When the former Portuguese colony reverted to Chinese rule on December 20, 1999, Beijing promised that the city's "capitalist system and way of life" would remain unchanged for 50 years.
The city is now regarded by Beijing as a shining example of its "One Country, Two Systems" model -- in contrast with neighbouring Hong Kong, which was rocked by sometimes violent pro-democracy protests until a Beijing-imposed national security law in 2020.
Xi on Friday touted Macau's accomplishments under Chinese rule, including its international appeal and a per capita GDP that ranks among the world's highest.
"Macau's splendid achievements since its return to the motherland is proof to the world that 'One Country, Two Systems' has a clear systemic advantage and strong vitality," Xi said in a speech at the inauguration.
That framework "must be adhered to over the long term," he said.
Following its handover, Macau grew into the world's casino capital by gaming revenue and a popular destination for Chinese tourists.
But it is now under orders from Beijing to diversify its economy -- and the city's leaders have suggested industries such as financial services, technology and Chinese medicine as new sources of growth.
But as of November, gaming-related taxes still made up 81 percent of government revenue and experts say Macau is years away from weaning itself off casino wealth.
- New leader -
Anniversary celebrations kicked off Friday morning with a flag-raising ceremony at the city's Lotus Square, with incoming leader Sam Hou-fai, Macau government ministers and some visiting Chinese officials in attendance.
Sam served as president of Macau's apex court since handover and was the sole candidate in October's leadership race, receiving 99 percent of votes from a 400-person committee of Beijing loyalists.
The 62-year-old is Macau's first post-handover leader to be born on the mainland and not to have a background in business.
He replaces Ho Iat-seng, who took office in 2019 and spent much of his tenure managing Macau's response to the coronavirus pandemic and its economic fallout.
The Chinese president on Friday emphasised the need for a diversified economy as he laid out "four hopes" for Sam's administration.
Macau must "improve its planning for industrial development, and step up policy support and financial investment to cultivate internationally competitive new industries," Xi said.
He highlighted the importance of Hengqin Island, a landmass adjacent to Macau and three times its size, which was partly leased by Beijing to Macau to boost its land supply for non-gaming development.
"The central government decided to develop Hengqin with the goal of fostering Macau's development of a diversified economy and to facilitate the living and employment of Macau residents," Xi said.
"There can be no development of industries and projects that do not align with this positioning."
He also urged Macau to bring in talents to improve local governance, expand international ties and to "steadfastly uphold national security and Macau's stability".
Following the end of 442 years of Portuguese rule, Macau's fortunes have risen in lockstep with China's economic growth.
It is the only place in China where casino gambling is permitted and has long surpassed Las Vegas as the world's top casino hub, fuelled by two decades of Chinese visitor spending.
Macau, with a resident population of 687,000, saw just over 29 million visitor arrivals in the first 10 months of the year.
Its GDP has soared from $6.4 billion in 1999 to more than $47 billion last year, and its population is the richest in China on a per capita basis.
Sam Hou-fai: Macau's top judge turned city leader
Macau (AFP) Dec 19, 2024 -
Macau on Friday will welcome a new leader who has criticised the "barbaric expansion" of the casino industry and vowed to diversify the city's economy to align it with China's development goals.
Sam Hou-fai, 62, is set to be sworn in as Macau's next chief executive on Friday by Chinese President Xi Jinping, after a one-horse race in October where he was chosen by a committee of 400 pro-establishment figures.
His inauguration will coincide with the 25th anniversary of the former Portuguese colony being handed over to China under a "One Country, Two Systems" framework that promised autonomy and a separate legal system.
Sam spent his entire post-handover career as president of Macau's Court of Final Appeal, the city's top court.
Despite that, he has admitted to being relatively unknown in the city -- which he said was proof that judges were independent.
Unlike the three chief executives before him, Sam was born in mainland China and does not have a background in business. He moved to Macau in 1986 to work for the colonial administration.
Beijing has for years ordered Macau to diversify its economy and grow non-gaming industries. But as of November, gaming-related taxes still make up 81 percent of government revenue.
Announcing his leadership bid in August, Sam said there had been "a period of disorderly development and barbaric expansion" by the tourism and casino industries.
"This situation of having one dominant industry is unfavourable to the long-term development of Macau and brings a huge negative impact," he said at a press conference.
He later dialed down his criticism and said that the gaming sector will not shrink or be shut down under his administration, adding that "healthy and orderly development" was needed.
Sam, who studied law at China's elite Peking University and later in Portugal, rose through the ranks as Macau's last colonial government sought to localise its civil service in the late 1980s.
Jorge Rangel, the ex-minister in charge of that localisation effort, recalled Sam as a "quiet type of person" who was "very young when he was appointed senior judge in Macau".
Having joined the judiciary in 1995, Sam was fast-tracked to the top post just four years later and he "accepted his position very well."
"He knew that it was a very big challenge for him," Rangel told AFP.
As top judge, Sam presided over trials of corrupt Macau officials.
- Dissent stifled -
When neighbouring Hong Kong was rocked by huge pro-democracy protests in 2019, Beijing also clamped down on dissent in Macau -- a trend reflected in the courts.
"(Sam's) judicial style is literalism: he will rule based on how the law was written," University of Macau scholar Ieong Meng-u told AFP.
But in some cases, "the authorities had already decided to do something, and they needed to find the legal grounds", Ieong said.
In 2021, Sam was widely panned for a ruling that outlawed a peaceful candlelight vigil held to commemorate the 1989 Tiananmen Square crackdown.
The same year, Sam and his fellow judges ruled in favour of the Macau authorities' decision to disqualify 21 pro-democracy candidates from running for the city's legislature.
As a policymaking novice, Sam will have to contend with an economy that has not fully recovered from the heavy blow dealt by the coronavirus pandemic and long-running livelihood concerns.
Despite being a native of Zhongshan in southern China, Sam has described himself as a "being from old Macau" and dismissed criticisms that he is out of touch.
On the streets of Macau, one resident told AFP that he was hopeful about Sam's administration.
"I believe that he has much better administrative and judicial experiences, unlike his predecessors," said Lau, a retired civil servant in his seventies who only gave his surname.
"He will run a tighter ship and be fairer, at least that's my hope."
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