Following the path chosen by its neighbors Panama and Costa Rica, the Salvadoran government has announced the opening of diplomatic relations with China and a rupture with Taiwan.
Reactions to the announcement by President Salvador Sánchez Cerén did not take long.The US government expressed its opposition, stating that the decision will bring negative consequences for El Salvador, while opposition politicians accused the government of wanting to ease the way for China to be granted the concession to operate the port of La Unión.
As of December 1, import tariffs for consumer goods such as food, health supplements, shoes and clothing, among other things, will fall from 17% to an average of 7%.
The measure will take effect on December 1 and will affect 187 types of products, which include clothing, shoes, appliances, medicines or entertainment items, the ministry said in a statement on its website.
Panama's decision to establish diplomatic relations with the People's Republic of China is a promising step towards turning the country into a gateway for investments by the Asian giant in the region.
EDITORIAL
Although Panama is not the first country to break diplomatic relations with Taiwan in order to establish them with China, with Costa Rica having done so in 2007, it is the only country in the region that has the necessary logistical and commercial conditions to become an ideal platform for Chinese investments.
Although the Minister of Public Works had demonstrated his confidence that there would not be increased costs in the road project to be built by the Chinese company CHEC, an announcement has now been made that there will be increases and they will be "substantial".
An article in Nacion.com reports that "...Confidence in "Chinese honor" and a personal guarantee that the Asians would not raise the cost of extending Route 32 (to Limon), only lasted two months for Transport Minister Carlos Segnini. "
The government has announced the opening of a consulate in Shanghai and other efforts to open others in cities where there is high purchasing power in an effort to attract people to the Costa Rican tourism sector.
From a statement issued by the Government of Costa Rica:
Tourism is one of the axes that form part of the strategic partnership relations between Costa Rica and China, with concrete actions leading to an increase in visits by tourists , the beginning of efforts to establish a direct flight and contact made by tour operators.
The state run firm Recope has affirmed the need to build a refinery with the Chinese, citing the existence of a contract which is already being run.
Instead of focusing on strategies for renewable energy generation and opening up the energy market in the country, the authorities of the Costa Rican Oil Refinery insist on building an oil refinery, using funds from the Chinese government.
The extension of the road to Limon and the construction of a refinery in Moin, both to be funded by the Chinese government, will be renegotiated by the Solis administration.
Two major projects in infrastructure which began under the Chinchilla administration are now being analyzed by the government of Solis, due to the criticism against the conditions imposed by the Chinese government for the provision of the $395 million for the expansion of the road from San Jose to Limon.
The delay in the approval of the Chinese loan for the construction of the road to Limón suggests the need to consider other options.
The Government of China has set December 31 as the deadline to maintain the conditions of $395 million loan offered to build the road to Limon, but the Legislature could take up to April 30, 2014 to discuss it.
Although the Executive Branch will ask the Chinese government for an extension, the need has arisen to evaluate alternatives so as not to delay one of the most important routes for the country's economic activity.
Two mobile scanners for inspecting containers, with a value of $6 million, have been abandoned and left to deteriorate outside for three years.
Now the manufacturer, the Chinese company Nuctech, will be responsible for repairing and maintaining the two X-ray machines which are valued at $6 million and were donated by their Government and which have been damaged after being abandoned for three years.
71 steps for the establishment of foreign companies in the Asian nation have been eliminated, while another 20 have been delegated to the central government.
The State Council (government) of China has announced that it will simplify administrative procedures, among which is the reduction of paperwork for foreign businessmen to set up their companies in the country.
Both the president-elect of El Salvador and the Chinese government expressed interest in closer ties.
Mauricio Funes, president-elect of El Salvador, said Wednesday that he was interested in exploring the establishment of diplomatic relations and strengthening trade relations with the Asian country.
According to an article by AFP in mipunto.com, the Chinese government indicated its willingness today to "strengthen relations with El Salvador," but it clarified that “any closer ties to El Salvador should be based on the principle that the island of Taiwan is an integral part of Chinese territory."
China will finance a high technology development center which will feature a business center, shopping area and data center.
The governments of both countries are already working on the design of the complex estimated at a cost of $65 million.
According to Nacion.com, the Chinese ambassador in Costa Rica, Wang Xiaoyuan, reported: "We reached an agreement for China to give consultation on the park.
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