August 31, 2022
"China's new development philosophy deserves much praise and chimes in with our national vision of strengthening the building of its capability of innovative, diverse and sustainable development"
- T&T's Ambassador to China, Analisa Low
Good morning, and welcome back to another edition of the China-Latin America & Caribbean Dispatch. On deck this week: another China-CELAC forum, more investment in Argentine lithium, political agreements in the Bahamas, praise from El Salvador, and support to help the Venezuelans to avoid US sanctions.
Just to chime-in, there's one philosophy developed at this newsletter that might deserve much praise. It's our vision to strengthen the capacity building of fellow analysts checking out C-LAC relations. If someone you know is interested in an innovative, diverse, and sustainable understanding of China-Taiwan-LAC ties, 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
THE INTERWEBS - The first China-CELAC forum on "Cooperation in Disaster Risk Management" was held virtually on August 25, with participation being led by the Chinese minister for Emergency Management. (El 19 Digital) (CGTN)
The Cubans used the meeting to complain about the U.S. embargo of the island, arguing that the embargo "hinders the acquisition of the technology and financing essential to advance" disaster risk management. (Granma) Meanwhile, some Caribbean countries reportedly expressed hope that the initiative would directly address some of their concerns. (Loopnews)
While no official list of attending countries appeared online, representatives from a range of nations, including Argentina, Nicaragua, Antigua and Barbuda, Dominica, Grenada, Guyana, Trinidad and Tobago, and Suriname were in attendance.
Who knew you could do hurricane prep in a Zoom seminar? Well, they probably aren't. Maybe there was (or will be) some good know-how spread in this forum, but from the favorable reporting in some of the press, it seems more like a good-will exercise to use the China-CELAC forum to touch on the issues countries in the region care the most about.
Other News:
- SISTER ACT - The Prime Minister of the Bahamas held a signing ceremony with representatives from Hunan province on a sister city agreement with Grand Bahama and Hunan, as well as an agriculture cooperation agreement. (EW News)
- EARNING A GOLD STAR - The Argentine news agency Télam won an award from the Public Diplomacy Association of China for their reporting on a program called "Near the East: The green future of mobility" about Argentina-China cooperation. (Vive La Plata)
- SPECIAL LESSONS - The Nicaraguan ministry of education signed the "Cooperation Agreement on the School Innovation Project of Special Education of Friendship China-Nicaragua" to rehabilitate a special education school in the city of Leon. (NIA)
- MONTHLY MEETING - Mexico's Chamber of Deputies inaugurated a new seminar, focused on China, that will bring together "academics, economists, diplomats and experts" every month to "better understand China." (CGTN)
- SPECIAL MEETING - President Fernandez of Argentina met with leaders from the Chinese firm CITIC to discuss cooperation in "strategic infrastructure works. (La Prensa)
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FINANCE, TRADE & TECHNOLOGY
CARACAS - A Chinese state-owned enterprise, China Aerospace Science and Industry Corp (CASIC), has been transporting Venezuelan oil to China to help the South American country evade U.S. sanctions. Previously, China National Petroleum Corp (CNPC) had been transporting fuel until sanctions tighten in 2019, barring the company from continuing its shipments. (America Economia/Reuters)
The defense-related firm has so far transported 25 million barrels of oil worth $1.5 billion. The funds have reportedly largely been used to pay back Venezuela's debts to the PRC.
The folks at Treasury certainly won't be happy about that. Really not much more to say than that. Even though Chinese lending to Venezuela appears to be dwindling (which, who can blame them given Venezuela's finances), it should not be in doubt that Beijing remains firmly in Caracas's corner.
Other News:
- BUY THE DIP - Bank of America projected that if Mexico receives more foreign investment due to companies outsourcing from China, the peso could strengthen considerably. (Bloomberg)
- 第一第二 - Initial trade data came out of Bolivia this week showing that the country exported 44% of its $23.5 million in lithium exports to Russia, 40% to China, and 16% to the U.S. (La Razon)
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INVESTMENT &
INFRASTRUCTURE
SAN SALVADOR - President Bukele of El Salvador inaugurated a new amusement park called "Sunset Park" at Puerto de la Libertad, part of the "Surf City" complex under development, which had been a donation from the PRC government as the result of Bukele's trip to Beijing in 2019. The Chinese Ambassador to San Salvador was also present at the ceremony. (People's Daily)
Noting the flexibility of the Chinese government in working with him, in contrast to increasingly tense relations with the U.S. in his remarks he also stated that "Chinese cooperation without conditions, and I'm not saying it for making propaganda to them because I'm sure they don't need it, but it's the reality, at least we've never been tied up." (DW)
China? Not tying political conditions to its investments, financing, and donations? Color us shocked. While its unclear (and seems a bit unlikely) that the PRC actively encourages governments to take an authoritarian turn, it shouldn't be in doubt that they're perfectly fine helping prop up the less-than-democratic. Especially when it annoys Washington.
Other News:
- PUENTES TO THE PLAYA - The Spanish firm Grupo Puentes, which is now owned by China Road and Bridge Corporation, won a $250 million bid to build the 7.5 km Corredor de las Playas highway in Panama. (La Voz de Galicia)
- MAKING A HOUSE A HOME - China's International Development Cooperation Agency is building 920 new houses in Managua, Nicaragua. (90 Grados)
- MACHINE MAKING MACHINES - BUT Construction Machinery, a Chinese firm, opened up a new $8 million manufacturing plant in Nuevo León, Mexico, while it plans to open a second $12 million plant in the near future. (Mexico Industry)
- WHITE GOLD - The governor of Catamarca province and the Argentine ambassador to China signed an agreement with the firm JinYuan to transfer technology and provide assistance so that the province can export 50,000 tons (or $3.5 billion) of lithium from the Argentine province in the next two years. (Ambito)
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TAIWAN
Other News:
- THANK YOU NOTE - The Taiwanese Ministry of Foreign Affairs sent a thank you note to the 12 diplomatic allies that signed St. Vincent and the Grenadine's letter at the UN condemning China's reaction to Nancy Pelosi's trip to Taiwan. (Breaking Belize News)
- NICE TO MEET YOU - The Foreign Minister of Guatemala, Mario Búcaro, met with President Tsai Ing-wen in Taipei and remarked that "Guatemala will always support Taiwan". (America Economia) (VOA)
- SCAN AND FIND OUT - Taiwan secured four French-made scanners used for customs and border security in cooperation with the the United States for Paraguay, which are reportedly needed to ensure high-quality meat exports to countries like the U.S. (La Nacion)
- WEIRD SCIENCE - Members of the Belizean Ministry of Economic Development met with the Taiwanese ambassador to discuss possible collaboration with the Taiwan International Cooperation and Development Fund’s (TaiwanICDF) Impact Frontier Lab Project (IF Lab). (Breaking Belize News)
- HELPING OUT - Taiwanese foundation Simply Help donated a batch of biosafety equipment to protect children to the Honduran Social Development Ministry, which was promoted by the local Taiwanese embassy. (TNH)
- TRADING IT ALL AWAY - An analysis of Paraguay's trade with China and Taiwan found that Paraguay imports two orders of magnitude more from the PRC than the ROC, but exports $158 million in goods to the ROC, compared to $30 million to the PRC. (ABC)
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NOTABLE ANALYSIS
- STABBED IN THE BACK(YARD) - Evan Ellis argues that in recent years, Mexico is "pursuing policies that are expanding options for [the PRC], causing serious strategic implications for the United States and the region." (Global Americans)
- SLIP SLIDING AWAY - Writing that "much of [Latin America] has slipped out of [the United States'] orbit.", and highlighting an interesting anecdote about visas and the U.S. DHS in Chile, Eduardo Porter suggests that the U.S. needs to "re-engage with its neighbors in the Western Hemisphere, offering an alternative to the Chinese opportunity in terms of trade and investment." (Bloomberg)
- ALL EXPENSE VACATION - Bruce Zagaris analyzes the recent MOU on tourism cooperation signed by the Cuban and Chinese governments and its significance "in the context of economic policies of the Caribbean, Chinese, and United States governments, as well as other stakeholders." (Global Americans)
- TRADING IT ALL AWAY - Given ongoing Chinese negotiations in five Latin American countries (Ecuador, Colombia, Panama, Nicaragua, and Uruguay), Ralph Jennings reports that "China stands to secure prized natural resources while vying with the United States for allies" and that "The US is seen to have ‘effectively lost its key role with every country south of Costa Rica’." (SCMP)
- IT'S EASY BEING GREEN - Writing in the Portuguese edition of the People's Daily, Leonardo Sobreira argues that, in the context of the Belt and Road Initiative, "the ecological credentials of Chinese investments are the main key to unlocking infrastructure projects in Brazil." (People's Daily)
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