San Jose (dpa) – Nudged out of the region for several decades by its “rebel province” Taiwan, China took the decision to return four years ago, with the establishment of diplomatic relations with Costa Rica, a country that has served as a base to reach out to the rest of Central America as well. “Costa Rica allows us to have a platform to try to extend in the future our commercial, political and cooperation interests toward other nations in Central America,” Wang Xiaoyuan, the first ambassador, has said on several occasions. Wang arrived after diplomatic ties were achieved in 2007. The importance China allots to Central America was made evident in October, with a state visit from Chinese President Hu Jintao, who came to strengthen ties with San Jose. When Costa Rica set up ties with China, it meant breaking with six decades of relations with Taiwan. This did not come for free. In exchange, Costa Rica has received a generous dose of the “manna” the Asian giant has to offer. To start with, China bought 300 million dollars of Costa Rican debt; it donated a modern national football stadium built by Chinese engineers and construction workers that cost more than 84 million dollars. China also channeled more funds to Costa Rica amounting to 120 million dollars in cooperation projects. Not much later, China donated 200 patrol cars to the Costa Rican Security Ministry, a gift repeated three years later when Chinese Foreign Affairs Minister Yang Jiechi visited the country. Within the framework of this newfound “friendship,” China and Costa Rica signed an agreement to modernize the state-owned Costa Rican Petroleum Refinery, a plan that will require a 1-billion-dollar investment. Costa Rica last year renewed another request made to Beijing for over 200 million dollars to funnel into other projects, among them a highway in the country's Atlantic region. Costa Rican President Laura Chinchillla is packing her suitcase to travel to Beijing in the near future, just like her predecessor Oscar Arias did after setting up diplomatic ties. Two years after they formally established relations, both countries signed a free trade agreement that will help to strengthen a growing and vigorous trade between them, which, according to Chinese sources, reached nearly 3 billion dollars in 2009, making ChinaCosta Rica's second-largest trading partner. China has also pledged to finance the construction of a police academy in northern Costa Rica, for over 30 million dollars. Chinese firms are interested in entering into associations involving hydroelectric projects. They are already doing business in mobile phone systems working with the state-run Costa Rican Electricity Institute. Thanks to its embassy in San Jose, the Chinese government has the opportunity to send trade missions to other spots, including the other Central American countries, which, despite the decision taken by Costa Rica, continue to be loyal to Taiwan. Chinese authorities offered 1 million dollars to the San Jose City Hall to build a Chinese quarter, that will be located in the southern part of the capital. Work is set to begin soon. The new Costa RicanChinatown will become the dragon's great symbol in this country serving the Chinese community, which, according to unofficial estimates is composed of about 60,000 people. BM ShortURL: http://goo.gl/B2906 Tags: Central America, China, Costa Rica Section: Business, East Asia, North America
