As the People’s Republic emerges as an increasingly important source of finance for developing countries, Ambassador Dr Richard L Bernal, the Executive Director, Caribbean of the Inter-American Development Bank shines a light on Chinese investment in the Caribbean.
|Chinese investment in the Caribbean|
The growing economic involvement of China with the Caribbean countries has been primarily through development assistance in the form of loans financing construction projects. This form of engagement is common to China’s relations with developing countries. At the same time China has become a major source of foreign direct investment particularly in minerals, raw material and energy. Chinese foreign direct investment has been limited in the Caribbean because China has concentrated on financing public and private sector projects involving construction by Chinese firms.
China has been involved in financing private sector projects but has not taken equity in these projects. China’s Export-Import Bank of China is providing a 20 year, US $2.4 billion loan to finance a resort development in the Bahamas. Construction will be undertaken by China State Construction and Engineering Corporation. The Bank of China and the Foreign Trade Bank of China have also provided loan financing of $462 million to investors from Spain for the construction of a hotel in Punta Cana in the Dominican Republic. This has been accomplished although the Dominican Republic still recognizes Taiwan and does not have diplomatic relations with China.
This article continues on page 123 of the new issue of The Caribbean Property Investor magazine. Register for free to continue reading "Chinese Investment in the Caribbean" by Ambassador Dr Richard L Bernal.
For more information on Chinese investment in the Caribbean, take a look at some of the following articles:
"China Buys Inroads in the Caribbean, Catching US Notice"
New York Times, April 2012
"The Caribbean - A Chinese Beachhead?
The Economist, March 2012
"The Growing Economic Presence of China in the Caribbean"
Dr Richard L. Bernal, January 2011
Labels: Bahamas, Caribbean, China, Chinese investment, Dominican Republic, foreign direct investment, Guyana, Investment