US memorandum poses challenges for city’s cross-border investments and tech collaborations

The memorandum titled “America First Investment Policy” (AFIP) may cause some impact in Macau, mostly related to gaming companies’ cross-border investments and challenges to technology collaborations with Chinese universities.

In an exclusive interview with the Times, Professor Alex Sili Zhou, an Associate Professor of Economics and Finance from the Faculty of Social Sciences at the University of Macau, said that the memorandum’s clear objective is protecting the national economic security of the United States and guarding against investment from China (including Macau and Hong Kong) in the US.

It limits or prevents investments involving “critical technologies, key infrastructure, healthcare, agriculture, energy, raw materials, personal data, or other strategic and sensitive areas.”

Professor Alex Sili Zhou

“From Macau’s perspective, the direct impact will primarily relate to cross-border investment restrictions. Macau’s gaming companies, such as Sands China and Galaxy Entertainment [Group], that have closer ties to mainland Chinese capital or are involved in the One Belt and One Road infrastructure projects, may encounter US financing restrictions under the Foreign Investment Risk Review Modernization Act (FIRRMA),” the scholar said.

“For instance, Wynn Resorts, the parent company of Wynn Macau, underwent scrutiny by the Committee on Foreign Investment in the US due to its shareholder structure,” Zhou further explained.

“Additionally, technology collaborations with Chinese universities could be at risk. For example, some key laboratories in Macau, such as those focusing on Integrated Circuits and Chinese Medicine Quality Research, may face restrictions under the US Export Control Reform Act if their research and development involve US technologies or partnerships with sanctioned Chinese firms like Huawei,” he added.

Although indirectly, additional implications could arise and affect people in Macau more broadly if additional measures are taken at the level of cross-border capital flow.

Zhou explained, “For instance, Macau banks and payment platforms, such as Macau Pass and MPay, could face exclusion from SWIFT (Society for Worldwide Interbank Financial Telecommunications) if they provide services to sanctioned entities.”

The professor noted that AFIP aligns with the core principles of Trump’s “America First” and “Make America Great Again” movement, which ultimately aims to uphold U.S. interests.

Speaking to the Times, he also explained that in the economic and developmental contexts, this can be understood as promoting domestic industries, increasing local employment, and enhancing security (including technological, economic, and geopolitical aspects).

He also noted that the AFIP has shifted the focus of the new American president’s policies towards an investment strategy, extending beyond just trade considerations, as was the case in the past.

As the Times reported earlier this week, a memorandum signed by President Donald Trump on the AFIP notes that the Macau Special Administrative Region has been officially included in the list of the United States of America’s “foreign adversaries.”

The February 21 memo aims to clearly distinguish between the countries and regions that are U.S. allies or adversaries for investment purposes.

Macau is listed in Section 4 of the memo, which defines the “foreign adversaries,” including the People’s Republic of China (including Hong Kong and Macau Special Administrative Regions), the Republic of Cuba, the Islamic Republic of Iran, the Democratic People’s Republic of Korea, the Russian Federation, and the regime of Venezuelan politician Nicolás Maduro.

The memo aims to curb Chinese investments in critical sectors of the American economy and was made public the same day that its Treasury Secretary Scott Bessent met China’s Vice Premier He Lifeng.