china in the caribbean 2007 2011

8/2/2019 China in the Caribbean 2007 2011

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Collection* of Internet articles (2007-2011) on:

Chinas growing presence in the Caribbean

Contents

Chinas presence in Dominica

By: Sir Ronald Sanders, April 28, 2011

p. 2

Why is China spending billions in the Caribbean?

By: Ezra Fieser, GlobalPost, April 22, 2011

4

With Aid and Migrants, China Expands Its Presence in a South American Nation

By Simon Tomero, New York Times, April 10, 2011

6

Guyana, China engage in multiple agreements, from health care to training

The Guyana Press, March 31, 2011

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The Growing Economic Presence of China in the Caribbean (Weblink)

By: Richard L. Bernal, January 2011

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China moves to deepen ties

By: Louis B. Homer, Trinidad Express, January 23, 2011

9

The Dragon in the Caribbean: China-CARICOM Economic Relations (Abstract)

By: Richard L. Bernal, 2010

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China Statement to Caribbean Development Bank BOG-40

By: Mr. Du Jinfu, May 2010

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Jamaica, China sign US$500m investment pact

Jamaica Gleaner, February 5, 2010

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China in the Caribbean: The New Big Brother

By: Daniel Erikson, The Jamestown Foundation, December 16, 2009

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Chinas influence growing in Latin America and the Caribbean

By Dr. Odeen Ishmael, July 1, 2009

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Chinas Policy Paper on Latin America and the Caribbean

By: Sebastian Castaneda, Research Fellow, Council on Hemispheric Affairs

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Chinas Policy Paper on Latin America and the Caribbean (Weblink)

By: Government of the Peoples Republic of China, November 5, 2008

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Settling the China Question: A Caribbean Challenge

By: Sir Ronald Sanders, May 5, 2008

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China pledges more support to Caribbean region

From: Xinhua, September 9, 2007

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* This collection is limited to: (1) recent articles (2007-2011), (2) in the English language, (3) concerning

mainly the CARICOM subregion.


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China's presence in Dominica

By: Sir Ronald Sanders, April 28, 2011

http://www.caribbean360.com/index.php/opinion/389630.html#axzz1L32altQl

http://www.caribbeannewsnow.com/topstory-Commentary%3A--China%27s-presence-in-Dominica-6189.html

The Caribbean island of Dominica is fast becoming a living example of the way that China has

strengthened its influence by moving into countries that the United States and other Western

nations have neglected.

According to a white paper on China's foreign aid issued by Chinas State Council on April 21, by the

end of 2009 China had aided 161 countries and more than 30 international and regional

organizations, including 123 developing countries. Of them, 30 are in Asia, 51 in Africa, 18 in Latin

America and the Caribbean, 12 in Oceania and 12 in Eastern Europe. Asia and Africa, home to the

largest poor population, have got about 80% of China's foreign aid.

While the US has been preoccupied with wars in Afghanistan and Iraq, and the so-called war onterror, paying little attention to its immediate neighbourhood, the Chinese have established a

presence throughout the Caribbean that, in large part, is regarded as beneficial to the people.

In Dominicas case, in 2004 the government there broke long-held diplomatic relations with Taiwan

to recognize the Peoples Republic of China and sign-on to a policy of one China the code for

agreeing with the Chinese government that there is only "One China" and Taiwan is an inalienable

part of it.

On the establishment of diplomatic relations, the Chinese promised to undertake infrastructural

development projects totalling over US$100 million all of it grants. Four projects were specifically

identified: a sports stadium; a new grammar school; the rehabilitation of the major road connectingthe capital, Roseau, to the second major town, Portsmouth; and the rehabilitation of the islands

major medical facility, the Princess Margaret Hospital.

The Chinese have, so far, fulfilled their undertakings on three of these projects. The stadium is built

and in use, two phases of the school are complete, and work has started on the Roseau-Portsmouth

road including the construction of miles of wall along the sea to help contain coastal erosion. Only

the hospital project is pending and no one doubts that the Chinese will fulfil that commitment.

It should be pointed out that European Union (EU) is also helping with the rehabilitation and

widening of the road from Dominicas Melville Hall Airport to Roseau.

A significant difference in the EU and Chinese road projects is that the EU is employing Dominican

workers while the Chinese use Chinese labour exclusively. While it might have been felt that the

local population might have favoured the EU project, employing local labour, over the Chinese

project that employs only Chinese, this is seemingly not the case.

Albeit a small number of people, asked about the Chinese not employing local labour, responded by

saying that they were more interested in the projects, particularly the road, sea wall and hospital

than they were in the jobs. They added that they were getting the projects for free.

Of course the latter observation is not entirely true. In return for their economic assistance, the

Chinese government secures a one-China policy from the Dominican government in international

organisations. This support is replicated from all the other small, Caribbean countries to which China

provides similar help. The isolation of Taiwan and its non-recognition as a state continues to be an


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important element of Chinas foreign policy. But, it may well be that, in the not too distant future,

the Chinese government will insist on support for other and new aspects of both its domestic and

foreign policy.

In fairness, it should be noted that in a White Paper on Foreign Aid, the Chinese government has

listed as one of its Eight Principles for economic aid and technical assistance to other countries thatthe Chinese government always bases itself on the principle of equality and mutual benefit in

providing aid to other countries. It never regards such aid as a kind of unilateral alms but as

something mutual. China has been declaring that position since 1964.

Another consequence of relations with China is a gradual influx of Chinese into the local population.

It is striking that far more retail shops in Roseau are now operated by Chinese than used to be the

case. However, while this competition may trouble local retailers, people in the street point to less

expensive products sold by the Chinese that they find affordable. And, in any event, while the

number of Chinese retailers and food outlets is growing, the overall Chinese population is not yet

large enough to create an outcry.

If China is welcome in Dominica and other small Caribbean countries, it is because China has filled a

void left by the United States and other Western nations. Over the last decade, US assistance to the

Caribbean region has dwindled except in the area of interest to the US security including drug

trafficking. Little attention has been paid to the interests of the region for infrastructural

development, improving education and health facilities, and laying the foundations for investment

that could produce employment and technical know-how.

Canada provided US$1.82 million from 2008 to 2009 for projects, but its development agency, CIDA,

notes that there are no long term bilateral projects planned in this country.

The EU collectively stands out, among Western countries, as maintaining assistance to Dominica.That assistance goes beyond resurfacing the airport road to include a range of infrastructural

projects, including improvement of the Melville Hall Airport. EU money also provides budgetary

support to the Dominica government. But, while EU support has undoubtedly contributed to

Dominicas welfare, the islands loss of its preferential banana market in the EU significantly hurt its

economy and put hundreds of small farmers out of business.

The difference between the EU and China, is that the EU does not tie its aid to support for EU foreign

policy an advantage, perhaps, in dealing with a collective of 27 nations whose policies are not

directed by the interests of any one nation.

For all this, Dominicas physical infrastructure - roads and bridges has made great strides, and it ishelping the countrys economy. Poverty fell from 39 per cent in 2003 to 28.8 per cent in 2009, and

absolute poverty declined from 10 per cent in 2003 to 3.1 per cent in 2009. However, the

International Monetary Fund has observed that more than 30 per cent of the labour force has

emigrated, and per capita GDP of about US$4,931 is low.

Nonetheless, Dominica is an unspoiled and naturally beautiful country with all the potential of

becoming the worlds leading Eco-tourism destination. It is to that potential that this column will

turn next week.

Sir Ronald Sanders is a business executive and former Caribbean diplomat who publishes widely on

small states in the global community. Reponses to: www.sirronaldsanders.com


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Why is China spending billions in the Caribbean?

By: Ezra Fieser, GlobalPost (Boston, MA, USA), April 22, 2011

http://www.globalpost.com/dispatch/news/regions/americas/110325/china-caribbean-investment-tourism

The Caribbean lacks commodities, it's not a major producer of raw materials and it has relativelylittle buying power. Yet China is investing billions there.

Santo Domingo, Dominican Republic After the tiny Caribbean island of Grenada severed

diplomatic ties with Taiwan in 2005, it received a token of appreciation from the mainland Chinese

government: a $55 million cricket stadium.

It was part of $132 million China doled out to Caribbean countries in aid and soft loans in the years

leading up to the 2007 Cricket World Cup. At the time, the investment was seen as a not-so-subtle

reward to countries that had broken off formal relations with Taipei in favor of Beijing.

Ever since, China has made that sum look like pittance.The Beijing government and private Chinese corporations are spending billions in the Caribbean,

building major tourism projects, financing roads and ports and buying companies all of which are

helping open new markets for Chinese products. The onslaught has cash-strapped Caribbean

governments simultaneously praising China as a welcome benefactor and questioning what the

country wants in exchange.

Nearly every island in the Caribbean, from the smallest on up, currently has a substantial

investment from China, said David Jessop, managing director of the Caribbean Council, a London-

based consultancy that works with Caribbean governments. It seems that what nobody knows is

what is motivating China.

The total investment is difficult to quantify. Chinas Ministry of Commerce reported that foreign

direct investment in Caribbean countries by Chinese firms totaled nearly $7 billion in 2009, a more

than 300 percent increase from the 2004 foreign direct investment of $1.7 billion. Those figures are

somewhat misleading because of Chinese use of Caribbean tax havens such as the Cayman

Islands, which received $5.3 billion in Chinese foreign direct investment in 2009.

That aside, Caribbean islands have clearly been the recipients of investment by both Chinese firms

and the government of the Peoples Republic of China, which is financing some of the Caribbean's

most notable, and largest, projects.

The boldest broke ground last month: The Chinese government's Export-Import Bank is putting $2.4billion toward the construction of a 3,800-room resort in the Bahamas that will boast the largest

casino in the Caribbean. Roughly 5,000 Chinese workers will be brought in to construct the Baha Mar

resort on Cable Beach.

Others projects recently agreed to or completed by Chinese firms or the government include:

A 2011 commitment by Beijing to build a $600 million deep-sea harbor, highway and port inSuriname that will link the country to its natural resource rich southern neighbor, Brazil.

A $462 million cash infusion in a stalled beachfront resort, known as Punta Perla, on theDominican Republic's east coast. Dominican Minister of Tourism Francisco Javier Garca

Fernandez said he hoped the agreement would bring more investment from China to theCaribbeans most visited country.


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The construction and operation of a $1 billion container port in Freeport, the Bahamas, just 60miles from Florida, by Hong Kong-based conglomerate Hutchison Whampoa Ltd.

A $17 million cricket stadium and $122 million in economic assistance from the Chinesegovernment to Dominica, a country of less than 73,000 people and less than one-fifth the size of

Rhode Island.

A $100 million purchase of a majority stake in Omai Bauxite Mining from the government ofGuyana by Chinese mining company Bosai Minerals Group. Bauxite is a sedimentary rock from

which aluminum is extracted.

The construction of Trinidad & Tobago's prime minister's official residence and the NationalAcademy for the Performing Arts by the Shanghai Construction Co.

The number and magnitude of investments has left some mystified.

At a recent dinner between Caribbean leaders and a Chinese delegation, Jamaican officials asked,

What does China want from us? a person who was at the meeting told GlobalPost. Thats the big

question that everyone has about this: Why?

Caribbean governments have welcomed the investment particularly the development aid

partially because other sources have dried up. For example, aid from the United States to members

of CARICOM a bloc of 15 Caribbean states and five associate Caribbean countries has been

falling since the 1980s, said Richard Bernal, former Jamaican ambassador to the U.S. and current

director for the Caribbean at the Inter-American Development Bank in Washington.

What you are seeing in the Caribbean from China was mainly economic aid at first and now its

starting to diversify into other areas, like tourism," he said.

Bernal believes China's motivation for targeting the Caribbean is diplomatic.

There are few countries around the world that have maintained ties with Taiwan, and 12 of themare in Central America or the Caribbean, he said. Of the 23 countries to keep formal diplomatic ties

with Taipei, six are in the Caribbean: Belize, the Dominican Republic, Haiti, St. Lucia, St. Kitts & Nevis,

and St. Vincent.

Chinas ambassador to Barbados, Wei Qiang, told GlobalPost that China has no interest in competing

with other world powers in the Caribbean. Rather, it sees the islands as fellow developing countries

and potential partners.

The Caribbean countries form an important part of the developing countries world, so to speak.

One pillar of Chinas foreign policy is to increase the unity with fellow developing countries. In that

sense, the Caribbean is a fundamental part of that strategy, he said.

But it appears China has received little in return. Unlike other regions that China has targeted, like

Africa and South America, the Caribbean largely lacks the commodities the rising superpower craves.

The Caribbean is not a major producer of raw materials or food. Tourism is almost universally the

economic driver.

And with relatively little buying power the total population of the 39 islands is about 40 million,

about 3 percent of Chinas population the Caribbean will not be a major importer of Chinas

goods.

Take Grenada. Among the Spice Islands largest exports are nutmeg, cloves, ginger and cinnamon,hardly the basis of the Chinese economic expansion. Its population is under 110,000. China has 655

cities of at least 100,000 people, according to a 2010 report by Deloitte.


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Yet, the island has seen an influx of Chinese money since the building of the cricket stadium in 2007.

The Chinese government and private companies are stepping in finance projects, big projects, that

were stalled due to the recession, said Richard Simon, press secretary to Prime Minister Tillman

Thomas.

Simon could not name the projects because the sides are still negotiating terms. We believe that

the relationship with the Peoples Republic of China can only grow. China will be the main country to

deal with going forward, he said.

Aside from those major investments, Simon said Chinese business owners are opening convenience

stores and restaurants. On the streets, youre seeing a presence that you didnt see just a few years

ago.

The warming relationship has benefited Chinese companies, Ambassador Qiang said, but these are

small markets and small countries and we dont have huge amounts of trade in terms of volume.From the point of view of diversification of our foreign trade partners, we think all these markets are

worth working on as far as we can.

Residents of the islands seem to have a different take. Tomas Lora, who drives a cab in Santo

Domingo, Dominican Republic, said a few months ago the company he drives for upgraded its

vehicles to a fleet that looks and rides like a Toyota. Its not, its a Chinese car, he said. You

wouldnt know the difference because it looks like a Corolla. But they say it costs about half as much

as a Toyota.

Youre seeing Chinese products everywhere in the last few years, he said. Its all Made in China.

Also on GlobalPost:

China considers building rival to Panama Canal

Colombia and China are in talks about building a so-called dry canal. The project would consist of about

250 miles of railroad linking Colombias Pacific coast to a new Atlantic port that would be built near the

city of Cartagena.

February 22, 2011, http://www.globalpost.com/dispatch/china/110221/panama-canal-trade-china

With Aid and Migrants, China Expands Its Presence in a South American Nation

By Simon Tomero, New York Times, April 10, 2011

http://www.nytimes.com/2011/04/11/world/americas/11suriname.html?_r=1&emc=eta1

Ranu Abhelakh contributed reporting. A version of this article appeared in print on April 11, 2011, on page A4

of the New York edition

Paramaribo, Suriname The Foreign Ministrys elegant new headquarters here is a gift from the

Chinese government. Chinese signs on hundreds of businesses, from casinos to grocery shops and

furniture stores, beckon the residents of this capital. Chinese work crews are paving roads cutting

through the jungle.

Anchored by a surge in immigration to this country since the 1990s, and smoothed with gifts of aid

and low-interest loans, China has quietly but surely established a foothold in Suriname, a tiny corner

of South America that is often an afterthought even for its neighbors.


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While the economic aid has certainly been welcome in Suriname, formerly known as Dutch Guiana,

the growing political and demographic profile of the Chinese here has created concerns, ranging

from xenophobic calls from some political leaders here to investigate what they call a Chinese

invasion to more tempered efforts to decipher what effect Chinas rising influence will have on a

country that is already distant linguistically and culturally from the rest of South America.

Whats next, Chinese Guiana? asked John Gimlette, a Briton whose book, Wild Coast, about the

forgotten corner of the world on South Americas northeastern shoulder Guyana, French Guiana

and Suriname was published this year.

China, which has built an embassy compound here that dwarfs the aging United States Embassy,

insists that it has no plans to make Suriname into a de facto colony. Instead, China portrays its

growing clout here as a reflection of solidarity with another developing nation.

Still, Chinese officials acknowledge that Suriname, which is about the size of Florida but with a much

smaller population, about 500,000, is rich in potential. Suriname is a lucky country, such small

population, so much land, said Yuan Nansheng, the Chinese ambassador to Suriname, in aninterview.

China, which enjoyed warm ties with previous Surinamese leaders, has also nurtured a close

relationship with President Desi Bouterse, a controversial figure who until his election by Parliament

last year was a fugitive from Interpol because of a 1999 cocaine trafficking conviction in the

Netherlands.

Mr. Yuan said that he met with Mr. Bouterse at least once a month, about the same pace of

meetings he had with Robert Mugabe, the president of Zimbabwe, where he served as ambassador

before coming to Suriname.

Mr. Yuan said China had no problem with the questions surrounding Mr. Bouterses past, even as the

president also remains on trial for the killing of 15 top opponents in the 1980s, when he installed a

military government here after taking part in a coup. Of course, we would like to invite Mr.

Bouterse to China, Mr. Yuan said.

Meanwhile, though precise figures are hard to obtain, China is also thought to have emerged as the

top provider of aid to Suriname after the Netherlands conveniently ended important aid

disbursements here around the time of Mr. Bouterses election last year.

Aside from the new Foreign Ministry building, designed and built by Chinese companies, Chinas aid

to Suriname includes military assistance, construction of low-income housing, a plan to deriverenewable energy from rice husks, help for shrimp farming and an upgrade of the state television

network.

Chinas expanded presence can easily be glimpsed just by driving out of Paramaribo into the

countryside. Chinese laborers from one company, China Dalian International, which is upgrading

Surinames roads, toil under the hot sun. They live in roadside camps carved out of surrounding

forest.

In parts of Suriname, concerns over whether some Chinese laborers illegally stay past the end of

their visas has led to debate over whether Chinese companies should be allowed to bring their own

workers to the country, possibly depriving some Surinamese of jobs.


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In one example, a Chinese palm oil project in the eastern province of Marowijne prompted calls by

Ronnie Brunswijk, a leader of Surinames Maroons, who are descended from escaped slaves, for

Chinese employment in the area to be limited to management positions.

More broadly, the arrival over the past two decades of thousands of new Chinese immigrants is

generating debate over the influxs effect.

Some here see positive results. They invest in every corner of the country, said Noel Hassankhan, a

restaurant owner, referring to Chinese food stores. They offer an assortment of products, cheap

prices, and stay open until late in the evening.

Estimates vary over the numbers of Chinese now in Suriname, but Chinas embassy puts the figure at

about 40,000, or nearly 10 percent of the population, including legal and illegal migrants. Others,

citing scandals over illegally obtained residence permits, say the numbers could be higher.

As in other parts of the world that have recently attracted Chinese immigrants, notably in Africa,

many of the new arrivals are traders or small-business owners. In parts of Paramaribo and towns inthe interior, Chinese food stores can now be found on nearly every block.

These immigrants face numerous challenges. Many opt to bypass Dutch, the official language,

communicating with customers and employees in Sranan Tongo, a Creole language that makes

heavy use of English. Chinese shop owners and their families are also exposed to violent crime,

including robbery and murder.

We need the steel bars to protect us, said Lin Yubo, 25, the Chinese owner of a general store in

Atjoni, a village in the interior. He and his wife, who arrived in Suriname five years ago, live in their

store behind a metal barricade. This is life in the bush, he said.

Surinames growing Chinese community supports two daily newspapers and a new television station

with 15 employees that broadcasts each day in Mandarin. Suriname is a gateway to both South

America and the Caribbean, so its Chinese population has grown fast, said Thomson Cheung, 57,

the stations director, who came to Suriname in the 1970s.

Chinese emigration to Suriname is nothing new. The first Chinese contract laborers arrived in the

mid-19th century, and many Chinese in later generations intermarried with mixed-race Creoles.

But the recent influx of thousands more has been more notable, in part, because many of the new

arrivals are visibly involved in commerce, standing in contrast to Brazilians, Surinames other fast-

growing immigrant group, who work largely at remote gold mines in the interior.

Some immigration specialists, citing estimates for Chinese immigration elsewhere in South America,

say concerns over Chinas influence here is overblown. Canadian and American companies, for

instance, remain important players in Surinames mining industry. In absolute terms, they point out,

more Chinese have moved to neighboring countries like Brazil and Venezuela.

But Surinames size means that the influx is impossible to ignore. Suriname is basically a village with

a seat in the United Nations, said Paul Tjon Sie Fat, a Surinamese scholar in the Netherlands who

has written widely on Chinas influence in Suriname. Any small change in the ethnic or class balance

is immediately noticed.


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Guyana, China engage in multiple agreements, from health care to training

The Guyana Press, March 31, 2011

http://www.guyanapress.com/archives/6009

Guyanas bilateral relations with the Peoples Republic of China were further strengthened yesterdaywith the signing of agreements to boost priority projects in the areas of transportation, health care,

training and culture. The inking of the agreements by Foreign Affairs Minister Carolyn Rodrigues-

Birkett, Finance Minister Dr. Ashni Singh, and Chinas Assistant Commerce Minister Li Rongcan was

part of the Eleventh Session for the Guyana/China Joint Commission on Economic Trade and

Technical Cooperation.

Minister Rodrigues-Birkett, addressing the delegation, pointed out that through a joint commission,

the two countries have been able to concretise measures to promote programmes of functional

cooperation. This year marks the 27th Anniversary of the Guyana/China Joint Commission.

While noting that the consistent substantial contribution from China towards Guyanas nationaldevelopment remains a tangible one, Minister Rodrigues-Birkett stated that it also demonstrates

south/south cooperation and the countrys unwavering commitment to supporting small developing

states.

The Growing Economic Presence of China in the Caribbean

By: Richard L. Bernal, January 2011

Paper presented at the IMF/UWI Conference on The Caribbean Challenges after the Global Crisis,

Barbados, January 27-28, 2011.Available at: http://www.imf.org/external/np/seminars/eng/2010/carib/pdf/bernal2.pdf

China moves to deepen ties

By: Louis B. Homer, Trinidad Express, January 23, 2011

http://www.trinidadexpress.com/news/___China_moves_to_deepen_ties-114464534.html

Deepening of bilateral trade between China and Trinidad and Tobago is high on the list of activities

between the two countries, said Yong You Ming, Ambassador of the People's Republic of China.

He said between January and September last year China exported US$360 million to Trinidad, while

Trinidad exported over US$100 million. A large portion of the trade between the two countries came

from the sale of asphalt and related products.

He said in addition to trade, China has developed a programme in the field of culture to develop

some of the talents in Trinidad and Tobago. "I would like to mention marshal arts in particular where

a group of talented performers went to China and acquitted themselves creditably".

The Ambassador said China's foreign policy includes the promotion of culture as well as developing

friendly ties to bring about peace and stability. He said: "Just recently US President Obama, in a

speech welcoming China's President, said the US welcomes China's rise as a strong, prosperous andsuccessful member of the International community."


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He said China continues to play a pivotal role in world technology which includes the manufacture of

the world's fastest trains as well as super computers. He added, based on continued mutual respect

and mutual benefits, China's direction in world affairs is set to bring about peace and progress

among all nations.

The Ambassador's remarks were made yesterday as he attended the Chinese New Year festivalorganised by the Chung Shan Association in Port of Spain.

President of the Association, Joseph Tai Chew, in his address said the recent visit of members from

Chung Shan helped to deepen and widen relations with Chinese community in countries outside of

China. Next year a contingent of Chungshanese are expected to meet in San Francisco for the bi-

annual convention of Chungshanese.

On February 3, Prime Minister Kamla Persad-Bissessar is expected to host a dinner to commemorate

China's New Year festival.

The Dragon in the Caribbean: China-CARICOM Economic Relations

By: Richard L. Bernal

In: The Round Table: The Commonwealth Journal of International Affairs, 99: 408, 2010, pp. 281-302

http://www.informaworld.com/smpp/content~db=all~content=a922732054~frm=titlelink

Abstract

In recent years the People's Republic of China has expanded its economic relations with CARICOM.

This is evident in the increase in trade and development assistance. The objective of this article is to

explain the expanded and intensified economic presence of China in the CARICOM region. In order

to accomplish this it is necessary to identify the motives for China's conduct in the region and thefactors that account for the receptivity of CARICOM to economic relations with China. Although the

focus is primarily on the economic relationship between China and the CARICOM countries, this

aspect of China's involvement in the region cannot be separated from the political dimension.

China's motives for a growing presence in the region are both economic and political and have to be

examined in the wider context of China's overall foreign policy, its shifting world view, its

superpower status and the geo-politics of the current global conjuncture. Similarly, CARICOM's

conduct has to be located in the wider context of its overall foreign policy. The first section outlines

the history and current status of China-CARICOM relations. This is followed by an exposition of the

extent and increase in economic interaction between China and CARICOM. The third section

provides an examination of China's motives for the conduct of its foreign policy in the CARICOM

countries. These motives are partly influenced by economics and partly by politics and hence have tobe understood in the global geo-political context. A fourth section is devoted to explaining

CARICOM's receptivity to increased economic relations with China. The final section provides a brief

outlook for China-CARICOM economic relations.

China Statement to Caribbean Development Bank BOG-40

By: Mr. Du Jinfu, the Temporary Governor for the Peoples Republic of China

Statement at the 40th

Annual Board of Governors Meeting of the Caribbean Development Bank, Nassau, The

Bahamas, May 19-20, 2010

http://www.caribank.org/titanweb/cdb/webcms.nsf/AllDoc/E7DD68FE9C79A1EB04257729004EFDBA?OpenDo

cument


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Mr. Chairman, Mr. President, Fellow Governors, Ladies and Gentlemen,

It is a great pleasure to attend the Annual Meeting of the Board of Governors of the Caribbean

Development Bank (CDB). Please allow me to thank the Government of the Bahamas for organising

the CDB Annual Meeting, so that we can gather in the beautiful city of Nassau and enjoy the

hospitality of the Bahamian people. Our gratitude also goes to the Management of CDB for theexcellent programme. This year marks the fortieth anniversary of the founding of CDB. On behalf of

the Chinese Government, I would like to congratulate CDB on the achievements made in all these

years.

Severe earthquakes hit Haiti this January, inflicting heavy casualties and property losses. Taking this

opportunity, I would like to convey condolences and sympathies to the people of Haiti on behalf of

the Chinese people. After the earthquake, the Chinese Government acted promptly in providing

humanitarian aid to Haiti. Up until now, China has delivered USD15 million worth of financial

assistance and emergency supplies to Haiti. We appreciate CDBs timely and active participation in

the quake relief in Haiti.

In 2009, the international financial crisis impacted the Caribbean in many ways. Export, tourism and

remittances have dwindled to various extents. As an important multilateral development bank in

this region, CDB has taken a series of short-term and long-term measures tailored to the

development needs of the Caribbean, playing a positive role in mitigating the impacts of the crisis

and helping its regional countries weather their worst time. CDB still faces various challenges. China

supports CDBs effort to play a more important role in advancing regional development. Currently,

we are very glad that the Board of Directors of CDB has reached an agreement on a General Capital

Increase of 150%. Sufficient lending capacity and adequate capital are very important for CDB to

play a better role. We hope that CDB could further enhance its capacity and accomplish the goals

outlined in the Bank's 2010-2014 Strategic Plan.

Ladies and Gentlemen, as always, China values the friendly cooperation with the Caribbean, respects

the development pattern that the Caribbean countries have chosen based on regional and domestic

realities, and supports the concerted pursuit of development and regional integration in the

Caribbean. Recent years have seen frequent exchange of high-level visits, expansion of economic

and trade cooperation and closer multilateral cooperation between China and the Caribbean

countries.

Though affected by the financial crisis, China-Caribbean trade reached USD5.5 billion, and foreign

direct investment from China to the Region posted USD8.6 billion in 2009. Meanwhile, Chinese

enterprises have also taken an active part in economic activities and investment projects, making

contributions to development of the Region.

We also hope to further enhance cooperation with CDB, strengthen economic and trade ties through

this platform, and share the fruits and experiences of Chinas development with the Caribbean

countries.

Last but not least, I am glad to let you know that the World Expo 2010 was opened in Shanghai on

May 1, 2010. The Caribbean Pavilion, with its unique beauty, has become a tourist attraction in the

Expo. I sincerely invite you all to visit the Shanghai World Expo, and share the joy of the Chinese

people.

Thank you!


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Jamaica, China sign US$500m investment pact

Jamaica Gleaner, February 5, 2010

http://jamaica-gleaner.com/gleaner/20100205/business/business4.html

The governments of Jamaica and China have signed agreements valued at more than US$500 million(J$4.5 billion) for road, housing and other projects, including the construction of a Chinese Garden at

the Hope Botanic Gardens.

Prime Minister Bruce Golding this week led a delegation to China, now Asia's dominant economic

power-house -- eclipsing Japan -- in search of capital.

An official meeting between Golding and China's Premier Wen Jiabao preceded the signing of the

agreements Wednesday at the Great Hall of the People in Beijing, China, a release from the Jamaican

delegation said, by Jamaica's Foreign Minister Dr Ken Baugh, and the vice-minister from China's

Ministry of Commerce, Fu Ziying, and the chairman and president of the EXIM Bank of China, Li

Ruogu.

No timetable was given for deployment of the funds, nor the nature of the financing, but the new

capital will be poured into the construction of 'affordable' housing, road repair and rehabilitation,

shoreline protection, and rehabilitation of the Palisadoes strip that leads to the Norman Manley

International Airport in Kingston.

Golding told the Chinese business community that his aim is to establish a new phase of relations

between Jamaica and China with the intention of marketing Jamaica as a preferred investment

destination, the statement said.

The delegation also did hard sells on several initiatives, including prospects for coffee farming in theBlue Mountains, and the distribution and warehousing hub to be developed at Caymanas Estate on

the edge of Kingston -- targeted at far-flung countries in Asia as a transit point for trade with South

America and elsewhere in this hemisphere.

Golding was due to meet with Chinese President Hu Jintao and Vice-president Xi Jinping, before

departure. The group, which includes Industry Minister Karl Samuda, returns to Jamaica Saturday.

China in the Caribbean: The New Big Brother

By: Daniel Erikson, The Jamestown Foundation, December 16, 2009http://www.jamestown.org/programs/chinabrief/single/?tx_ttnews%5Btt_news%5D=35848&tx_ttnews%5Bba

ckPid%5D=25&cHash=83aaa0f966

When Chairman of the Standing Committee of the National People's Congress (NPC) Wu Banggou

arrived in the Bahamas in early September 2009 on the second leg of his Americas tour, it quickly

became clear that he was not on vacation. As Chinas top legislator and the highest-ranking member

of the Chinese government to ever visit the Bahamas, Chairman Wu's entourage included 150

Chinese officials and business leaders. The delegation signed a series of critical economic deals,

including an agreement for mutual protection of Chinese and Bahamian investors, a multi-million

dollar loan to help build a highway to Nassaus international airport, and additional support for a

major cricket stadium under construction (Caribbean Net News, September 10).The visit was hailedas a major diplomatic event by the Caribbean press, while Chinese media emphasized that the two

sides were ready to intensify exchanges and that the Bahamas would unswervingly stick to the One


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China policy (Xinhua News Service, September 5). In 2008, bilateral trade between the two

countries had surged to $386 million, more than double the year before, and sustained growth was

expected in 2009 despite the onslaught of the global financial crisis (CaribbeanPressReleases.com,

September 5). Chairman Wu was greeted warmly by Bahamian Prime Minister Hubert Ingraham,

who had overseen the normalization of diplomatic relations between China and the Bahamas in

1997, during a previous term in office.Indeed, as this rising Asian power becomes more deeply engaged with the tiny micro-states of the

Caribbean, China is positioning itself to be an increasingly influential actor in a distant part of the

world traditionally attached to its principal rival, the United States.

At first glance, China and the Caribbean would appear to have few interests in common. China, with

a population of over 1.3 billion, has undertaken an impressive economic expansion that has earned it

renewed recognition as a global power. The sovereign states of the English-speaking Caribbean

consist of small, micro-states with sluggish levels of economic growth. This region of 12 countries

includes the island nations of Antigua and Barbuda, the Bahamas, Barbados, Dominica, Grenada,

Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobagoas

well as Belize, which is located on the Atlantic Coast of the Central American isthmus, and Guyana,which is located east of Venezuela along the northern coast of South America. The global financial

crisis that began in the United States in late 2008 has devastated the Caribbean economies, and

muddied the prospects for the region's future growth. While China has been both a primary driver

and beneficiary of world economic growth, the Caribbean has, for the most part, been a reactor to it.

It is this difference that makes China an alluring, yet potentially dangerous economic partner.

Trade and Strategic Issues

Trade between China and the Caribbean has expanded dramatically in recent years. According to the

International Monetary Fund (IMF), trade between China and the Caribbean Community (also known

as CARICOM, this 15-member regional grouping includes all the countries of the English-speaking

Caribbean plus poverty-stricken Haiti, the former Dutch colony of Suriname, and the tiny Britishterritory of Montserrat) grew by a factor of 100 between 1990 and 2008, from a paltry $20 million to

over $2 billion [1]. Antigua and Barbuda is Chinas top trading partner in CARICOM, with trade worth

about $600 million reported in 2008. Trinidad and Tobago, Jamaica, the Bahamas, and Dominica

round out Chinas top five CARICOM trading partners. For these nations, trade with China is surely a

boon, but because China has little demand for their products or services, trade is heavily one-sided.

In 2008, 93 percent of CARICOM-China trade came in the form of Chinese exports to the region. Only

Dominica approached a balance of trade, exporting over $60 million in goods to China in that year. In

the last ten years, Chinese exports have consistently made up more than 70 percent of total trade

(IMF Trade Statistics Directory). This imbalance is cause for concern but is more indicative of the

severe economic imbalance that plagues the Sino-Caribbean relationship.

Chinese-state affiliated companies have also made significant investments in Caribbean

infrastructure, especially Hutchison Whampoa Limited, the Hong Kong-based conglomerate whose

chairman, Li Ka-shing, is known to have strong links to the Chinese Peoples Liberation Army (PLA).

Active with port concessions on both ends of the Panama Canal, Hutchison Whampoa established a

fully operational $2.6 billion port facility in Freeport, Bahamas in 2001 (Washington Times,

November 20, 2001). This past fall, unconfirmed rumors swirled through the Caribbean that the

company is in the process of purchasing the Grand Bahama Port Authority (The Freeport News,

October 5). Beginning with the first China-CARICOM Economic and Trade Cooperation Forum, which

took place in Jamaica in February 2005, China has convened periodic meetings with Caribbean

counterparts to advance its economic interests. China is also playing a robust role in the regional

multilateral banks as a member of the Caribbean Development Bank and the Inter-American

Development Bank, which it joined in 2008 with a contribution of $350 billion (Inter-Press Service,

May 27, 2009).


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Chinas overall strategy for the Caribbean has been driven by a desire to ensure the security of

Chinese offshore financial holdings, woo countries with infrastructure projects and investment deals

to ensure support for China in multilateral organizations, and promote the crucial One China policy

to isolate Taiwan on the world stage.

The Taiwan Issue: Caribbean Minnows and Asian Sharks

Now that China has become a major actor on the world stage, it is demanding the diplomatic

recognition that for years had been bestowed on the Republic of China (ROC), commonly referred to

as Taiwan. The One China policy makes diplomatic recognition of China versus Taiwan a zero sum

game, which means that Beijing will not maintain relations with any state that recognizes Taipei.

Only 23 nations maintain official relations with Taiwan and Latin America and the Caribbean account

for half of these, making the Commonwealth Caribbean a competitive arena in which both Beijing

and Taipei have a strong interest. China, in competition with Taiwan, offers economic support to the

Caribbean through trade, aid and investment, which returns the favorfor the most partby

maintaining the One China policy.

Taiwans alliances with the Commonwealth Caribbean have been whittled down by Beijing's

increasingly skillful diplomacy in recent years. The Bahamas defected in 1997, and the island nation

of Dominica severed ties with Taipei in 2004. Not long after that, Grenadastill grappling with the

legacy of the communist takeover that prompted U.S. military intervention in 1983turned its back

on its staunch anti-communism rooted in the Cold War era to open its arms to China in 2005. Four

countriesBelize, St. Lucia, St. Kitts and Nevis, and St. Vincent and the Grenadinesrecognize Taipei

over Beijing, but the support of these Caribbean nations often comes down to dollars and cents. In

2008, 91.5 percent of Chinas trade with CARICOM was with countries that recognize Beijing. Only

8.5 percent of Chinas trade was with countries that recognize Taipei despite the fact that more than

half of the people in CARICOM live in Haiti, a state allied with Taiwan [2].

In the case of St. Lucia, the competition between China and Taiwan veered into the theater of the

absurd as the debate became heavily polarized along political lines leading up to the 1997 election of

Dr. Kenny Anthony as prime minister. As a result, recognition of China became a domestic issue with

Anthonys party, the St. Lucia Labor Party, supporting Beijing while Sir John Compton, leader of the

United Workers Party (UWP), favored Taipei. These internal divisions are often rooted in ideological

differences but enhanced by the dollar diplomacy practiced by both China and Taiwan in the

Caribbean. When Anthony was elected prime minister in 1997, he switched allegiance from Taiwan

to China within the first four months of his administration. During his administration St. Lucia was

the recipient of much Chinese aid, especially in preparation for the Cricket World Cup, hosted by the

West Indies in 2007. Four key Chinese aid projects, including the construction of a national stadium

and a psychiatric hospital were used to woo the tiny nation out of Taiwans dwindling fold.Nonetheless the extent to which Chinas internal affair with Taiwan was a domestic issue in St.

Lucia became clear when the islands most recent electoral results provoked a change in recognition

of the One China policy.

The general election of December 11, 2006 saw a return to power of two-time Prime Minister

Compton, and St. Lucias position on the Taiwan question was once again in play. With a population

of almost 170,000 and an estimated GDP of $1.8 billion, the tiny nation emerged as a key fighting

ground in the geopolitical battles for diplomatic recognition between China and Taiwan. On April 30

2007, St. Lucia formally recognized Taiwan and within a few days China withdrew its diplomatic

corps (New York Times, May 2, 2007). In reality, St. Lucias switch does not represent a turning of the

tides back to Taiwan but instead merely re-emphasizes the fact that recognition of China or Taiwan

in the Caribbean is not an ideological issue, but instead one fueled largely by economic opportunism.


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Moreover, St. Lucias flip-flop represents an exception, as most other English-speaking Caribbean

states have moved decisively toward recognizing Beijing. Meanwhile, gaining confidence from its

ever-expanding economic prowess, China is learning quickly to play the dollar diplomacy game. The

PRC has an advantage over Taipei in this endeavor to the extent that its foreign ministry operates

unconstrained by the scrutiny of either a legislature or independent media, and its willingness to dig

into its deep pockets have already paid some dividends. Dominicas Primer Minister RooseveltSkerrit switched recognition in 2004 after receiving a pledge of $112 million over a six-year period

from Beijing. Though in 2003 Grenadian Prime Minister Keith Mitchell said that maintaining

relations with Taiwan is practical, by 2005 he had changed his tune, signing a joint communiqu in

support of the One China policy. In exchange, Beijing promised financial assistance to rebuild and

expand Grenadas national stadium for the 2007 Cricket World Cup; construction of 2,000 housing

units; new hospital facilities; agricultural support; a $6 million grant to complete projects previously

financed by Taiwan; and an additional $1 million scholarship fund [3].

Furthermore, Caribbean governments are intrigued by the idea of China as a potential partner for

trade and investment. As a rising superpower without a colonial or imperialist history in the

hemisphere, China is in many ways a more politically attractive partner than either the United Statesor Europe for some local politicians confronted with increasingly anti-American constituencies.

China, in this view, offers a more benevolent version of the Big Brother role typically played by

Western powers. Nevertheless, most analysts recognize that the Caribbeans embrace of Chinato

the extent that this has actually occurredis potentially linked to their perception of neglect and

disinterest from the United States.

China and the Caribbean: A Delicate Embrace

More than 8,000 miles separate Beijing from most Caribbean capitols, but given the historical,

economic and political differences between China and the Caribbean, distance has not diminished

the eastern economic powerhouses interest in forging ties with these tiny Caribbean islands.

Nonetheless, Chinas engagement with the Caribbean has intensified significantly in recent years andsmall Caribbean states can no longer ignore the dragon in their midst. Today, virtually every

Caribbean nationincluding those that do not formally recognize Chinahas extensive political and

economic contacts with the nascent economic powerhouse in East Asia. This marks a dramatic

change from the days when Caribbean nations lacked significant economic or diplomatic relations

with China. Recently, a surge in trade between China and the Caribbean, increased diplomatic

recognition of China in the region, and a flurry of official visits have signaled a significant

strengthening of Sino-Caribbean ties.

While the reasons for this are complex, the relationship between China and the Caribbean hinges on

two critical components: Chinas economic might, and its focus on diplomatically isolating Taiwan.

Economic cooperation is the underlying basis for Caribbean interest in strengthening ties to China.As an economic powerhouse that is well equipped to deal with the effects of increasing

globalization, China stands opposite the vulnerable Caribbean and can offer the attention of a

superpower to a region looking to take part in the globalized economy. The desire to strip Taiwan of

its remaining allies, as a step toward reincorporating it under the domain of mainland China, has

given the Caribbean a level of political salience in Beijing that it would otherwise lack. Yet, the true

shape of Chinas relations with the Caribbean will be determined by broader global forces and the

dexterity with which Chinese policymakers and their Caribbean counterparts are able to forge

mutually advantageous ties. It is clear that China is mapping out a long-term vision for engaging with

the Caribbean, but it is too early to tell whether this vulnerable region will sink or swim as a result.

Notes

1. Direction of Trade Statistics International Monetary Fund, July 2009. Exports of a country to the world by

partner and Imports (c.i.f.) of a country from the world by partner, www.imfstatistics.org (accessed July 2009).


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2. Direction of Trade Statistics of International Monetary Fund and authors estimates.

3. Daniel P. Erikson and Janice Chen, China, Taiwan and the Battle for Latin America, The Fletcher Forum of

World Affairs, Summer 2007.

Chinas influence growing in Latin America and the CaribbeanBy Dr. Odeen Ishmael, July 1, 2009

http://www.sharenews.com/opinion/2009/07/01/china%E2%80%99s-influence-growing-latin-america-

caribbean

The visit by Brazil's President, Luiz Inacio "Lula" da Silva, to China in May 2009 reflected the Asian

nation's expanding economic and political influence in Latin America and the Caribbean (LAC). One

year ago, the Brazilian government announced that China would surpass the United States as its

major business partner. The results of da Silva's visit verified this after the two nations signed 13

agreements, including a $10 billion loan from the China Development Bank to Brazil's state oil

company, Petrobras. Petrobras also concluded a deal with a subsidiary of China's oil refiner, Sinopec,

for the export of crude oil. And a major commercial agreement will see the beginning of huge

poultry exports to China.

Brazil's two-way trade with China, one of the few economies still growing despite the global crisis,

reached US$3.2 billion in April, surpassing the $2.8 billion trade total with the U.S. So far this year,

Brazilian exports to China grew 65 per cent over the same period in 2008, rising from $3.4 billion to

$5.6 billion.

At the beginning of November 2008, China's priority to LAC was highlighted in a policy paper issued

by the country's foreign ministry. And, later that month, to emphasize that priority, Chinese

President Hu Jintao visited Costa Rica, Cuba and Peru to highlight his country's growing power and

influence in the region. This was a follow-up to his Latin American tour in 2004, which resulted in

expanded investments, trade and diplomatic and military exchanges.

China's policy paper on LAC states that the Chinese government views its relations with Latin

America and the Caribbean from a strategic plane and seeks to develop a comprehensive and co-

operative partnership featuring equality, mutual benefit and common development with countries

in the region. It goes on to explain the importance of the bilateral co-operation in trade, investment,

finances, agriculture, infrastructure, resources and energy, tourism, customs, quality inspection,

culture and education.

Some political observers feel that the diplomatic outreach in LAC is also aimed at urging the 11

nations in the region that maintain diplomatic relations with Taiwan to shift their recognition toChina. Costa Rica in 2007 severed connections with Taiwan, and so did Grenada and Dominica.

It is obvious, too, that the establishment of leftist governments in many countries in LAC has aided in

strengthening bilateral diplomatic relations. But the embrace of China also comes from LAC as part

of its broader inter-regional diplomacy which has seen expanded relations with Europe, Asia, Africa

and the Middle East, while maintaining its traditional connections with the United States.

China's links with LAC centres on trade and are propelled by an ever-increasing demand for natural

resources. Trade shot up from $12.6 billion in 2000 to $102.6 billion in 2007, and was expected to

reach $150 billion last year. In 2008, China's top 10 trade partners in the region were Brazil, Mexico,

Chile, Argentina, Peru, Venezuela, Panama, Colombia, Costa Rica and Cuba. Significantly, China isnow the third largest trade partner of the region.


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The country's main exports are computers, telecommunications equipment, clothing, shoes,

electronics, motorcycles and cars, while most imports are agricultural goods and raw materials such

as crude oil, iron ore, copper, tin, tungsten, molybdenum, aluminium and nickel.

The Asian giant is also investing heavily in the region. Its investments reached $1.89 billion in 2007,much related to infrastructure building, extraction of national resources, manufacturing assembly,

telecommunications and textiles.

In addition, it has science and technology agreements with 13 regional states and these have led to

more than 100 research projects in agro-, bio- and information technology. These agreements have

resulted in an earth-resources satellite project with Brazil, with three satellites launched to date; and

another with Venezuela which saw the $400-million Simon Bolivar communications satellite

launched in October 2008.

Energy concerns play an especially important role in China's Latin-American diplomacy. In addition to

the energy agreement with Brazil, Beijing is also exploring energy deals with Venezuela, Ecuador,Bolivia, Peru, Colombia and Argentina. With regard to Venezuela, China is expected to invest billions

of dollars in a heavy oil development project in the Orinoco belt. As a result of this co-operation,

Venezuela has begun to receive oil drilling platforms and oil tankers it ordered from China. Currently,

Venezuela is the seventh largest source of Beijing's external oil supplies.

But the Chinese government is also showing attention to the smaller economies of the region. For

instance, tiny Dominica, which cut relations with Taiwan, has been offered US$122 million in

assistance over a period of six years.

At other multilateral levels, China has held numerous discussions with the Rio Group and has

established a dialogue mechanism with MERCOSUR, the Andean Community, and the CaribbeanCommunity (Caricom).

In the military sphere, China offers training courses for military officers in its staff academies and

sells helicopters, artillery, anti-air and anti-ship missiles and light assault weapons to some Latin

American and Caribbean countries, while purchasing anti-tank, anti-air missiles and avionics from

Brazil.

Significantly, in September 2004, China sent a "special police" peacekeeping contingent to Haiti - an

ally of Taiwan - marking Beijing's first deployment of forces ever in the Western Hemisphere.

Despite the expansion in political, economic and diplomatic ties between China and LAC, somenegative aspects of economic activities, in particular, have persisted when viewed from the LAC

perspective. Some trade analysts say that Chinese goods are dumped without duties into many

markets, with Mexico and Argentina particularly hard hit by China's flood of low-end manufacture

exports. This, they add, has resulted in the rise of anti-China sentiments.

Further, the view has been constantly maintained that China's involvement in the region could pose

a future threat to U.S. influence. And, while many political and business leaders in Latin American

and Caribbean countries welcome new Chinese investments, others are concerned that their

domestic industries and their U.S. export markets will be overwhelmed by cheap Chinese imports. It

is hoped that with the advancement of closer diplomatic and business relations between China and

LAC, solutions to such problems will become matters of priority.

Dr. Odeen Ishmael is Guyana's ambassador to Venezuela, however, the views expressed are solely his.


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It is in the interest of the entire group of 14 independent countries, which along with the British

colony, Montserrat, make up CARICOM to settle a long-term and predictable aid, trade and

investment agreement with China along the lines of the Lome and Cotonou treaties that they had

with the European Union (EU).

But, CARICOM will not be able, collectively, to negotiate such a treaty with China while five of itsmembers remain tied to Taiwan.

One China policy

If the point needed re-emphasising, Chinas Vice Minister of Foreign Affairs, Li Jinzhang, recently sent

a strong warning that the Chinese government will not compromise its One China policy.

And, the indications could not be clearer that China and Taiwan are moving inexorably toward a

means of living together despite the sabre rattling from Beijing and the loud protestations of the

previous Taiwanese government.

The newly elected President of Taiwan, Ma Ying-jeou, who takes office on May 20, favours betterbusiness ties with China, including more direct air links, more Chinese tourists and normalized trade

ties. China is already the biggest market for Taiwanese investment.

Ma has abandoned plans by the previous Taiwanese administration to hold a referendum on Taiwan

trying to join the United Nations as a sovereign state, and he has opened exploratory talks with

Chinese government officials.

These talks are unlikely to settle arrangements between the two parties anytime soon, but by a

process of attrition, they will move toward a solution that is in their interests. When they do, those

who have held on to the coat tails of Taiwan may find themselves casualties.

For the time being, even under President-elect Ma, Taiwan will try to maintain diplomatic support

for itself from the few remaining countries that still do so. So, there will undoubtedly be

reaffirmations of Taiwans sovereign status, and its commitment to providing assistance to its

supporters in what has come to be called dollar diplomacy.

Eventually, however, there are some realities that have to be faced by Caribbean countries

collectively:

China is one of the five permanent members of the UN Security Council with a power of veto. China is now the fourth largest economy in the world and growing. China now has close to US$1.4 trillion in foreign reserves; it has money to spend.

In 2007, China earmarked RMB 4 billion (about US$1.5 billion) to Chinese companies to invest inthe Caribbean.

China also announced in 2007 that the government itself would invest US$553 million in theCaribbean over the three year period 2007-2010.

Chinas middle class is growing and will soon be larger than the middle class of the United States;within the next few years, Chinese will make up a significant number of world-wide tourists.

Chinas trade with the Caribbean as a whole, including Cuba, jumped from US$450 million in1991 to US$980 million by 2001.

The Caribbean connection

China has an interest in access to raw materials in the Caribbean. In this connection, Trinidad and

Tobago, Jamaica and Guyana are of far more strategic interest to China than the smaller territories

that make up the Organisation of Eastern Caribbean States, a sub-group of CARICOM.


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It is gas and asphalt in Trinidad; bauxite in Jamaica; timber, bauxite and minerals in Guyana that are

Chinas big attractions.

As has been pointed out by Gregory Chin of York University, it is not that China cannot get these

commodities elsewhere, but the additional resources that the Caribbean supplies gives the Chinese

government comfort, as well as the ability to negotiate prices.

In the Bahamas, Chinese companies have taken advantage of the proximity to the US to establish

manufacturing and assembling of products for the US market. Increasingly, the Bahamas port

services include ship repairs and storage. The relationship works for both countries.

The challenge of the OECS for China is the continued flirtation by some of them with Taiwan. But,

China can afford to wait; it has nothing to lose.

At the bottom line, Chinas investment and aid gives Caribbean countries room to manoeuvre, in a

limited international economic space.

So far, Chinas aid and investment does not come with political conditions. Therefore, it gives

Caribbean governments the ability to pursue infrastructural and other developments for which they

would get little or no help from international financial institutions and some traditional donor

countries.

A Caricom one-China policy

But, the relations between China and CARICOM countries have been structured at an individual

level.

In the course of working these relations, individual Caribbean countries have negotiated very little;

they have been recipients of what the Chinese have offered. And, while the Chinese have beenrelatively benign and helpful, the Caribbean should not count on this remaining so.

This is why all of the countries of CARICOM should join together in negotiating a long term aid and

investment treaty with China, that provides direct benefits to individual countries at levels no less

than they now enjoy (including those who now have relations with Taiwan) and sets an agreed

framework for the wider China-CARICOM relationship.

Part of the agreement should be adherence to labour laws in the Caribbean, and skills and

technology transfer.

To do so, all of CARICOM needs a One China Policy.

China pledges more support to Caribbean region

From: Xinhua, September 9, 2007

http://www.chinadaily.com.cn/china/2007-09/09/content_6091669.htm

Xiamen China plans to offer 4 billion yuan (US$530 million) in low-interest loans to Chinese firms

in three years to encourage more investment in Caribbean regions.

China will help Caribbean countries to train 2,000 government officials and various technicalprofessionals during the period, Chinese Vice Premier Wu Yi said at the ongoing 2nd China-


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Caribbean trade and economic cooperation forum held in Xiamen, a coastal city in east China's

Fujian Province.

She pledged that China will broaden technical exchanges and deepen cooperation in agriculture and

fishery, and implement tourism agreements to encourage more Chinese citizens to visit Caribbean

countries.

"China is ready to deepen the economic and trade cooperation with Caribbean countries as it

attaches great importance to their friendship and cooperation," she stressed.

Efforts will also be made to improve trade conditions and promote trade balance, as economic

relation is of great significance to bilateral friendship and cooperation, according to the vice premier.

Wu said relationship between China and the Caribbean countries has been further strengthened,

particularly over the past five years, when the trade volume increased at an annual average rate of

32.7 percent.

Enhancing cooperation is a natural requirement of economic development of both sides, who are

devoted to improving national economies and people's living standards amid challenges brought

about by globalization, according to Li Changjiang, chairman of the forum, held on the sidelines of

the 11th China International Fair for Investment and Trade.

China and Caribbean countries, both developing nations, can learn from each other through

cooperation, said Lolita Applewhaite, deputy secretary general of Caribbean Community.

"We hope to attract more investment from China, whose economy is growing rapidly, which will be a

win-win choice," she said.

"We are particularly interested in learning China's experiences in tourism, industry and technology

development," said Harold Lovell, minister of tourism with Antigua and Barbuda, a Caribbean island

covering 441.6 square kilometers.

Development of bilateral economic and trade relations also provides momentum to Chinese firms.

The Shenzhen-based Huawei Technology Co., Ltd.,which launched marketing programs in Caribbean

regions as of 1999, has provided equipment and services worth over US$100 million, said Fan

Houhua, president of Huawei's Latin-American business.

Trade turnover reached US$4.4 billion in 2006 and is expected to hit US$5 billion this year. Bothsides have registered US$2.23 billion in trade turnover in the first half of this year, up 22 percent as

against the same period of last year, according to official statistics.

More than 260 officials, delegates of investment organizations and enterprises from 13 Caribbean

countries participated in the forum.

china in the caribbean 2007 2011

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