Prof. Wenjin Kang
Only Through Wind and Rain Can We See the Rainbow
Prof. Wenjin Kang, Head of Department of Finance and Business Economics at the University of Macau’s Faculty of Business Administration and Team Leader of the Financial Innovation Team at the Asia-Pacific Academy of Economics and Management, recently published an in-depth analysis in Macao Daily News. He pointed out that while the ongoing China-U.S. trade war has caused short-term shocks to Macao, and Macao can turn the crisis into an opportunity through diversified strategies.
Prof. Kang argued that the U.S. tariff hikes face resistance from international multilateral trade systems and domestic structural contradictions. With its $36 trillion national debt pressure and imported inflation issues, the U.S. has seen a weakening of dollar-denominated assets. Recent tariff exemptions on some Chinese goods reflect the unsustainable nature of its policies.
To address short-term challenges, Prof. Kang proposed a comprehensive three-dimensional response strategy for the Macao SAR government. Economically, he recommended targeted fiscal support to help businesses develop new markets. Socially, he advocated for enhanced employment services, SME assistance programs, and strengthened social security systems. Regarding financial security, he suggested establishing cross-border risk prevention mechanisms, including holding dollar assets through neutral intermediaries while increasing allocations to non-USD currencies like the RMB.
Macao could further leverage its role as a “China-Portugal Platform” by promoting an RMB clearing center for Portuguese-speaking countries, helping Chinese enterprises bypass tariff barriers. Prof. Kang emphasized that history has proven China’s economic resilience and urged Macao to capitalize on the “One Country, Two Systems” advantage, accelerate economic diversification, and tackle challenges through a strategy combining “domestic demand + innovation + openness.”
For further details, please read the original news via this link.