Dominican merchants raise unfair competition concerns over Chinese-owned businesses
Santo Domingo.- The Dominican Federation of Merchants (FDC) is calling on tax authorities to strengthen oversight of Chinese-owned businesses in the Dominican Republic, arguing that some establishments are engaging in practices that create unfair competition for formal merchants.
FDC President Iván de Jesús García made the request during a business meeting organized by the National Union of Businessmen (UNE), attended by General Directorate of Internal Revenue (DGII) Director Pedro Porfirio Urrutia.
García said the federation has raised concerns about the issue since 2018 and estimates that there are more than 1,000 Chinese-owned stores operating across the country.
He argued that increased tax collection should include greater scrutiny of these businesses, which he alleges generate significant sales while not always meeting the same tax and regulatory requirements as established formal merchants.
FDC cites alleged tax evasion and import valuation discrepancies
García estimated that tax evasion associated with Chinese-owned businesses could exceed RD$80 billion annually, while stressing that the figure is based on industry estimates.
He also questioned what he described as discrepancies in the declared value of imported merchandise. According to García, some Chinese importers declare goods at significantly lower values than those reported by Dominican merchants, which he believes gives them an advantage in the marketplace.
The FDC president urged both the DGII and the General Directorate of Customs (DGA) to strengthen inspections and verify compliance with tax and customs obligations.
Another concern involves electronic invoicing and fiscal controls. García claimed that formal merchants have invested in systems required by tax authorities, while some Chinese-owned establishments allegedly operate without equivalent tools.
He also argued that the businesses collectively generate more than RD$1 billion in sales per day, raising questions about whether their tax contributions correspond to their reported commercial activity.
Merchants point to business closures
The FDC says the expansion of Chinese-owned stores has contributed to the decline of traditional businesses in several commercial areas.
García cited Duarte Avenue and surrounding areas as an example, saying the FDC previously had 91 members in the area but now has only seven. He attributed the disappearance of 84 affiliated businesses, at least in part, to what he considers unfair competition.
He also pointed to Santiago, where he said businesses historically operated by Dominican, Arab and Turkish merchants have been displaced from commercial areas, including the historic center. In Moca, he cited a shopkeepers’ association that he said declined from 33 members to five.
The business leader warned that continued closures could result in the loss of formal employment and called for government intervention.
Rosa Ng warns against generalizing criticism
The allegations have also prompted concern from Rosa Ng Báez, president of the Flor para Todos Foundation, who described the recent criticism of Chinese-owned businesses as an “unfortunate campaign.”
During an interview on Despierta con CDN, Ng Báez said she was concerned that statements directed at specific businesses could become generalized and fuel xenophobic sentiment toward the Chinese community in the Dominican Republic.
She questioned media narratives and headlines that, in her view, could contribute to portraying the issue as a broader campaign against merchants of Asian origin.
“It makes me very sad and worried,” Ng Báez said, emphasizing the importance of distinguishing between legitimate concerns about individual businesses and generalizations about an entire community.
Debate centers on enforcement
The FDC maintains that its request is focused on tax compliance, customs controls and fair competition, rather than the nationality of business owners. García has called specifically for the DGII and DGA to inspect establishments and ensure that all businesses meet the same legal and fiscal requirements.
Ng Báez, meanwhile, has urged caution in how those concerns are presented, warning that scrutiny of particular businesses should not translate into collective accusations against the Chinese community.
The debate therefore places two issues at the center of the discussion: the demand from formal merchants for equal enforcement of tax and commercial regulations, and the concern that criticism of specific business practices could contribute to discrimination or xenophobia if it is applied broadly to Chinese-owned businesses.
The FDC is asking authorities to increase oversight, while maintaining that businesses operating in the Dominican Republic should compete under the same tax, customs and regulatory rules.
