An analysis by José Singer, former Dominican special envoy to the United Nations Security Council, published in Diario Libre on 28 March 2026, provides a stark warning regarding the long-term structural risks of “flexibilizing” local trade and tax rules to accommodate Chinese state-backed investment.
Singer Weisinger warns of the erosion of the local tax base and the strategic displacement of Dominican industry.
He writes that the Dominican Republic is currently repeating the “myopia” seen in other Latin American nations by prioritizing short-term consumer savings over long-term economic sovereignty.
Drawing from a recent 60 Minutes (CBS) report and his own diplomatic missions to Huawei headquarters, Singer highlights a pattern where Chinese state subsidies allow firms to undercut competitors until the local industry is forced to retreat.
The threat to the tax base
A primary concern raised is the “unfair competition” enabled by the Dominican government. Singer points out a specific regulatory loophole:
• Free Zone displacement: Foreign companies, specifically Chinese, are being permitted to operate under Free Trade Zone (Zona Franca) regimes.
• Tax erosion: These entities do not pay income tax, yet they are competing directly in the local market against established Dominican industries that contribute significantly to the national treasury.
• Market capture: By the time local officials realize the “low prices” were subsidized by the Chinese state, the domestic competition may already be decimated.
Singer warns that there is growing concern over the complacency shown by certain Dominican officials who argue that these low prices, driven by Chinese state subsidies, benefit the consumer. He says that what remains misunderstood is that such pricing is sustainable only as long as competition exists; once the competition is eliminated, the market landscape will shift.
Global context and local impact
Singer notes that while US tariffs have reduced Chinese exports to the Americas by 10% this year, China’s global exports surged by nearly 22% in January and February 2026. This pivot toward Latin America is not merely commercial but strategic.
“It is not about opposing foreign investment; it is about questioning the permissiveness toward unfair competition practices that the State itself tolerates,” he warns.
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Diario Libre
30 March 2026