Dominican business owners are demanding “clear rules” be applied to Chinese businesses operating in the country. Local business owners complain of unfair competition stemming from alleged violations of fiscal, customs, and labor regulations by Chinese-owned businesses that in the past five years have boomed all around the country.
The concerns were recently voiced by the National Council of Provisions Trade (CNCP), an umbrella organization representing 74 national commercial associations, during the 27 May 2025 “Listín Diario Breakfast” event held at the newspaper’s headquarters in Santo Domingo.
During the interview, the representatives of the CNCP highlighted that hundreds of Chinese-operated businesses are creating an uneven playing field, severely impacting Dominican micro, small, and medium-sized enterprises (MSMEs) and national production. CNCP Secretary-General Jorge Jerez clarified, “We are not opposed to them coming because we are a free country. We understand that we can all coexist,” but emphasized, “What we need are clear rules.”
Jerez stressed the need that the same conditions apply to the Chinese as the government applies to members of the CNCP. He argued that Dominican merchants now are struggling to compete. He said the Chinese businesses are benefiting from tariff advantages, fiscal breaks, and have the backing of their government.
Merchants claim many Chinese establishments fail to issue tax receipts and evade tax payments. When authorities attempt audits or enforcement, these businesses allegedly change their company names, formally disappearing only to reappear under new names at the same locations.
Furthermore, the CNCP asserts that most products sold by these businesses are directly imported from China. A significant concern raised was the struggling local notebook industry, once a market leader, now facing immense difficulties due to imported alternatives. “You go to a supermarket, and local notebooks aren’t sold. In one of those large platforms, it’s not true that a local notebook appears. All are imported,” Jerez stated.
For the interview, Alberto Leroux, president of the CNCP, detailed a pattern of Chinese investors acquiring or leasing properties for extended periods, importing their own engineers and pre-built materials from China, and even employing workers from their home country for construction. “In the end, the profits go to China,” Leroux lamented.
The CNCP is urging the Dominican government to establish transparent regulations, effective customs controls, and permanent fiscal oversight mechanisms to prevent further undermining of Dominican businesses. They recommend implementing measures such as a 6% advance payment for taxpayers difficult to audit at entry points in Customs and that the Tax Agency (DGII) enhance tax monitoring of these operations.
“Every day we are being punished as a sector. When a topic is put on the table, we are not taken into account. And from that point, governments have been, from one point of view, responsible for this sector declining,” Jerez said.
Merchants warn that without prompt action, this business model could expand to include groceries and other essential goods, further displacing traditional Dominican merchants.
Asian, particularly Chinese, businesses have been under government scrutiny for months due to concerns about irregular trade and unfair competition. Earlier this month, the Customs Agency (DGA) announced it had audited five Chinese businesses importing and selling household goods, miscellaneous items, and hardware for “possible tax and customs offenses.”
Meanwhile, the CNCP is gearing up to host the sixth edition of ‘Expo Provisiones’ will be held from Thursday, 29 May through Sunday, 1 June 2025 at the Sambil shopping center. More than 70 companies are expected to participate, with India as the guest country.
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Listin Diario
29 May 2025