Disputes between countries are not something new, however, the new areas of this push and pull are not for territorial dominance only but also for software and intellectualism. Well, such differences have been there since time immemorial only that with the recent development of technology, the wars are quieter and smarter with no actual property or life loss. The most recent conflict has been that between the USA and China, with China being the first to take the offensive side.
So far there have been three offenses against the USA by China. According to calvinayre.com, the first offense was a few days ago when the chairman and president of the American Chamber of Commerce were both refused entry to Macau. Later on, they signed statements, under pursuance, stating that they willingly decided not to enter Macau. Though this did not have immediate implications, it is speculated that if any of the top leaders of American casinos in Macau were to be arrested, then there would be trouble.
A day later, China issued a ban on the use of US-made technology in government offices. It is still a small move that will have a major impact once the private sector is included in the ban. Lastly, China is now using what corporations’ tweet about against them.
It has revived the social credit system from back in 1984 and is ready to ban any company that breaks the code. This could mean losses for most of the American companies operating in China. Enough with the strikes against the USA, China has been coming to the US for a couple of years, though indirectly.
One is by the increasing prices of essential items in China. Inflation has hit a high of 4.5% since January 2012. This means that the population ought to spend more on crucial items and less on entertainment. As a consequence, fewer profits for Macau, a casino based in Beijing.
Hong Kong has not been spared either in this war between China and the USA. Inflation in Hong Kong is really evident with the GDP reducing by 3.2% as prices for essential prices increase by 3.1 every year.
In a snapshot, this means residents of Hong Kong are buying less items as the standards of living to continue going down. Meanwhile, expenditure on anything considered non-essential is cut down. This could mean a reduction in the profits by Macau.
A quick look at the Wynn chart shows two outstanding bottoms in 2009 and 2016. Another happened early this year, though there has been no upward trend since then. This means there is still a chance for the charts to go lower.
If ever this war is resolved and the high tensions dwindle, Macau could once again rise to be the profitable firm it was. Though with each day that passes it appears to be more of a dream than reality, it is better to be prepared for the economic turn around that would take place.