Dominican Republic Shuts Down Illegal Chinese Cardboard Factory

The U.S. State Department on Monday commended the Dominican Republic for shutting down a Chinese cardboard factory that was operating under highly illegal conditions and in violation of multiple local regulations. “We commend Dominican Republic authorities for taking decisive action to shut down a massive, illegal, Chinese-operated cardboard factory in Santo Domingo,” U.S. State Department’s Assistant Secretary of State for Western Hemisphere Affairs Juan Pablo Segura said in a social media post. “Operating without permits, running an illicit fuel depot, and evading labor laws by illegally hiring foreign workers will not stand. Real economic partnership requires transparency, fair competition, and adherence to the rule of law,” he continued. The Dominican newspaper El Nuevo Diario, detailed this month that local authorities recently shut down “Fábrica Cartesa,” a Chinese cardboard company located in the municipality of San Antonio de Guerra, Santo Domingo. A thorough inspection by the Dominican Industry and Trade Ministry found an extensive list of irregularities at the company — including a complete lack of the land-use certificates and the required local permits to conduct its business activities. Most notably, inspectors located a clandestine fuel storage tank installed in the factory’s premises, leading to the seizure of over $37,000 worth of stored fuel and diesel. WATCH — Chinese Protester: Xi Jinping Is the Biggest Dictator in the World: Local authorities also found evidence of foreign workers illegally employed at the Chinese factory. The inspection reportedly resulted in the detention of an unspecified number of Chinese nationals linked to the company’s operations. The Dominican Migration Ministry reportedly launched an investigation to determine the legal status of the Chinese nationals found working at the factory. Following the shutdown of the factory, Dominican Commerce and Trade Minister Eduardo Sanz Lovatón reportedly affirmed that the Dominican Republic is open to foreign investment but stressed that companies must comply with local legislation. The Chinese Embassy in Santo Domingo took note of Assistant Secretary Segura’s remarks in an official Spanish language statement, accusing the American official of “sowing discord in the Chinese-Dominican cooperation by taking advantage of a particular case.” The Chinese diplomatic mission further accused the State Department of allegedly “taking advantage” of the closure of the factory to “brand” Chinese companies through what it described as comments that “undoubtedly harbor insidious intentions.” The communist diplomats claimed that the Chinese government requires its citizens and companies abroad to strictly comply with local laws and regulations. “The Chinese side respects the fair enforcement of the law by the competent Dominican authorities and, at the same time, firmly defends the legitimate rights and interests of Chinese citizens and companies,” the text read in part. WATCH — Exclusive — AI CEO Janet Kelly: China “Will Cheat & Steal & Lie” for AI Dominance: “The vast majority of the Chinese community and Chinese-owned enterprises established in the Dominican Republic operate honestly and in accordance with the law, creating numerous jobs and making tangible contributions to local economic and social development,” the text continued. “We will never allow any individual case to be used to generalize, nor to stigmatize or discredit their image.” The Chinese embassy urged U.S officials to “take more practical actions to promote regional progress and to refrain from resorting to verbal political manipulation.” The Dominican newspaper Diario Libre noted on Monday that local businessmen, including those who also maintain commercial relations with the United States, have expressed their concerns about the unfair advantages that foreign businesses gain when they fail to comply with local legislations and the efficacy of government oversight, given the large size of the Chinese-operated Fábrica Cartesa. “U.S. intervention and support thus place the issue on a level that transcends individual violations: the Dominican government’s obligation to ensure that all investments, regardless of their origin, comply with the same laws and compete on a level playing field,” the newspaper wrote. Last month, Dominican authorities reportedly ordered 24 Chinese companies in the country to suspend operations after inspections found that their operations represented an “imminent danger” to the safety of their respective workers. Per Deutsche Welle, the Dominican Labor Ministry inspected 101 commercial establishments operated by Chinese nationals and found numerous irregularities. Of the total, 91 were found to be dismissing workers before they had completed three months’ worth of employment, a threshold that would entitle them to rights related to vacation time and labor benefits. 53 of the inspected Chinese companies were found to not be providing their employees with weekly rest and 37 of the companies were not paying overtime, among other irregularities. Similarly, 33 of the companies were found in violation of local employment regulations that stipulate that at least 80 percent of a company’s worth force must be composed of Dominican nationals. Christian K. Caruzo is a Venezuelan writer and documents life under socialism. You can follow him on Twitter here.