Iván García stated that it is absurd to compete with them because from 2020 to 2026 “none of the regulatory institutions have carried out operations to audit them,” allowing them to have large-scale local administrations without any kind of control
SANTO DOMINGO.- During the year 2025, there were closures in the Dominican Republic of 5,784 formal companies, of which 1,819 business closures correspond to the commercial sector.
According to the president of the Dominican Federation of Merchants (FDC), Iván García, a determining factor in this situation of businesses nationwide is the unfair competition from Chinese vendors, who in his opinion continue to dominate more and more sectors, putting pressure on national businesses.
The businessman said that the number of Chinese businesses in the country exceeds one thousand , and a large part of them do not comply with the permits and yet continue to operate.
“This is causing traditional Dominican merchants to close their doors because they cannot compete with people whose declarations are accepted by the General Directorate of Customs (DGA),” he stated in remarks to the media.
He indicated that it is absurd to compete with them because from 2020 to 2026 "none of the regulatory institutions have carried out operations to audit them", allowing them to have large-scale local administrations without any type of control.
He stated that the Association of Merchants located on Duarte Street, National District, initially had 91 members and currently only maintains seven.
New businesses
According to the FCD president, Chinese businesses continue to expand into other areas such as the sale of vehicle parts, affecting other national retailers, who have also reportedly begun closing businesses, pressured by the competition.
“If they don’t inspect it at customs, or the General Directorate of Internal Taxes (DGII), that’s causing many businesses to close here in the Dominican Republic,” he admitted.
He explained that the announced “zero bureaucracy” is not yet a reality in the country because many members take up to a year to set up a business, while foreigners achieve it in a shorter period.
They are planning a 48-hour strike
Iván García warned that the merchants of the FDC are planning a 48-hour in search of reasonable solutions for this sector.
“We want definitive actions from all state agencies; all institutions have failed the Dominican Republic's trade,” he said.
Damage to the national economy
Julio García, president of the National Union of Businessmen (UNE), described the disproportionate growth of these vendors as "damage to the national economy" and to national commerce
“Every day we see stores closing down nationwide precisely because the Chinese are going in and setting up shop next to the big traditional businesses,” he said.
He explained that by placing themselves near establishments and with twice their size and lower prices, they are adhering to a practice well known to them, in addition to tax evasion.
Government defends itself
Pedro Urrutia, head of the DGII, defended the institution's work, stating that they maintain constant meetings with other entities for their regularization and that to date they have inspected 60 foreign establishments.
“The issue is being monitored. These kinds of things are being verified, and it's not just the DGII (General Directorate of Internal Revenue). The Ministry of Housing itself is verifying all these permit-related matters. So, work is underway, and actions are being taken,” he clarified.
According to their statements, they have held meetings with representatives of the Chinese embassy to reach common solutions, such as a migration census, which will determine the number of these points of sale and whether or not they comply with the required permits.
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