracy journalist now residing 
in Taiwan received a similar warning. 

On 18 July, the Third Plenum of the 20th Central Committee of the Communist Party of China 
(CPC) which outlined the direction for economic development concluded. The ‘pursuing high-
standard opening up’ section of the decision of the Third Plenum noted that ‘harnessing the 
institutional strengths of the one country, two systems policy … we (the Party) will support 
Hong Kong and Macao in building themselves into international hubs for high-calibre talent, 
and  improve  relevant  mechanisms  to  see  the  two  regions  playing  a  greater  role  in  China’s 
opening to the outside world. We will encourage cooperation between Guangdong, Hong Kong, 
and Macao in the Greater Bay Area by promoting closer alignment of rules and mechanisms.’ 

At  the  request  of  the  Macao  government,  Vice-Chairperson  of  the  Constitution  and  Law 
Committee  of  the  National  People’s  Congress  Shen  Chunyao  and  Secretary  of  the  CPC 
Leadership Group of the Ministry of Commerce and the Minister of Commerce Wang Wentao 
visited Macao between 27 and 28 August to explain the implications for the SAR of the Third 
Plenum’s  decision.  Both  officials  held  closed-door  sessions  with  around  380  central 
government officials and leaders of state-owned enterprises based in the city. Another session 
with  around  500  representatives  from  business,  professional,  education,  media  and  youth 
sectors took place. 

The Director of the Hong Kong and Macao Affairs Work Office Xia Baolong visited Macao 
between 13 and 19 May. During the seven-day visit, Xia attended more than 40 meetings and 
events.  The  audiences  included  government  officials,  members  of  the  judiciary  and  the 
legislature, local members of the National People’s Congress and the Chinese People’s Political 
Consultative Conference. Xia focused on the medical, technology, education and youth sectors. 

15 April marked the National Security Education Day and the 10th anniversary of the ‘A 
Holistic  Approach  to  National  Security’  concept,  as  proposed  by  President  Xi  Jinping.  The 
Director of the Central Government’s Liaison Office in Macao Zheng Xincong reiterated that 
in regard to safeguarding national security, ‘there is only the responsibility of ‘one country’ 
and not the differences of ‘two systems.’’ 

On 25 December, members of the sixth-term Macao Special Administrative Region Basic Law 
Committee of the National  People’s Congress  Standing Committee  were appointed. Led by 
Director  Shen  Chunyao,  the  10-member  committee,  consisting  of  5  members  from  the 
mainland and 5 from Macao, will serve a five-year term. 

IV.  Macao bilateral relations and cooperation in 2024 

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.  The 
agreement covers trading, economic, scientific and technological cooperation. 

10 

 
 
 
 
 
 
 
 
 
 
 
The  EU-Macao  Joint  Committee  is  a  platform  through  which  Macao  and  the  EU  discuss 
matters in a number of areas. The last Joint Committee meeting took place in 2019. 

The  European  Union  Office  organised  a  celebration  marking  Europe  Day  in  2024,  the  first 
since the lifting of COVID-19-related travel restrictions.  The current  Head of Office of the 
European Union Office to Hong Kong and Macao took up his position in September 2024 and 
met with Macao’s officials (including the Chief Executive) and stakeholders from business and 
civil society. 

In 2024, the EU was Macao’s second largest trading partner in goods, accounting for 26.6% 
of Macao’s total trade (vs 28.3% for mainland China, Macao’s largest trading partner). 

Based  on  Eurostat  data,  EU  bilateral  trade  in  goods  with  Macao  in  2024  amounted  to 
EUR 1 037 million and consisted mostly of EU exports to Macao (EUR 954 million). The EU’s 
main exports to  Macao included clothing  and apparel,  jewellery, leather articles and luxury 
goods. 

The  EU  was  Macao’s  fourth  largest  source  of  foreign  direct  investment  (FDI)  in  2023 
(excluding  offshore  centres),  after  Hong  Kong,  mainland  China  and  the  US.  According  to 
Macao’s official statistics, the EU accounted for 5.5% of its total FDI stock in 2023 (excluding 
offshore centres). According to Eurostat, EU FDI in Macao accounted for EUR 1.46 billion at 
the end of 2023 (latest available), while FDI in the EU from Macao amounted to EUR 984 
million. 

The EU-Hong Kong and Macao Policy Dialogue Support Facility project provided a platform 
for discussions on topics such as sustainability during the early part of the year, until May 2024. 
In December 2024, the new Policy Dialogue and Public Diplomacy Facility for Hong Kong 
and Macao was launched. The 3-year project supports the EU Office’s continuing engagement 
with key counterparts in Macao on strategic topics of mutual interest, primarily through joint 
events, preparation of studies, and production of visibility material. 

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