Day: June 26, 2021

This report from C4ADS presents a study that applies publicly available information to assess approximately 100 foreign-invested economic development zones (EDZ) across the Mekong region.  Among other things, the study uses various publicly available reports to demonstrate that illicit actors are exploiting many EDZ to conduct a variety of illicit activities, including corruption, environmental degradation, land conflict, drug trafficking, and wildlife trafficking.  The report finds that Based on this research, the authors find that EDZ do not always precipitate development, and even when growth is present, negative externalities can undercut the benefits the limited data access around Mekong EDZ hurts both host governments and local communities; and collaboration between government, grassroots organizations, private-sector, and civil society stakeholders will boost transparency and better match intentions to outcomes.

https://c4ads.org/s/MekongEDZ_Final.pdf

MYANMAR: MEKONG RIVER REGION ECONOMIC ZONES DRAW ILLEGAL ACTORS

On 26 June, Radio Free Asia reported that land confiscations, illegal casinos, money laundering, and environmental degradation plagues Myanmar Special Economic Zones (SEZ).  They were promoted as a way to spur economic growth and deliver material benefits to the local community.  However, considering the Yatai Shwe Kokko SEZ, it is said that the Chinese-backed $15 billion real estate mega-project along the Thaungyin River in south-eastern Kayin state has gained notoriety in recent months as a bastion of illegal activity, according to a report released by the Washington-based Center for Advanced Defense Studies (C4ADS).  The study identified 110 official and unofficial foreign-invested economic development zones in the Mekong region, including 40 in Cambodia, 15 in Laos, 20 in Myanmar, 16 in Thailand, and 19 in Vietnam, and used publicly available information to assess them in terms of economic development, illicit activity, and geopolitics.  The article refers to a combination of legal ambiguity, limited host government enforcement, and poor zone management. 

https://www.rfa.org/english/news/myanmar/economic-zones-06252021170326.html

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On 25 June, the Basel Institute on Governance launched a new series that aims to help private-sector decision-makers and compliance professionals, policymakers, anti-corruption and conservation practitioners, and law enforcement officers get a fast yet solid grasp of the main ways in which corruption and other financial crimes facilitate illegal trade.  It involves 4 topics freely available as both pdf downloads and online resources on the Basel LEARN virtual learning platform. 

https://baselgovernance.org/news/new-four-part-series-spotlights-green-corruption-risks-and-what-do-about-them

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On 25 June, National Review carried an article following the issue by the US Customs and Border Protection of a Withhold Release Order (WRO) against Hoshine Silicon Industry Co. Ltd, a company located in China’s Xinjiang Uyghur Autonomous Region – the day after the Department of Commerce placed Hoshine and 4 other companies operating out of the XUAR on its Entity List for export licensing restrictions. 

https://www.natlawreview.com/article/forced-labor-sanctions-solar-industry-what-you-need-to-know

THIRD-PARTY AUDITING WON’T SOLVE US SOLAR INDUSTRY’S XINJIANG PROBLEM

On 25 June, an article from the Peterson Institute for International Economics says that the US solar industry is justifiably concerned about the US Government’s hardening stance on China’s human rights abuses in Xinjiang, a key supplier of polysilicon used for making the photovoltaic cells used in solar panels.  China accounts for 68% of global polysilicon production, and virtually all silicon-based solar panels are likely to contain some Xinjiang silicon.  Due to growing concerns over forced labour, the Solar Energy Industries Association, a major trade group, released guidance on traceability and good practice guidance, which included a call for independent auditing of supply chains.  However, the article remarks that this can be quite difficult to implement for a variety of reasons.

https://www.piie.com/blogs/realtime-economic-issues-watch/third-party-auditing-wont-solve-us-solar-industrys-xinjiang

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