Background on Chen Zhi and His Influence
Chen Zhi, a British-Camboyanese magnate, has been sanctioned by the United States due to allegations of overseeing forced labor camps in Camboya, where victims of human trafficking engage in online fraud. These sanctions have had a significant impact on Tabacalera de García, one of the world’s largest cigar producers based in the Dominican Republic.
Tabacalera de García and Its Connections
Tabacalera de García is a subsidiary of the Spanish group Tabacalera, which itself is part of the Allied Cigar Corporation congloceration. Chen Zhi holds the majority stake in this conglomeration, making him a key figure in the company’s operations.
Impact on Production and Employment
Juan Girón, the communications representative for Tabacalera de García from Madrid, stated that the company is facing challenges due to factors entirely outside its management’s control. The US sanctions have forced the company to temporarily adjust activity and employment levels at its factories.
“Minor shareholders are promoting the purchase of Chen Zhi’s shares so that he is completely removed from the operation,” Girón said, expressing confidence that “the situation can normalize.”
Current Situation at the Factory
Cándido Rosario, former director of Tabacalera de García for 29 years, informed AFP that the factory is currently operating at 20% of its workforce due to the US sanctions.
“There is a lot of nervousness among employees who are uncertain about the future,” Rosario added.
International Response to Chen Zhi’s Sanctions
Beyond the US, other countries have taken action against Chen Zhi’s assets. The UK froze commercial and real estate assets worth over $130 million linked to his network, while Taiwan, Singapore, and Hong Kong seized assets valued at approximately $350 million.
Chen Zhi, born in China, is the principal shareholder of several European, Asian, and Caribbean-based shell companies that ultimately lead to Tabacalera, according to an organizational chart accessed by AFP.
Moreover, Chen Zhi founded the massive Camboyanese conglomerate Prince, which has been sanctioned by the US Office of Foreign Assets Control (OFAC).
Key Questions and Answers
- Who is Chen Zhi? Chen Zhi is a British-Camboyanese magnate and the majority shareholder of Tabacalera de García, a prominent cigar producer in the Dominican Republic.
- Why were sanctions imposed on Chen Zhi? The United States imposed sanctions on Chen Zhi for allegedly overseeing forced labor camps in Camboya, where human trafficking victims engage in online fraud.
- How does this affect Tabacalera de García? US sanctions have forced Tabacalera de García to adjust its production and employment levels, currently operating at 20% capacity.
- What other countries have taken action against Chen Zhi? The UK froze assets worth over $130 million, while Taiwan, Singapore, and Hong Kong seized assets valued at approximately $350 million.
- What is Chen Zhi’s connection to the Camboyanese conglomerate Prince? Chen Zhi founded and is closely linked to the Camboyanese conglomerate Prince, which has also been sanctioned by the US OFAC.
