China’s President Xi Jinping and first lady Peng Liyuan receive the Keys to the City from San Jose Mayor Johnny Araya. Photo: Reuters
While Obama’s visit was mainly symbolic and dealt with long-term issues, the visit by Xi Jinping focused on specific projects such as the $400 million for the route to Limon. Obama came with smiles, Xi came with his pocket book!
It was undoubtedly an act of pragmatism by Oscar Arias in 2007 to recognize China and seek closer relations with what Napoleon called ‘the sleeping giant’, which looks much more awake in the XXI century, ” explained Mario Bermúdez in an article in an article in Elfinancierocr.com.
“… It is not enough to just look at the short term effect of this visit, limiting yourself to multi million dollar agreements which together are worth over $ 2 billion. Also on the table are striking contrasts that can not be ignored … “.
“Clean energy, but subject to an uncertain future, oil and checkbook in sight. A clear example of the leadership of an America that has not recovered from the crisis, against a China that aggressively throws forward alliances (the joint refinery and conditions to choose a Chinese company in the construction of the route to the Caribbean is not a coincidence, but a style) “.
China lent Central American ally Costa Rica nearly US$400 million on Monday during a visit by Chinese President Xi Jinping to a region where Beijing has traditionally vied with rival Taiwan for influence.
Costa Rica recently backed China in its dispute with Taiwan, which Beijing regards as a renegade province, in votes at the United Nations. Members of the Costa Rican opposition said the deals announced on Monday raised questions about what China expected in return.
The bulk of the financial aid was made through the Export-Import Bank of China, which said it was giving a US$296 million loan to fund the extension of a road to connect the central part of Costa Rica to its main shipping port in the Caribbean.
A second loan for US$101 million was made to allow Costa Rica to replace some 16,000 public transportation vehicles. Both loans must be approved by Costa Rica’s Congress.
The Caribbean and Central America are regions where China and Taiwan have competed for allies. China and Taiwan have been ruled separately since defeated Nationalist forces fled to the island at the end of a civil war in 1949.
China still claims the island as its own territory and reserves the right to use military force to reclaim Taiwan, although economic ties have broadened rapidly and a free-trade agreement links the two sides.
Costa Rican Foreign Minister Enrique Castillo said on Sunday that it would “only be natural for China to ask us for support at the United Nations level”.
But after the loans were announced by the Costa Rican government, Castillo said no strings had been attached.
“In the political arena, China has asked us for nothing, there have been no conditions imposed on us,” he said.
“It’s been our initiative, since we are friends, to offer our position in the region and help them start new friendships with other countries here,” he added.
China’s first lady Peng Liyuan visits the National Children’s Hospital of Costa Rica. Photo: Xinhua
Students receive computers from China’s President Xi Jinping and Costa Rica’s President Laura Chinchilla (right). Photo: AP
Xi’s visit came on the sixth anniversary of the beginning of diplomatic relations between the two countries. He is set to fly to Mexico on Tuesday for a state visit, and then to the United States to meet President Barack Obama later in the week.
Nine deals were signed on the visit, including a Chinese donation of US$16.3 million for Costa Rica’s police academy. Costa Rica will be applying for a loan from China to buy 5,000 solar panels in coming months, the government said.
But a US$1.5 billion upgrade of an oil refinery by China National Petroleum Corporation, due to be funded partly through a US$900 million loan from the China Development Bank, is still pending as Costa Rica is not yet satisfied with the terms.
The main opposition Citizens’ Action Party, or PAC, submitted a letter in Chinese to Xi calling for transparency on the agreements made on Monday, PAC congresswoman Carmen Munoz said.
“We know there’s no such thing as a free lunch and from this point of view we are questioning why Costa Rica is opening its doors for China and in exchange for what,” she said. “We’ll see how these gifts and donations express themselves in the future.”
China is Costa Rica’s second-biggest trading partner after the United States. Costa Rica imported US$1.44 billion in Chinese goods last year, while its exports to China were US$331 million, government data showed.