A report in Guyana paper says “Truckers continue to decry loss of work to Chinese-linked operators” (May 23)! This came on heels of other reports. Chinese don’t play by fair rules. Government must take action to protect local businesses and truckers.
Truckers (of quarrying of sand and stone) and other local operators have been seething for years over what they claimed was “Chinese illegal, exploitive, underhand practices that undermine their operations to earn a fair, basic living”. The local Guyanese truckers are not the only ones to complain about Chinese operations in Guyana. SN carried reports of complaints of operators of other businesses. Business persons (in wholesale and retail) have been complaining how the Chinese undermine their general businesses (merchandise), forcing them to close up operations or rent their businesses to the Chinese; local Guyanese businesses have been suffering losses as a result of what they claim to be unfair competition from Chinese. The Chinese have been known to sell at lower prices than local Guyanese because of lower costs of doing business. Successive governments have claimed that the local Guyanese can’t compete with the Chinese without delving deeply into their allegations. Stabroek News carried reports on alleged illegalities (not paying duties and licenses for operations) of Chinese business practices.
Contractors also say the Chinese undermine operations of locals in nearly every government sector and in local operations including in restaurants. Also, the Chinese have been known to be involved in mining, fishing, and state construction sectors to the detriment of locals. Guyanese have expressed concern over the Chinese ‘robbing’ them of their rightful share in infrastructure development and market share of business. The Americans also complain that the Chinese are favored in state contracts in Guyana. The Chinese, complainants say, have been fetching the gold, lumber, fish and other materials from Guyana. And the Chinese are accused to using up the bulk of the foreign currency; they quickly buy up American dollars, making it difficult for local Guyanese.
That local operators argue that contrary to what governments may say, it is not that locals can’t compete. But the locals are at a disadvantage when the Chinese, like other foreigners, have been given subsidies, duty free concessions, and other special privileges to operate in Guyana and to do business with the sate. Business persons claim that the Chinese are known to be deeply involved in corruption, bribing local officials for decades in order to land contracts and licenses to operate various businesses. Guyanese and Americans or Canadians and Europeans don’t get similar or equal opportunities.
The Chinese operations in Guyana that dominate major sectors of the economy have been cause of concern in Washington, Canada and Western capitals. Complaints against Chinese business practices include prioritizing Chinese interests over local needs and unfair practices. There are also concerns about labor rights violations, environmental destruction, and corruption. Various cases were reported of poor and harsh working conditions. There were complaints of shocking low wages of Chinese workers and of their hiring of local Guyanese and the absence of (or lack of enforcement) labour standards. It is claimed that the Chinese are not known to pay NIS or seek protection of workers from accidents. In short, the Chinese don’t play by the same rules as Guyanese and as such have lower costs for business. They have a competitive advantage because they have lower expenses and lower costs of goods. There are claims that the Chinese don’t pay fair duties as a result of diplomatic privileges of bringing imports from China.
The local operators say they are not against the Chinese. They are against unfair practices. They say everyone should compete on equal footing. But they claim fraud, corruption, and illegal operations have given an advantage to the Chinese and other foreigners and in the process have thwarted their expectations of earning state business and a decent income from their business operations. Chinese operations, say local contractors and business persons, and now the truckers, are resulting in rising socio-economic problems; they are contributing to low wages, rising unemployment, and closure of many local businesses and the problems attendant to each factor. So overall, there is a significant loss in income and benefits for the population and the nation at large. It is not forgotten that while a MP takes home some half a million a month, a local worker on average takes home a paltry $70K that can barely pay for food for four for a month with other expenses like rental, transportation, utility, and other bills not being met.
The local operators say that Westerners (Americans) don’t take advantage of or exploit local businesses. The Americans and other Westerners are prohibited from offering incentives for contracts or to engage in practices that undermine local operations. But the Americans are tough at investment and offering loans because of anti-corruption rules they must follow in order not to be sanctioned by Washington. The Chinese have no such restrictions. The Chinese companies and government might bring the funding for projects, the technology for infrastructure, and the expedited way to complete projects. But other concerns like the effects on local operations are being overlooked. In addition, serious ethnic problems are not addressed. Chinese, not quite unlike that of localized Indians, have been to be targeted for attacks, most recently during protests related to the girl who drowned in Tuschen.
The government must step in and do something looking out for the interests of locals and not the Chinese or other foreigners who don’t play by the rules.
