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Presidents of Cuba and China Celebrate Landmark Tie-Strengthening Summit19 Nov 08The Communist governments of China and Cuba further solidified their political and trade alliance this week, as a presidential meeting opened the door to a new wave of bilateral accords.
Cuba played host to Chinese president Hu Jintao for a 36-hour visit that brought him to meet his Cuban opposite Raúl Castro and the Cuban president's ailing brother and former leader Fidel. The visit was widely seen as an occasion to strengthen ties, as the governments proceeded with the inking of a series of accords and co-operation pacts in a wide array of sectors. The leaders were also keen to present an image of unity and concord, a feat helped by their respective governments' political affinities. Outpouring of Aid Hu's flying visit was a breath of fresh air for the Cuban government, struggling to cope with the massive recovery bill left by a damaging 2008 hurricane season. After Hurricane Paloma, following its more destructive predecessors Ike and Gustav, the estimated costs of repairing the damage rose to US$10 billion. The Chinese delegation brought along 4.5 tonnes of humanitarian aid, the third delivery of its kind since the hurricane season hit Cuba. Financial relief was also promised with the postponement of some of Cuba's debt obligations. The Asian giant also came with a fresh US$70-million loan to assist in the expansion and upgrade of the country's hospitals. Another US$10 million was granted to help finance a series of other projects on the island. The bilateral deals signed by the two countries include the confirmation of China's ongoing commitment to purchase Cuba's nickel and sugar production, a port and infrastructure rehabilitation programme, housing improvement and general recovery operations, along with biotechnology/scientific co-operation agreements. China’s Quest for Influence in Cuba and Beyond The Chinese president's trip to Cuba comes as part of wider efforts on the part of the former's government in Beijing to expand its links with Latin America, following in the wake of Hu’s visit to Costa Rica that paved the way for talks on a free-trade agreement (FTA) to commence in January next year (see China - Costa Rica: 18 November 2008: Trade Pact Negotiation Launched in China-Costa Rica Meeting). Following the Cuba summit, Hu will go on to hold talks with the Peruvian political leadership, and these are expected to lead to the inking of yet another FTA. The Chinese government is keen to expand its influence in Latin America, in a bid both to obtain access to natural resources to fuel its economic growth, and to penetrate developing markets to find an outlet for the country’s manufactured goods. China’s total trade with Latin America has grown from US$13 billion in 2000 to more than US$100 billion in 2007. This upward trend is also highlighted by the fact that China’s exports to Latin America increased by 52% over the first nine months of this year, reaching US$111.5 billion, according to Xinhua. Outlook and Implications With his visit to Cuba, President Hu has cemented already-close relations with China’s long-term ally. The two countries’ ties were for a long time driven by their shared Marxist trajectory of development, although Cuba nurtured stronger ties with the Soviet Union than China until the former’s collapse in 1991. China subsequently stepped in to provide vital economic support for Cuba, mainly in the form of soft loans—the majority of which are to elapse in the near future. With the economic reform drive that commenced with the establishment of special economic zones in 1978 under the rule of Deng Xiaoping—later to be known as “Communism with Chinese characteristics”—China has come to be an admired developmental model for many developing countries. Observers hold that Cuba's President Castro, who came to power in February after taking over from his brother and the country's long-time leader Fidel, is contemplating subscribing to China’s market economic model. However, he has officially upheld his commitment to a planned economy. Raúl Castro has nonetheless looked to foreign investment for potential exploitation of Cuba’s gold, silver, zinc, and copper deposits. This is of immense interest to China, which has over recent years been on a global quest to secure access to natural resources. The East Asian giant has already invested in nickel, which is Cuba’s main export, as well as hydrocarbons, producing the equivalent of some 80,000 barrels of oil and gas a day. However, China is not the only country with an interest in access to raw materials, with an upcoming visit to Cuba by Russian president Dmitri Medvedev in two weeks highlighting Sino-Russian rivalry in the strategic sphere. Both China and Russia are seeking to make inroads into the Latin American sphere of influence, long dominated by the United States. The Russian visit comes on the back of a similar trip to Venezuela, with the country continuing to cement relations with U.S. adversaries in the region. As for Cuba, it is actively seeking to further develop economic and political ties with a series of nations, Venezuela, China, and Russia forming its core team of allies. Venezuela is its closest trading partner, with the Asian giant coming second. The meeting with President Hu, to be followed soon by the Russian visit, is raising Cuba's trade and political profile. |
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