August 11, 2022
"China's development, as I have observed since my arrival, is tremendous, surprising, and mind blowing."
- Patty Chen, Suriname's Ambassador to Beijing
Statement made in an interview with the Global Times
Good afternoon, and welcome back to another edition of the China-Latin America & Caribbean Dispatch. On deck this week: China's reaction in the region to Pelosi's trip to Taiwan, Uruguay approves a bilateral defense cooperation agreement, trade increases with the PRC, and the SVG PM visits Taipei.
China-LAC news is always tremendous, surprising, and mind-blowing. Well, not always. But it often can be! And that's why we're here, week-in, week-out, covering the latest news that might just blow your mind (or at least an eyebrow). If you have a friend or colleague who likes surprising and tremendous things, then be sure to forward them this email or have them click here to join the distribution list.
As always, if we got something wrong, or you have a comment or question, let us know!
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POLITICS & SOCIETY
PARAMARIBO - Suriname's ambassador to China, Patty Chen, sat down with the Global Times for an interview to discuss regional relations and to praise the Chinese government. (Global Times)
She praised the CCP and China's governance model, as well as the benefits of China's presence in the region, noting that "I don't anticipate instability and conflict to be caused by China's presence in the [LAC] region, given that China is known for not interfering in the domestic affairs of its partners in development."
What a load of hoopla. Obviously, ambassadors to a foreign country typically want to keep relations as strong as possible and might be willing to be a little overblown in their praise. But this example just continues to show how strong the Chinese-Surinamese relationship continues to be.
Other News:
- SLICK MESSAGING - President Xi sent a message of condolence to the president of Cuba regarding the fires in Matzanas, and the foreign ministry noted that the "Red Cross Society of China has decided to provide emergency humanitarian assistance to the Cuban Red Cross Society." (TeleSur) (Global Times)
- BACK ME UP - The Chinese Embassy in El Salvador reportedly sent a letter to the government asking them to defend China's view that Taiwan is a part of the PRC and to "strongly defend the basic rule of international relations of non-interference in internal affairs." (Bloomberg)
- NO SHOW - Unlike in Duque's inauguration, no major Chinese government representatives attended Petro's swearing-in in Colombia last week. (Cambio)
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DEFENSE & SECURITY
MONTEVIDEO - The Uruguayan congress approved a joint-defense cooperation agreement this past week. The agreement covers a variety of areas, including: "the exchange and cooperation in... research and acquisition of defense goods and services, logistical support in the area of international peacekeeping operations, and the promotion of combined exercises and training." (Mercopress)
The agreement had been originally signed in 2019 during the previous presidential administration.
Should the U.S. be freaking out yet? Probably not, since this agreement likely doesn't entail the stationing of troops or overseas bases in the Western Hemisphere. However, it does highlight that countries that are actively strengthening bilateral relations, like Uruguay, aren't just focused on the economic aspects of the relationship -- partnership with the PRC can mean a lot more.
Other News:
- CALL ME BEEP ME - The Chinese Ambassador to the Dominican Republic, Zhang Run, confirmed that officials from his government were working closely with local agencies to update the country's emergency call system "with donations of sophisticated equipment." (RC Noticias)
- WAR GAMES - Some sources suggest that Iran, Russia, and China are reportedly participating in war games in Venezuela with 33 other countries in an annually-held international war games. (Alamanar) (La Gaceta)
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FINANCE, TRADE & TECHNOLOGY
REGION - Several countries released export data from the first part of the year in the past week, showing a considerable increase in trade with the PRC. Mexico hit a record number of exports to China in the first five months of 2022, with $4.7 billion in goods going to the PRC, a 27% increase over the same period in 2021. (El Diario) The Dominican Republic's trade with the PRC also grew 90% to $4.3 billion in the 4 years since the two countries established diplomatic relations, according to the Chinese Ambassador. (El Dia)
Ecuador also had significantly increased trade with China in the first five months of 2022: China became Ecuador's largest trade partner in non-oil products, with $2.3 billion in trade between the two countries (compared to just $1.8 billion with the U.S.). (Expreso)
Is it a surprise? Not really, although note that none of these countries have FTA's with China (yet). There's clearly still more room to grow in the economic relationship with the PRC as the Chinese economy expands (albeit at a slower pace) and trade continues to liberalize on both sides of the Pacific.
Other News:
- A BAND-AID FOR RELATIONS - The Chinese embassy to Nicaragua donated 6 containers of 26 medical products, including "thermal cribs, ventilators, and defibrillators", to strengthen the national health system. (Que Pasa)
- STUDYING UP - The Hunanese Department of Commerce held a training course for an audience that included engineering professionals from the Cuban company Cementos Cienfuegos S.A., as well as professionals from Venezuela, Uruguay and Ecuador, on technical training as well as on "China's national political, economic, social and cultural conditions; society, culture." (Prensa Latina)
- FRUITY FUN - LAC exports of fruit, such as blueberries, to China continue to make up a large percentage of trade, with Chilean and Peruvian blueberries grabbing larger market shares in China. (Fresh Plaza)
- SWIP SWEG SWAP - The head of the Argentine central bank confirmed that his country is making use of its swap mechanism with the PRC to help stabilize their monetary policy. (TN)
- BACK TO BAIJIU - As Uruguayan and Chinese trade negotiators begin to hammer out a FTA, the two sides confirmed they are moving forward on a small phytosanitary agreement to allow for the export of Uruguayan sorghum to the PRC. (Que Pasa)
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INVESTMENT &
INFRASTRUCTURE
LA PAZ - Representatives from the Bolivian Ministries of Development Planning and of Mining and Metallurgy met virtually with the Chinese Ambassador to Bolivia and Chinese Ex-Im bank representatives to discuss the financing of a zinc refining facility. (La Razon)
The smelting and refining facility could cost over $300 million, according to a previous estimate by President Arce. It would complement the currently ongoing construction of the Mutún steel plant, which is also a joint project between the two countries.
Continuing to expand their business presence in Bolivia, three Chinese firms, CMEC, Jiangsu Geotogy & Engineering, and Sinohydro, are competing for a public tender to construct a water treatment plant that will allow the operation of the Industrial Lithium Carbonate Plant. (Bolivia.com)
What's next? Bolivia has had a very close economic relationship with China for over a decade now, ranging from building dams to roads to industrial facilities. As the country expands into the lithium-export space, expect the Chinese presence to further expand in the next few years.
Other News:
- BUILDING UP - Hong Kong-based furniture manufacturer Man Wah announced that it would be investing $200 million, and creating 4,000 jobs, to expand their industrial park in Nuevo León, Mexico. (El Economista)
- BUILDING OUT - A Caribbean/Chinese company, First Caribbean Marketing Company (FCMC), signed an agreement committing it to build a warehouse in the new Phoenix Industrial Park project in Trinidad and Tobago. (LoopNews)
- FIXING THE LEAKS - The National Cricket Stadium in Grenada needs some repairs done after a particularly violent storm, and they will reportedly be completed by some facet of the PRC government "through a special contractual arrangement", likely since the stadium was initially funded by the PRC. (LoopNews)
- UN-DAM-ING THE PROBLEM - Reportedly in one of her final acts as the Argentine Economics Minister, Silvina Batakis signed a memorandum to proceed on the construction of the Néstor Kirchner and Jorge Cepernic dams with nearly $5 billion in financing from three Chinese banks. (Analysis)
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TAIWAN
REGION - Reactions to U.S. Speaker of the House Nancy Pelosi's trip to Taiwan were varied across the region the week following the trip. A number of PRC embassies made statements or re-released MOFA's statement, including in Costa Rica, Mexico, El Salvador, Panama, Venezuela, Colombia, Ecuador, and Bolivia. Individual ambassadors countries like the Bahamas wrote op-eds condemning the trip.
Meanwhile, in Taiwan-recognizing countries, local officials condemned any conflict or tensions resulting from the trip. For example, Belize's Speaker of the House and Foreign Minister also both reiterated their support for the ROC, with the latter tweeting that "Belize unequivocably supports Taiwan and its people as they pursue peace development and international cooperation." Guatemala's and Paraguay's government also issued statements of support for Taiwan.
Some regional leaders also spoke about China-Taiwan-U.S. tension this past week. In a press conference, President Lopez Obrador of Mexico condemned any conflict between the U.S. and China resulting from Taiwan, arguing that it would further impoverish populations in the developing world. The governments of Dominica, Venezuela, as well as political parties in Ecuador, Uruguay, Bolivia, and other countries in the region issued statements condemning the visit.
Why do they care? Clearly, this isn't necessarily meant for a LAC-audience, but rather political elites on both side of the Pacific. For diplomats, it's likely a way to impress their bosses, while for LAC-officials it is a way to demonstrate their loyalty to their Asian diplomatic partner.
Other News:
- JET-LAG LOVER - St. Vincent and the Grenadines Prime Minister Ralph Gonsalves traveled to Taiwan and met with President Tsai last week to show support for the ROC during a tense period. (Reuters) (Caribbean National Weekly)
- CONGRESS CONNECTION - The head of the Honduran Congress, Luis Redondo, met with the Taiwanese Ambassador last week "to reaffirm the bonds of friendship between the two countries and strengthen parliamentary relations." (Canal 8)
- SECRET FRIENDS - A review by the newspaper Expansion found found while Mexico and Taiwan do not maintain formal diplomatic relations, they still have a deep and rich commercial relationship. (Expansion)
- THOU THAT SHALL NOT BE NAMED - A bill is working its way through the Costa Rican legislature that would rename the "Taiwanese Friendship Bridge", which was funded by Taiwan in 2003, in the country to remove the word Taiwan from the name to reflect Costa Rica's current relationship with the ROC and PRC. (Sup China)
- PEARL ANNIVERSARY - The Central American Bank for Economic Integration (CABEI) celebrated its 30th anniversary of relations with Taiwan on August 3, welcoming a delegation of Taiwanese officials that included the ROC finance minister and announcing a new $10 million program to support female entrepreneurs. (Noticias de Taiwan) (El Periodico)
- GREAT JOB WITH THAT WHOLE DEMOCRACY THING - The Taiwanese Embassy in St. Kitts congratulated the country on successful elections. (WriteUp24)
- BUSINESS TRIP - A trade mission of 12 Taiwanese companies and associations will be traveling to Paraguay this September to explore new business opportunities and to participate in the Invest Paraguay Forum. (5 Dias)
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NOTABLE ANALYSIS
- CALLING THEM HYPOCRITES - Jamaican economic journalist Norris McDonald argues that China's cooperation, especially with the BRI, offers an opportunity for economic development, while criticizing America by arguing that "the US is busy taking billions of China’s money while telling the poor nations of the world ‘to steer clear of China.'" (Jamaica Gleaner)
- BACKING THE TAIWAN-BACKERS - Writing for the Heritage Foundation, Anthony Kim argues that "It’s in the clear interest of Washington to welcome Guatemala’s continued, recommitted diplomatic engagement with Taiwan." (Heritage)
- LET'S NOT TAKE SIDES - Earl Bousquet writes in the St. Lucia Voice that Caribbean countries should avoid taking sides in a potential conflict between China and Taiwan. (The Voice)
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