China Increasing Ties to CentAm

CentAm government are seeing increased economic and commercial ties to China following improved diplomatic relations which are beginning to bear fruit. Costa Rica boasts a $100m new arena deemed a “gift” from the Chinese government since the two countries established diplomatic relations in 2007. The world’s second largest economy is beginning to make its way into El Salvador, Guatemala, Honduras, Nicaragua and Panama as well. In October, El Salvador hosted its first-ever Chinese business symposium in San Salvador, with 52 Chinese companies and 150 local firms attending. “We hope that this event represents the beginning of a much improved commercial relationship between El Salvador and the Republic of China,” says Manuel Flores, president of the Salvadorian Friendship Association with China. “We consume infinite amounts of Chinese products, while they know very little about ours. We hope to begin to change that,” he adds. Meanwhile, in September China’s state-owned energy company Sinohydro signed an “understanding agreement” with the government of Honduras to manage and operate construction of 3 hydroelectric plants in western Honduras known as Patuca I, II and III.