The Dominican Republic has shuttered a Chinese-operated cardboard factory following the discovery of multiple legal violations, including illegal fuel storage and unlawful employment of foreign workers—a move applauded by the U.S. State Department but met with sharp criticism from China.
Factory Shutdown Over Major Violations
Authorities in Santo Domingo shut down Fábrica Cartesa, a Chinese cardboard manufacturing plant in San Antonio de Guerra, after inspections revealed a litany of regulatory breaches. The Dominican Industry and Trade Ministry found the facility lacked proper land-use permits and business licenses, while also uncovering a hidden fuel depot containing over $37,000 worth of diesel. The discovery led to the seizure of the fuel and the detention of several Chinese nationals linked to the operation.
U.S. Backs Dominican Enforcement
Juan Pablo Segura, the U.S. Assistant Secretary of State for Western Hemisphere Affairs, commended the Dominican government for its actions, stating that illegal operations undermine fair economic competition. “Operating without permits, running an illicit fuel depot, and evading labor laws by illegally hiring foreign workers will not stand,” Segura said in a social media post. “Real economic partnership requires transparency, fair competition, and adherence to the rule of law.”
China Accuses U.S. of ‘Sowing Discord’
The Chinese Embassy in Santo Domingo fired back, accusing the U.S. of exploiting the incident to tarnish China’s reputation. In a statement, the embassy claimed the U.S. was engaging in “verbal political manipulation” and insisted that most Chinese businesses in the Dominican Republic operate legally. “We will never allow any individual case to be used to generalize, nor to stigmatize or discredit their image,” the statement read.
Broader Crackdown on Chinese Businesses
The factory closure follows a wider Dominican government crackdown on Chinese-operated businesses. Last month, authorities ordered 24 Chinese companies to suspend operations after labor inspections uncovered unsafe working conditions and widespread violations, including failure to pay overtime and hire the legally mandated 80% Dominican workforce. Local business leaders have raised concerns about unfair competition from foreign firms that flout regulations.
Dominican Commerce Minister Eduardo Sanz Lovatón reaffirmed the country’s openness to foreign investment but stressed that compliance with local laws is non-negotiable. The incident highlights growing scrutiny of Chinese business practices in Latin America amid U.S. efforts to promote regulatory enforcement.
Source: www.breitbart.com — https://www.breitbart.com/asia/2026/11/10/u-s-commends-dominican-republic-for-shutting-down-chinese-factory-operating-in-highly-illegal-circumstances/