What seems like a probable end to the ongoing trade war between the US and China, the top leaders of the two countries have agreed upon signing an interim trade deal.
However, according to the latest from Reuters, China has suggested Macau as the venue for the signing of the trade deal.
Earlier, Chile’s capital Santiago was shortlisted as the venue for the trade deal in the guise of an economic truce, but following the inadvertent trail of events leading to widespread civil unrest in the country, Macau comes as Dragon’s top suggestion.
Macau as a venue would be highly significant for casinos and gambling operators. The Chinese territory hosts six casinos with three operators from the US.
The casino gambling licenses of the gambling operators are due to renew next year. As such the meeting in Macau is being seen as a strategic location for the trade deal between Xi Jinping and Donald Trump.
Macau has been battling with slumping revenues since the past year amidst the ongoing trade war between the two most powerful economies of the world. To make it worse, the continued pro-democracy protests have been taking a toll on the country’s casino gambling industry.
While analysts have already given up on hopes of positive revenue growth in any given month of the final quarter of the year, even the International Monetary Fund (IMF) predicts Macau’s gross domestic product (GDP) to fall by 1.3 percent in 2019.
The World Economic Outlook report published by IMF also speculates a 1.1 percent decline in the city’s GDP in 2020 indicating that there is no quick way put for Macau’s casino gambling industry which makes over 80 percent in contribution to the city’s GDP.
The IMF has said that the rate of growth in Macau’s GDP would be 4.3 percent this year.