China’s Emerging Impact on Caribbean, Latin American Nations

China’s Emerging Impact on Caribbean, Latin American Nations
By Bill Milligan

Montego Bay, Jamaica – China spent seven billion dollars on investments in the Caribbean and Latin America for 2009.  The majority of these dollars went to countries that have developed diplomatic ties with China while severing those with Taiwan, says Chief Operating Officer Dr. Adam Wu of China Business Network.  

Twenty three countries have relations with Taiwan; twelve of those are in the Caribbean and Central America.  It was made very clear that ties with China increased business opportunities significantly.  Those who have developed these ties now no longer require visas for Chinese visitors who travel in tour groups.

Chinas foreign reserves estimated at 3 to 6 trillion dollars is more that Saudi Arabia, Japan and Russia combined.  Outbound Chinese tourists have dramatically increased since 1999, with 57 million traveling in 2010, a jump of 21 percent over the past year.  Over 18 million business and employer foreign visits were recorded for 2010.

The Chinese government is actively encouraging foreign travel and global business expansion.  With a middle class of more than 100,000,000 people and plenty of disposable income it is estimated that they spend an average of 6 thousand dollars per trip, being the highest of any nation.

The internet is the mode of communication used by 457 million Chinese, with the language barrier being the major impediment requiring websites in Chinese.  Jamaica is a good example of results to be expected as they saw over 2 million hits in one year following a visit from Minister of Tourism, Edmund Bartlett and the establishing of their website.  With less than half of Chinas 1.3 billion people on the net, growth potential is enormous.  

China is looking to gain a foothold in the Caribbean and Latin America for business ventures and tourism, although with a political catch…Sever ties with Taiwan, develop diplomatic relations with China and the Far East pocketbook magically opens.  The near future will see where this leads us from a geopolitical point of view.

Suspicious of the Chinese?  Don’t be, says CHTA President Josef Forsymayr. “I don’t think one should ever look at any kind of investment with any other motive. It is what it is. It’s an investment in the future of that country and it’s a great validity signal that outside investors recognize the importance of that country. I don’t see any kind of sinister elements there at all”.