Questions about these types of shopping centers escalated after chats were leaked from Communist Party representative Karol Cariola, in which she asked Irací Hassler (former mayor of Santiago) to help a Chinese businessman with his business patents.
The National Multi-Union—a trade association focused on supporting and protecting micro, small, and medium-sized businesses in Chile and headed by economist Juan Pablo Swett—launched several barbs regarding the proliferation of Chinese malls in the country.
He accused them of being a "real threat to established businesses," of requesting meetings with authorities to establish themselves, flouting the Lobbying Law, of many of them "not issuing a ticket," and of "exploiting" their workers.
The association called on the government—specifically the Ministries of Labor, Housing, and Public Works—and also the Internal Revenue Service (SII) to address the issue.
Questions about these types of shopping centers escalated after chats with Communist Party representative Karol Cariola were leaked. In one conversation, she asked Irací Hassler (a former mayor of Santiago and also a communist activist) to help a Chinese businessman with his business patents.
The Asian country's embassy, meanwhile, ruled out any connection to the incident.
Chinese malls “are a threat”
In a statement, the National Multi-Union expressed its concern about the proliferation of Chinese malls in our country, whose annual growth rate reaches 30%, "becoming a real threat to established businesses that operate formally and in strict compliance with the law."
He stated that we have all "witnessed acts that constitute crimes for the benefit of Chinese businesses," linked to "the obtaining of illegal patents, meetings without a Lobbying Law, and the initiation of construction projects without building permits."
He lamented that, on the contrary, formal SMEs "are plagued by permitting and bureaucracy."
"The operations of some of these Chinese businesses undermine free competition and harm the competitiveness of smaller companies. Some fail to issue sales receipts, sell illegal products, and even have been reported for labor exploitation," the National Multi-Union stated.
Notice to authorities
In the association's opinion, everything related to the aforementioned malls "is serious."
Therefore, he asked the Internal Revenue Service to implement "a comprehensive and urgent audit plan to ensure that these businesses operate under the principles of fair competition and in compliance with tax law."
They also requested that the National Consumer Service (SERNAC) join the oversight process to ensure compliance with the Consumer Law.
And the National Multi-Union demanded that "the Ministries of Public Works and Housing issue official communications to municipalities requesting information on the permits and licenses granted for the construction and operation of these types of businesses in their communities, providing background information to demonstrate compliance with the procedures and requirements stipulated by law."
Finally, he asked the Ministry of Labor to do the same regarding inspections of Chinese-owned businesses "to ensure that they faithfully adhere to Chilean labor regulations, as well as the international treaties to which we subscribe as a country."
