- The Golden Triangle’s City Built on Dirty Money - July 17, 2024
For decades, the Golden Triangle, a region between Thailand, Myanmar and Laos along the Mekong River, has been synonymous with opium production, organised crime, and rebel militias. In recent years, the Golden Triangle Special Economic Zone (SEZ) in the north of Laos has come under the control of Chinese casino mogul Zhao Wei, since his Hong Kong-registered company, Kings Romans, leased the land for 99 years.
Visitors to the zone have commented that it runs as a de-facto part of China. Access is generally from Thailand, where a boat crosses the Mekong River. Once through passport control, which Lao citizens are reportedly not allowed to cross, the road signs are in Chinese, the common currency is Renminbi, and the mobile network provider is China Mobile. The Laotian authorities seemingly have no authority here, as private militia from Myanmar conduct the policing.
Crime with Impunity
According to Radio Free Asia, hundreds of Lao women are trapped there in debt bondage. The report states that businesses hire women to work as barmaids or “chat girls” to convince casino visitors to invest in Kings Romans. During this process, the women rack up ever-increasing debts as their sales quotas are impossible to meet. To pay off this debt, they are then forced into prostitution.
When the International Crisis Group investigated activities in the SEZ, it discovered compelling evidence of animal trafficking. A team attempted to enter a location marked as a “zoo” on the map, but authorities refused entrance. An employee told the team it was a breeding centre for breeding bears and tigers, confirming reports made by the Environmental Investigation Agency. Visitors state that shops openly sell tiger bone wine around the town along with endangered species in the wet and dry markets, including Chinese giant salamanders, axolotl, and rare albino red-eared slider turtles.
China turns a blind eye to the illicit activities, and even goes as far as promoting Zhao Wei on state-run TV channels as a key figure in the development of Laos. More recently, the zone has become a thorn in the side of the Chinese government due to the proliferation of cyber-scam centres and human trafficking operations, with both affecting domestic security interests. In December 2023, Laotian authorities finally conducted a raid on the region, arresting 462 Chinese nationals and deporting them back to China.
The United States Treasury Department placed Zhao Wei and his associated “Transnational Criminal Organisation” on a sanctions list, accusing the TCO of engaging in drug trafficking, human trafficking, money laundering, bribery, and wildlife trafficking, through the Kings Romans Casino. It has also designated other connected entities across Laos, Thailand, and Hong Kong the same. Since 2014, Lao, Thai, and Chinese authorities have all reportedly traced seized narcotics (including heroin and methamphetamine) to the casino, and linked the distribution network to the United Wa State Army of Myanmar.
In consideration of these aspects, the existence of such a place presents huge problems for the entire region, both socially and geopolitically. Its strategic location, both on the Mekong River and wedged between the borders of Laos, Myanmar and Thailand, while also being close to China’s southwestern border, further exacerbates these concerns. The zone acts as a hub for organised crime and rebel groups to launder money, trade with each other, and operate with impunity.
The Lao government turns a blind eye as the province surrounding the zone goes from one of the country’s poorest, to one of its most well off. Regional authorities deny this stark array of evidence, highlighting concerns of corruption within the area. Instead, the priority is to let the SEZ continue to expand in scope and size, with the local airport potentially gaining an international terminal with direct flights to China.
Above all, Laos, Thailand, and China need a coordinated strategy and collaborative efforts to stop such activities and maintain regional stability. While money may be pouring into the area, it is in fact a ticking time bomb.
Suggested Readings:
Is an alleged drug kingpin from China investing millions in a port in Laos? CNN. 7 December 2020
Golden Triangle gambling zone the world’s worst SEZ, group says. The Diplomat. 30 March 2022
