Macau casinos are under threat after President Trump asked the Committee on Foreign Investment in the United States (CFIUS) to apply investment restrictions on countries labeled as “foreign adversaries” recently. The effort names China as one of the enemy nations, thus restrictions on the nation also cover its territory, influencing companies in Hong Kong and Macau.
The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) gives CFIUS the legal foundation to reduce risks connected with foreign investment in the United States
“FIRRMA strengthens and modernizes CFIUS to address national security concerns more effectively, including by broadening the authorities of the President and CFIUS to review and to take action to address any national security concerns arising from certain non-controlling investments and real estate transactions involving foreign persons,” the US treasury department explains.
Because of their possible backing of China’s military and intelligence development, President Trump told CFIUS his government believes Chinese investments in the United States pose a threat to American economic and national security.
To stop support for China’s military-civilian integration, the US intends to impose new investment restrictions aiming at a wide spectrum of financial activities. This includes private equity, venture capital, and public securities.
What China Says About the Initiative
In response to the US’s announcement of new restrictions on bilateral investments, China pledged to take “necessary measures” to protect its legitimate rights and interests. The Chinese Ministry of Commerce argued that the US measures are harming regular economic and trade exchanges between enterprises from the two nations.
A spokesperson for China’s Ministry of Commerce denounced the US’s “America First” investment policy memo as discriminatory, accusing it of aiming to further restrict Chinese investment in the US and American investment in China.
The spokesperson accused Washington of abusing the concept of national security in a discriminatory fashion and using non-market policies to disrupt normal economic and trade.
Why Macau Is on CFIUS’ Radar
It is highly probable that Hong Kong and Macau were classified as foreign adversaries because they are Chinese territories, even though Macau itself does not have direct US investments.
That said, three of its six casino operators—MGM China, Sands China, and Wynn Macau—are subsidiaries of American companies. The remaining three—Galaxy Entertainment, Melco Resorts & Entertainment, and SJM Holdings—do not operate in the US, though Melco is listed on the NASDAQ.
The potential impact of the administration’s directive on US-owned Macau casino operators remains unclear. It will likely depend heavily on the trajectory of the US-China trade relations and the specifics of the investment limitations.
According to Casino.com, MGM China brought in a total gaming revenue of $4.02 billion in 2024, marking a 27.6 percent increase compared to the previous year. Sands China achieved $7.08 billion in net revenue for the year, while Wynn Macau generated $363.7 million in revenue for the fourth quarter.
Macau is already famous as an East Asian gambling haven, but it’s undergoing a slow regional transformation.
“In the face of the surrounding environment, competition in the tourism and gaming industry in Macau is intensifying, and the risks and challenges brought to Macau should not be overlooked,” regional Chief Executive Sam Hou Fai said on the matter.
“The development of diversified industries has not been as expected by society and the new consumption pattern and the change of consumption concepts are bringing great challenges to Macau.”
Trump’s Actions Align with Past Administration’s Tough China Strategy
The Biden Administration’s outbound investment policy also reflected growing concerns in Washington about China’s technological progress in areas important to national security.
Over the past decade, US officials have closely monitored investments in Chinese companies involved in technologies like AI, semiconductors, and quantum computing, which have both civilian and military uses. The policy seeks to limit the transfer of resources and know-how that could strengthen China’s technological and military capabilities.
The Biden Administration also sought public input on this policy in 2023. Industry leaders, think tanks, and policymakers presented contrasting viewpoints regarding the policy’s scope and potential impact.
While some argued for stricter restrictions in line with national security, others underlined the need for finding the right balance to safeguard the global commerce and investment culture.
Using the feedback from different stakeholders, the government released a Notice of Proposed Rulemaking. This step concentrated on evaluating the possible economic impact and enforcement difficulties of the suggested limitations as a means of balancing national security issues against reducing negative consequences on justified commercial activity.
Conclusions
It seems obvious that tensions between China and the US are escalating. While casinos in Macau are not the primary targets of the latest US investment curb initiative, it may well still have a profound effect in the industry.
