China has managed to use its increasing economic muscle - and thereby global clout - to persuade yet another country to recognize it over Taiwan. Costa Rican President Oscar Arias announced on June 6 that his country has broken diplomatic ties with Taiwan and established relations with China, pointing out that Costa Rica needed to strengthen ties with China in order to attract foreign investment. This follows a string of successes for China, who refuse to have diplomatic ties with nations that recognize Taiwan, regarding it as a breakaway republic. During the late 1960s, Taiwan had full relations with 67 countries, but Chinese pressure has led to this figure dropping almost threefold to just 24 states today.
China's success does not really come as a huge surprise, given the fact that China is now the Central American nation's top trading partner, buying more than $1 billion worth of Costa Rican exports in 2006. The fear is that after Costa Rica's decision, other nations such as Nicaragua, Panama and Paraguay will follow suit, leaving Taiwan practically abandoned in Latin America. After the Dominican Republic, Haiti, St. Kitts and Nevis and St. Vincent and the Grenadines switched diplomatic recognition from Taiwan to China in 2004 and Costa Rica did the same on Wednesday, today only Paraguay, Panama, Nicaragua, El Salvador, Honduras and Guatemala officially recognize Taiwan.
In the last couple of years, China has been particularly active in Latin America, not only to shore up its political influence, but also to secure natural resources that are crucial to sustain the country's red hot economy. Venezuela is particularly keen to court the Chinese with oil, seeing the country as the perfect escape from the grip of the "evil American empire." Brazil, Ecuador, Bolivia, Argentina, Chile, Peru and even Mexico are also seeing large increases in trade and deals (particularly in oil and gas exploration) with China. According to the Inter-American Dialogue, Chinese imports from Latin America have grown more than sixfold, at a pace of some 60% per year, to an estimated $50 billion in 2005. What's more, Chinese investment in Latin America represents half of the country's foreign investment overseas, promising to increase it from $6.5 billion in 2004 to $100 billion by 2014.
US trade with Latin America is still almost 10 times larger, but given the growth of Chinese trade with the region and the severe hostility the Americans encounter in a number of Latin American countries, this is certainly an issue that the need to monitor closely. China is rapidly encroaching upon America's backyard. China's dealings in the region are not limited to securing energy needs, other natural resources and isolating Taiwan. The business of selling of arms and technology to the region (with Venezuela being a key buyer) is also flourishing, while cooperative aerospace deals are being forged with Brazil and possibly key intelligence-gathering facilities in Cuba are being used by the Chinese to intercept U.S. communications.
China's success does not really come as a huge surprise, given the fact that China is now the Central American nation's top trading partner, buying more than $1 billion worth of Costa Rican exports in 2006. The fear is that after Costa Rica's decision, other nations such as Nicaragua, Panama and Paraguay will follow suit, leaving Taiwan practically abandoned in Latin America. After the Dominican Republic, Haiti, St. Kitts and Nevis and St. Vincent and the Grenadines switched diplomatic recognition from Taiwan to China in 2004 and Costa Rica did the same on Wednesday, today only Paraguay, Panama, Nicaragua, El Salvador, Honduras and Guatemala officially recognize Taiwan.
In the last couple of years, China has been particularly active in Latin America, not only to shore up its political influence, but also to secure natural resources that are crucial to sustain the country's red hot economy. Venezuela is particularly keen to court the Chinese with oil, seeing the country as the perfect escape from the grip of the "evil American empire." Brazil, Ecuador, Bolivia, Argentina, Chile, Peru and even Mexico are also seeing large increases in trade and deals (particularly in oil and gas exploration) with China. According to the Inter-American Dialogue, Chinese imports from Latin America have grown more than sixfold, at a pace of some 60% per year, to an estimated $50 billion in 2005. What's more, Chinese investment in Latin America represents half of the country's foreign investment overseas, promising to increase it from $6.5 billion in 2004 to $100 billion by 2014.
US trade with Latin America is still almost 10 times larger, but given the growth of Chinese trade with the region and the severe hostility the Americans encounter in a number of Latin American countries, this is certainly an issue that the need to monitor closely. China is rapidly encroaching upon America's backyard. China's dealings in the region are not limited to securing energy needs, other natural resources and isolating Taiwan. The business of selling of arms and technology to the region (with Venezuela being a key buyer) is also flourishing, while cooperative aerospace deals are being forged with Brazil and possibly key intelligence-gathering facilities in Cuba are being used by the Chinese to intercept U.S. communications.
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