MGM China doubles down on local push amid tariff tensions
MGM China President and Executive Director Kenneth Feng has claimed that MGM’s American-backed operators are “very local companies,” as the company continues its deep-rooted presence in Macau. Speaking to CNBC, Feng downplayed fears of rising geopolitical tensions, asserting that MGM China ‘does not receive any particular pressure’ despite its US ownership.
In an interview, Feng focused on the company’s commitment to Macau’s development, noting that around 70 percent of its 14,000 employees are locals, with most of the remainder coming from mainland China.
Over the current decade, MGM has pledged more than $2 billion to help diversify the local economy. “We are trying to help the government to diversify the economy,” Feng said, adding that community engagement and corporate social responsibility play a key role in strengthening ties with authorities and residents.
Sports events: a new revenue model
Feng also praised other operators for hosting high-quality events, such as the NBA showcase at the Venetian, saying these attract “more quality visitors” and benefit the Cotai Strip as a whole. MGM’s Cotai property houses a 3,000-seat theatre designed for sports and entertainment events, which Feng described as “meaningful, sustainable, and appealing to audiences.” He added that Macau’s compact geography means that events held by one operator often benefit all six concessionaires.
His comments focused more on localisation and resilience. By promoting local hiring, community ties, and long-term investment, MGM China aims to reduce its exposure to political and reputational risks linked to its U.S. parent company. “Our focus is on integrating with the local economy and winning the trust of every party,” Feng said, emphasising cooperation with the Macau government.
Tariff tensions mount
Feng’s remarks come as trade tensions mount between the USA and China once again. Reportedly, the US President Donald Trump has announced a new 100 percent tariff on Chinese exports, including critical software. The move was framed as retaliation against China’s restrictions on rare earth metals, which are vital for high-tech and military industries. Economists have warned that the measures could escalate into a broader trade war, unsettling global supply chains.
While MGM’s operations remain rooted in Macau, its local strategy appears designed to cushion the company from wider geopolitical shocks. However, analysts warn that American casino operations remain vulnerable to shifting political dynamics. Months ago, Dan Wasiolek, senior equity analyst at Morningstar, cautioned that trade tensions could complicate operations and reinvestment plans for US firms like Wynn, Sands, and MGM.
He also warned that if tensions continue, Beijing could eventually favour domestic or non-US operators. Policy uncertainty has also slowed investment momentum, as American firms may hesitate to finance new projects amid political unpredictability. And so, Feng’s remarks show how Macau’s US-backed operators are balancing foreign ownership with local commitment, betting on community trust, diversification, and cultural alignment as the best safeguards in uncertain times.
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