Any light at the end of the tunnel for Macau’s casino operators may just have been extinguished after Chinese President Xi Jinping doubled down on his hardline zero-COVID strategy.
In the wake of suggestions that recent outbreaks across parts of mainland China, including Shanghai and Beijing, might lead to a gradual easing of zero-COVID, Xi instead told a meeting of the Politburo Standing Committee (PBSC) late last week that the nation must strengthen its efforts in combatting the virus.
Officials must, Xi said, “Align their thinking and actions and maintain a high degree of ideological, political and action unity with the Party Central Committee,” according to information from state-run news agency Xinhua.
“Our prevention and control policy is determined by the nature and purpose of the Party.”
Xi told the PBSC meeting that “persistence is victory”, describing China’s COVID-19 fight as being at a “critical and strenuous stage” and insisting the country must “go against the current, not retreat”.
This means that officials and governments at all levels must “resolutely implement the decisions of the [Party], fully carry forward the fighting spirit and resolutely build a barrier for epidemic prevention and control.
“We have won the battle to defend Wuhan, and we will certainly be able to win the battle to defend Shanghai,” Xi claimed.
He also warned against anyone doubting the government’s strategy, stating that officials must “always keep a clear head and unswervingly adhere to the general policy of ‘dynamic clearing’ and resolutely fight against all words and deeds that distort, doubt and deny our anti-epidemic policies.”
Xi’s stance comes amid widespread lockdowns in Shanghai and Beijing, among other cities, which have caused serious disruption to supply chains and sparked anger among locked down communities.
It has also seen the Shanghai Composite Index fall 17% in 2022, making it the worst performer in Asia according to a report by the South China Morning Post.
Redmond Wong, strategist at Saxo Markets, told the SCMP that China’s hardline stance will continue to impact the Chinese and global economies going forward.
“Relaxation of dynamic zero-COVID policy is now completely off the table,” Wong said. “This is going to have enormous negative impact on the economy and the financial markets. The much talked about economic, fiscal and monetary stimulus policy initiatives, even having been rolled out, will be just pushing on a string.”
As reported by Inside Asian Gaming, some analysts have expressed concern over the liquidity of certain Macau concessionaires – the most notable being SJM Resorts – with the impacts of tight border restrictions between Macau and its main feeder market of mainland China now well into their third year.
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