Palau: An American think tank has warned that China is using transnational criminal organizations to advance its political agenda in Palau, which it said could undermine Taiwan's diplomatic ties with the Western Pacific nation.
According to Focus Taiwan, Pacific Economics reported that transnational criminal organizations have been making investments in Palau, which is just one of the tactics used by China to exert influence on the island nation. This influence extends to areas such as academia, business, and culture.
One of the crime syndicates identified is the Prince Group, a Chinese-Cambodian conglomerate founded by Chinese businessman Chen Zhi. The report highlighted that the group has been involved in money laundering, online scams, and human trafficking. These activities have drawn scrutiny from both the Chinese government and Radio Free Asia.
The Prince Group has proposed resort investments in Palau exceeding US$1 billion. Similarly, many recent hotel investments in Palau have connections to China, the think tank noted.
Pacific Economics suggested that Palau should focus on identifying and preventing harmful business activities while encouraging positive investments. It cited examples such as Taiwan's hotel investments, Australia's solar power projects, and the U.S.' infrastructure investments.
Jarod Baker, co-founder of Pacific Economics, indicated that Palau's formal recognition of Taiwan and its non-adherence to the "one China" policy creates a gap that criminal organizations can exploit to assist Beijing's influence where official efforts might be insufficient.
Baker emphasized that while China employs various methods to influence other countries, business remains its primary tool for advancing its strategic goals.