The Kiribati Ministry of Commerce, Industry and Cooperatives is reported to have begun investigations into the compliance of businesses established by foreigners.
This follows concerns raised by a number of local businesspeople who allege that some Chinese people have failed to meet the criteria set out by the Foreign Investment Commission Act.
Our correspondent in Kiribati Taberannang Korauaba says many have been vocal after some Chinese people started businesses in partnership with locals.
Some argue that the locals are used in arrangements while not earning a single dollar in these ventures.