<http://edition.cnn.com/2005/BUSINESS/02/19/china.caribbean/index.html>

CNN

 
 China targets Caribbean trade

Saturday, February 19, 2005 Posted: 0805 GMT (1605 HKT)
 China's Vice-President Zeng Qinghong at the China-Caribbean economic and
trade forum in Jamaica with Minister of Trade K.D. Knight. YOUR E-MAIL
ALERTS


SAN JUAN, Puerto Rico (AP) -- China is waging an aggressive campaign of
seduction in the Caribbean, wooing countries away from relationships with
rival Taiwan, opening markets for its expanding economy, promising to send
tourists, and shipping police to Haiti in the first communist deployment in
the Western Hemisphere.

And the United States, China's Cold War enemy, is benignly watching the
Asian economic superpower move into its backyard.

For decades China and Taiwan used dollar diplomacy to win over small
Caribbean nations where small projects building roads, bridges, wells and
fisheries go a long way.

But Beijing's growing economic clout is tipping the scales in the region.

 Caribbean trade with China reached $2 billion last year, a 42.5 percent
increase from 2003, the Chinese news agency Xinhua reported.

The United States has applauded China's economic offensive, seeing it as a
herald of political reform.

"China's intensified interest in the Western Hemisphere does not imply a
lack of focus by the United States," Roger Noriega, the U.S. assistant
secretary for Western Hemisphere affairs, said in a recent letter to the
editor of New Jersey's Newark Star Ledger.

 "The United States has long stood for expansion of global trade and
consolidating democracy."

This year, two Caribbean countries -- Dominica and Grenada -- switched
allegiance to China, abandoning Taiwan, which China calls "a renegade
province."

Though democratic Taiwan is self-governing, communist Beijing insists the
island is part of China. The two sides split amid civil war in 1949 and
Beijing has since refused to have ties with any government that recognizes
Taiwan.

"Democratic, market-oriented Taiwan is a thorn in its side," said Steve
Johnson, senior policy analyst at the conservative Washington, D.C.-based
Heritage Foundation.

Two weeks before Dominica changed sides, Taiwan gave it $9 million. China
promised Dominica $112 million over the next six years.

"China is not only increasing its influence in the Caribbean, the region is
opening up to China, realizing that Taiwan's money diplomacy is not working
anymore," said Guyana's Foreign Minister Clement Rohee.

The Bahamas was one of the first in the region to abandon Taiwan, in 1997.
The move came as Hutchisom Whampoa, a Beijing-allied Hong Kong company,
opened a $114 million container port in Freeport and bought three hotel
resorts in Nassau.

 Since then, China has earmarked more than $1 billion for projects ranging
from maritime transport to a sports complex.

Grenada's Prime Minister Keith Mitchell said he expects future Chinese aid
will be significant.

Tourist trade

Early this month, Chinese Vice President Zeng Qinghong visited Jamaica for
a three-day China-Caribbean economic and trade forum attended by hundreds
of Chinese and Caribbean government officials and business executives.

Robert Stephens, chairman of Jamaica's Fair Trade Commission and senior
vice president of the Jamaican Port Authority, looks forward to future
deals.

"The Chinese would distribute goods throughout the Caribbean. Any increase
in business would benefit Jamaica as a logistic distribution hub," he said.

By the end of the forum, China added Antigua, the Bahamas, Barbados,
Dominica, Jamaica, and St. Lucia to its approved travel destinations,
promising the region a bigger piece of the fast-growing Chinese tourist
market.

Caribbean governments had sought the approved status to boost a tourism
industry hard hit by the September 11 terror attacks in the United States.

"Basically, it's the tourist trade that interests China," Johnson said. "I
think they will try to invest in their own hotels and in maritime
activities" while "consolidating their access to energy" in oil-producing
Trinidad.

Qinghong this month led a delegation of 120 to Trinidad and visited its
Pitch Lake, which produces asphalt used to pave many Chinese highways and
the runways at Beijing International Airport.

 China, already the leading importer of Trinidadian asphalt, is a good
prospect for even more business as Beijing develops infrastructure for the
2008 Olympic Games and World Expo 2010, a Chinese government statement said.

Once mortal enemies

In the Caribbean, only five countries still maintain relations with Taiwan
-- the Dominican Republic, Haiti, St. Kitts and Nevis, and St. Vincent and
the Grenadines.

But China has commercial missions in the Dominican Republic and in Haiti,
where in October China dispatched 95 police officers to join a U.N.
peacekeeping force. It is Beijing's first contribution to a U.N. mission in
the Western Hemisphere.

The United States and China once were mortal enemies.

When China became communist in 1949, the United States supported Taiwan,
the island where the former Chinese government had taken refuge. U.S.
troops fought Chinese soldiers during the 1950-53 Korean War.

But in 1971 the United Nations gave Beijing the China seat and Taiwan was
expelled. In 1979, the United States recognized China's legitimacy. In
2001, China entered the World Trade Organization and foreign investment in
China shot to $153.5 billion last year, up 33 percent from 2003.

Last year, China's share of global output was 13 percent ---- more than
that of Canada and almost twice that of Japan.

U.S. exports to China have grown more rapidly than to any other country
with cumulative investment there reaching $35 billion, according to the
State Department. Among leading U.S. businesses there, Wal-Mart sales in
China totaled $707 million in 2003.

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experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'


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