Taiwan and Palau’s governments have received warnings indicating that investments from Cambodia’s Prince Group pose risks to their security and sovereignty. Citing evidence of the conglomerate’s ties to transnational crime, Pacific Economics emphasized potential Chinese influence through these investments. Both nations are urged to tighten regulations on foreign investments to safeguard against such threats.

Governments in Taiwan and Palau have received warnings regarding investment offers from Cambodia’s Prince Group, considered a potential threat to national security and sovereignty. The Hawaii-based think tank, Pacific Economics, indicated that the conglomerate is heavily associated with transnational criminal activities, as corroborated by reports from Radio Free Asia and other entities. These concerns center on the group’s Chinese leadership and its undisclosed international connections, which may facilitate influence from Beijing.

This warning stemmed from an extensive six-month investigation into foreign investments in Palau, as part of a study funded by the U.S. government. Jarod Baker, the think tank’s founder, noted the troubling trend of wealthy investors with possible criminal affiliations pouring money into the nation, which is vulnerable given its size. An alarming example includes the Prince Group’s investment activities linked to a potential $1 billion in hotel and resort developments.

Documents reviewed indicate that a substantial lease for an uninhabited island in Palau was acquired by the Prince Group under suspicious circumstances, drawing attention to the potential implications for domestic land ownership. Baker pointed out that such leases could restrict land use for generations without ensuring economic benefits for the local population.

In a recent statement, the Prince Group refuted the findings of Pacific Economics, labeling them as defamatory while denying involvement in Palau’s investment landscape. However, corporate records demonstrate connections between the conglomerate and individuals tied to high-profile land deals, casting doubt on their claims.

Rose Wang, a key figure associated with the investment, has faced scrutiny due to her connections with controversial entities yet claims to have no association with Prince Group activities. Despite her insistence on legitimacy, her ties to the Chinese state may reflect broader implications for Taiwan and Palau in terms of foreign influence and investment vetting processes.

Despite a lack of direct evidence linking the Prince Group to illicit activities, Baker expressed concerns about the potential for Beijing to exploit criminal networks to further its interests. The Taiwanese government acknowledged the risk, noting historical patterns of infiltration by Chinese-affiliated businessmen into its diplomatic allies.

The Prince Group has maintained an extensive operational presence in Taiwan since 2018, facilitating various financial ventures, while strategically navigating regulatory constraints regarding Chinese investments. As the situation evolves, both Taiwan and Palau are enhancing measures to secure their economic domains against potentially harmful foreign investments.

The warnings issued to Taiwan and Palau regarding the Prince Group highlight significant concerns about foreign investments potentially compromising national security. The analysis by Pacific Economics unveiled complexities surrounding the group’s alleged criminal ties, questionable lease agreements, and notable individuals involved in their operations. Both nations are now poised to strengthen their investment policies to mitigate risks associated with foreign influences, particularly those emanating from China.

Original Source: www.rfa.org

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