Chinese charter city in the Marshall Islands?
On a tropical Pacific atoll irradiated by U.S. nuclear testing and twice since evacuated because of the fallout, Cary Yan and Gina Zhou planned to create a unique paradise for Chinese investors.
It would have a port, luxurious beachfront homes, a casino, its own cryptocurrency, and a full suite of services for offshore companies registered in Rongelap. With 420 miles of sea between it and the capital, Majuro, it would be relatively free of oversight.
All the couple had to do to make this a reality was bribe a swath of politicians in the Marshall Islands, once occupied by the United States and now a crucial U.S. ally in the Pacific, to pass laws to enable the creation of a “special administrative region” — the same classification given to the Chinese territories of Hong Kong and Macao.
The venture is not on track to succeed, and the two are now awaiting sentencing. The entire story reflects one of my broader worries about charter cities. The most powerful nations in the world, in this case the United States, do not necessarily favor small enclaves that possibly can be turned to favor their rivals. In other words, the relevant hegemon here did not at all support the charter city plan.