China and the United States keep on trading blows in their ongoing trade war. Beijing responded with numerous retaliatory measures, such as imposing an 84% tariff in return and using TikTok to expose American brands. This is after Donald Trump announced 125% tariffs on the Asian giant.
One of the next chapters in this tariff war could involve China forcing the United States to sell its casinos in Macau if Trump goes ahead with the forced sale of TikTok, as well as control over the Panama Canal ports. Such a move would be a huge blow to three large American companies operating in one of the most unique regions in the world, Macau.
Macau was under Portuguese control from the 16th century until 1999, making it the last European colony in Asia. Portugal transferred sovereignty over Macau to China on December 20, 1999. Ever since, it has operated under the principle of one country, two systems. Meaning, while it is part of China, it has a separate administrative system, with its own government and economy.
As a matter of fact, its official name is the Macau Special Administrative Region of the People’s Republic of China. One of the most globally recognized differences from mainland China is that gambling is legal in Macau. As a result, it has become the only region in China where casinos are allowed. Yearly, millions of visitors come specifically to gamble. Gaming is its main source of income, earning it the nickname “the Las Vegas of Asia”. Since the early 21st century, it has been the largest gambling hub in the world.
Las Vegas Sands, MGM Resorts, and Wynn Resorts are three companies that run casinos and resort complexes in Macau. If China ultimately forces the US to sell its casino assets, they could also lose a significant portion of their business.
