Chinese crime networks and a government initiative turned Cambodia into a scam hub — and a new stage for the CCP's propaganda campaigns.
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Vigilante groups on watch at the entrance of the Bavet Business Center. Late June, Bavet, eastern Cambodia. (©Sankei by Tomo Kuwamura)

In late June, I was filming at the Bavet Business Center in the heart of Bavet, a city in eastern Cambodia, about a three-hour drive from Phnom Penh, the capital.

Suddenly, a security guard speaking Chinese stopped me, saying, "What are you filming here?"

While it's called a business center, it spans around 100,000 square meters — roughly the same size as the Japan National Stadium. 

Inside the complex, more than a dozen residential buildings and restaurants stand side by side, with Chinese signs everywhere, giving it the look of a small Chinatown. 

Fraud Hub in Disguise

According to officials from Cambodian NGOs, its true nature is a "fraud hub." Their reports indicate it is operated by Chinese criminal organizations that scam people from around the world.

"Explain this to our boss," the security guard continued as I was led inside the building. "Delete the photos. What's your purpose?" I was questioned, surrounded by more than ten people in an office adorned with paintings of dragons and tigers.

About 30 minutes later, I was released — but they took my SD card containing the footage. Realizing that proceeding any further could be dangerous, I abandoned the coverage and left.

One local resident explained that thousands of people live inside the center. Some individuals who appeared to be of South Asian descent were seen working at computers. If the center is indeed a crime den, these men could be forced to participate in the scams.

The Hidden Hand

In fact, similar fraud hubs operate across Cambodia. An official from the Cambodian NGO, The Independent Democratic Informal Economy Association, estimates that there are hundreds of such centers nationwide. "Based on our experience, over 200,000 people are involved," the official said. 

Citizens from dozens of countries across Asia and Africa are lured by fake job ads promising high salaries, only to become involved in various scams. These include romance and investment schemes. Japanese nationals are reportedly among them.

Some testimonies suggest that many Chinese criminal organizations have set up bases in casinos and buildings owned by local power brokers. 

"That casino is run by a senator close to the government," a resident told me with a wry smile. "Chinese organizations are running scams there." 

He explained the situation, as he stood before a lavish casino in Poipet — a city in the northwest near the Thai border — while showing me around the area in late June.

Chinese former Premier Li Keqiang and Cambodian Prime Minister Hun Sen watch over the signing of the bilateral cooperation documents on February 11, 2023. (©Press and Quick Reaction Unit of Cambodia)

Criminal Haven in China's Orbit

In Poipet, a building where 29 Japanese nationals allegedly involved in fraud were detained in May drew attention. As with other hubs, there were whispers of collusion between Chinese organizations and powerful local figures who own that property.

It appears that a haven for criminals has been established in Cambodia, a crucial link in China's extensive Belt and Road Initiative.

But the rapid rise of fraud centers run by Chinese criminal organizations is not limited to Cambodia. Similar operations are spreading across other Southeast Asian countries, including Myanmar and Laos.

The United States-China Economic and Security Review Commission, a bipartisan advisory body to the US Congress, warned in a July report that criminal organizations based in Southeast Asia "steal tens of billions of dollars annually from people around the world." 

The report noted that the enterprise "rivals the global drug trade in scale and sophistication."

Crime In the BRI

So why are criminal organizations expanding in Southeast Asia? A key factor lies in the grandiose Belt and Road Initiative (BRI) that Chinese President Xi Jinping has promoted since 2013.

The BRI is intended to foster the development of infrastructure and expand trade in participating countries. At the same time, it attracts numerous Chinese companies and workers to those countries.

While projects such as commercial infrastructure and hotel construction advance with local government approval, criminal organizations infiltrate alongside them. Riding the flow of people and money, they quickly take root by forming collusive ties with influential local figures. 

Chinese Ambassador to Japan Wu Jianghao at a Belt and Road Initiative tenth anniversary symposium on October 13, 2023. (©Sankei by Yasuto Tanaka)

Southeast Asia's relatively lax entry requirements and weak regulatory oversight have allowed these organizations to operate with impunity.

China appears to be tacitly condoning these criminal organizations. The bipartisan committee's report cited one example: a former Chinese mafia boss who established the "World Hongmen History and Culture Association" in Cambodia. 

While involved in fraudulent activities, the association also served as a propaganda machine promoting the Xi administration's narratives of the "great rejuvenation of the Chinese nation" and Xi's "One China" principle.

United Front, Dark Networks

In recent years, China has also intensified its "united front work." It seeks to shape international public opinion in its favor by leveraging a network of more than 60 million overseas and ethnic Chinese. 

This effort reportedly includes criminal organizations that demonstrate loyalty to the Party, according to The Washington Post. It highlights a symbiotic relationship between Chinese authorities and organized crime groups.

Cambodia's Prime Minister Hun Manet (left), who succeeded his father Hun Sen, shakes hands with China's President Xi Jinping on September 15 at the Great Hall of the People in Beijing. (©Xinhua via Kyodo)

Fraud hubs, like those found by the Cambodian NGO, are fueling lawlessness and casting a dark shadow over Cambodia. In the southern city of Sihanoukville, vigilante groups formed by members of criminal organizations patrol the streets, creating areas that locals avoid. 

"You could get arrested just for walking around," a woman said with a weary sigh. "It used to be such a peaceful town…" 

Too Deep to Uproot

Since June, Prime Minister Hun Manet has launched a crackdown on criminal organizations. That has resulted in the arrest of more than 3,000 people across Cambodia. 

Yet, as local media outlets lament, the roots of these groups — deeply entrenched through opportunities created by the Belt and Road Initiative — remain strong. To that end, genuine reform becomes a distant prospect.

"'China money' has warped everything. Completely eradicating these criminal organizations will likely be impossible," the woman bemoaned.

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Author: Tomo Kuwamura, The Sankei Shimbun 

(Read this in Japanese)

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