Las Vegas Sands Corp in Poor Position Between Trump and China

The Sheldon Adelson-backed Las Vegas Sands Corp is in an unfavorable position following the back and forth between the Trump administration and Chinese claims to islands in the Pacific.

Enflamed by an administration warming up to Taiwan, China has made it clear there will be no diving the two entities in the eyes of the US without repercussions. Add that to the many disputed Islands in the region and US officials have their hands full containing a president whose words are quick to incite while those erring on the side of caution urge conciliation. The US is currently indebted to China to the tune of $1 trillion, with more than half a billion dollars being traded between the two nations annually.

This simple fact hasn’t stopped the Trump rhetoric from growing increasingly inflammatory since his sabre rattling on the campaign trail, making such statements as, “We have rebuilt China, and yet they will go in the South China Sea and build a military fortress the likes of which perhaps the world has not seen,” and, “Amazing, actually. They do that, and they do that at will because they have no respect for our president and they have no respect for our country.” The latter reference being to then president Barack Obama.

The Pacific Rim Heating Up

On just his fourth day in office, President Trump signed the executive order to effectively withdraw the US, and by proxy many other countries relying on US participation, from the Trans-Pacific Partnership trade agreement. The move is only one of many acts, including taking on many china-hardliners into his administration, conditioned to show the President with be tough on the world’s second largest economy.

Current Speaker Sean Spicer commented “The U.S. is going to make sure that we protect our interests there,” in regard to the disputed islands. However, such rhetoric puts in danger many US investments in the region.

Public affairs commentator Deng Yuwen in Beijing had this to say in regard to the inflammatory remarks, “With previous presidents, their election promises weren’t taken so seriously.” He followed with, “…China must take his other warnings more seriously, especially about the South China Sea and Taiwan.”

Gaming Investments in the Region

Adelson’s gaming investments in the region alone are worth billions, but a direct confrontation between the US and Chinese territorial claims may cause business to go belly up in the face of all out economic warfare.

In essence the Las Vegas Sands corporation would make a fine Hostage for Beijing as a bargaining chip in negotiations with the Trump administration, putting jobs, trade and interests in the region at risk for far more countries than the US and China.

American investments in Macau will no doubt be brought to the foreground in the case of such an episode. These include Wynn resort properties and gaming ventures as well. It is speculated special tariffs and border taxes will be pinned on LVS in particular due to the fact that Sheldon Adelson has been one of Trump’s largest financial supporters.