"U.S. think tank warns of Chinese transnational crime syndicates in Palau", 1 March 2025

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.

In a recent report, Pacific Economics said that transnational criminal organizations have been making investments in Palau, which is but one of the tactics being used by China to exert influence on the island nation, alongside initiatives in areas such as academia, business and culture.

One of the crime syndicates is the Prince Group, a Chinese-Cambodian conglomerate founded by Chinese businessman Chen Zhi …, the report said. The group has been implicated in money laundering, online scams and human trafficking, …

The Prince Group has proposed resort investments in Palau that are worth over US$1 billion, the report said. Similarly, many recent hotel investments in Palau have ties to China, the think tank added…

Jarod Baker, co-founder of Pacific Economics, told … that while Palau formally recognizes Taiwan and does not adhere to the "one China" policy, criminal organizations can help Beijing fill the gaps in areas where China's foreign ministry's efforts might fall short.

"[The crime syndicates] are used to covertly bring in money, people and other elements," he said…