Economy of Costa Rica: Ties With China

For China, Costa Rica represents an important diplomatic tie, opening a gateway to strengthen its presence in the region, said Manuel Orozco, an analyst at the Washington-based Inter-American Dialogue. A deal would provide Costa Rican consumers with a host of Chinese-made goods and help the country diversify its exports.

But as Costa Rica inches closer to that FTA, a fierce opposition is mounting here.

In political terms, these countries’ relationship is only just beginning to bud. In June 2007, Costa Rican President Oscar Arias turned on longtime ally Taiwan and set up diplomatic ties with that country’s neighboring rival, the People’s Republic of China.

Costa Rica’s move to become China’s first diplomatic friend in Central America did not come without Chinese gratitude: The Asian giant bought $300 million in Costa Rican bonds and pledged millions more in aid and projects, including San Jose’s new national stadium and its first Chinatown.