SANTO DOMINGO — A senior U.S. diplomat publicly commended Dominican authorities on Monday for shutting down a cardboard factory run by Chinese nationals, placing a local enforcement case inside Washington’s wider argument over Chinese influence in Latin America and the Caribbean.

Juan Pablo Segura, the U.S. Assistant Secretary of State for Western Hemisphere Affairs, wrote on X:

“We commend the authorities of the Dominican Republic for taking decisive action to shut down a massive illegal cardboard factory in Santo Domingo run by Chinese nationals. Operating without permits, running an illicit fuel depot, and circumventing labor laws by illegally hiring foreign workers will not be tolerated. Genuine economic cooperation requires transparency, fair competition, and respect for the rule of law.”

The plant, known as Cartesa, is in San Antonio de Guerra, in Santo Domingo province. It was shut down in an October 29 operation led by the Ministry of Industry, Commerce and MSMEs (MICM) through its fuel-control corps, with support from the Migration Directorate and the Housing Ministry.

Officials said the factory lacked a land-use certificate and the permits needed to operate.

Inspectors also dismantled what they described as a clandestine fuel depot, including a 5,000-liter tank and 1,000 gallons of diesel, valued together at about RD$2.25 million, and cited violations of the country’s hydrocarbons law.

The Housing Ministry halted construction work for breaching building rules, and Migration checked the status of the foreign workers on site. Labor officials identified unpaid overtime, bonuses and weekly rest, as well as a breach of the legal proportion of Dominican to foreign workers.

Several Asian nationals were reportedly detained.

Industry Minister Eduardo Sanz Lovatón said at the time that the Dominican Republic is open to foreign investment as long as companies operate within the law.

Cleaning House

The closure is part of a broader push to inspect Chinese-owned businesses in the Dominican Republic. In October the Labor Ministry said it had inspected 101 such establishments, finding irregularities, and in recent weeks authorities have paralyzed dozens of shops and intervened others. Some stores in Greater Santo Domingo have stayed shut for months after Housing Ministry inspections found problems with permits and safety conditions.

Chinese merchants have pushed back. Representatives of the Chinese business community say they are working to comply with local rules and have described a discrediting campaign against them, according to Dominican press.

Dominican officials have said the rules apply to all companies regardless of the nationality of their owners.

The statement ties compliance with local law to a broader U.S. message about foreign investment. It frames “genuine economic cooperation” as requiring transparency and fair competition, language that echoes Washington’s concerns about Chinese commercial activity in the region.

The post is an expression of U.S. support, not a policy change, and no U.S. action against Cartesa has been announced.

The case itself is a matter for Dominican authorities. The permit, fuel and labor findings are the government’s account of an operation that took place almost two weeks before the U.S. statement, and no court ruling on the allegations has been reported.