Strengthening of Diplomatic and Economic Ties Between Panama and China (Post Taiwan Era)

[JimAndNena]

China's Future in Panama, and the New Margarita Island (Deep Water) Port

The recent agreement between China and Panama is going to have an effect on Panama's future. Whether that future is better or worse than what Panama has now will depend on what China's long range plans are. China is already buying large areas of Panama near the canal and has already made purchases that indicate where it is headed.

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Consolidating power in the Panama Canal

By Callum Wood • June 22, 2016

For more than 100 years, the Panama Canal has controlled the bulk of goods transferred between the Pacific and the Atlantic. For much of that history, this monumental feat of engineering was under the control of the United States. But this is no longer the case.

In May, Panama’s largest port was purchased by a Chinese company called Landbridge Group.

Margarita Island Port, on the canal’s Atlantic side, offers the company intimate access to one of the most important goods distribution centers in the world.

While promising to upgrade the ailing Panama facilities and offer more trade with America’s distant east coast, there is substantial reason to hesitate at the purchase of such a critical trade hub.

https://www.thetrumpet.com/13973-china-buys-panamas-largest-port

A year later we see that China has obtained the agreements to make progress with its One Belt One Road plan.  What will be next?

jim

 

Moderator comment: Here is the referenced news article:

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LUIS ACOSTA/AFP/Getty Images

Consolidating power in the Panama Canal

By Callum Wood • June 22, 2016

For more than 100 years, the Panama Canal has controlled the bulk of goods transferred between the Pacific and the Atlantic. For much of that history, this monumental feat of engineering was under the control of the United States. But this is no longer the case.

In May, Panama’s largest port was purchased by a Chinese company called Landbridge Group.

Margarita Island Port, on the canal’s Atlantic side, offers the company intimate access to one of the most important goods distribution centers in the world.

While promising to upgrade the ailing Panama facilities and offer more trade with America’s distant east coast, there is substantial reason to hesitate at the purchase of such a critical trade hub.

What Is Landbridge Group?

As readers of the Trumpet may know, Landbridge gained our attention late last year with the acquisition of the Port of Darwin in Australia’s Northern Territory. The aus$506 million lease guaranteed Landbridge control of the port for the coming 100 years. Many, particularly in Australia, criticized the deal, saying Landbridge had not been properly vetted.

And rightfully so.

The self-proclaimed “private” enterprise walks the same path as many Chinese companies—a path that is paved with the interests and aspirations of the Chinese government. Landbridge takes orders from the Committee of the Communist Party of China. The committee is designed to ensure that companies act in accordance with the party-state’s interests.

Landbridge ceo Ye Cheng is himself a senior member of the 12th National Chinese People’s Political Consultative Conference Committee. His deputy is a former officer in the Chinese military establishment. Landbridge also boasts its own militia. The company website reveals the creation of a “people’s armed militia”—not something one would usually associate with a private company.

Further highlighting the idea that Landbridge has deep ties with the Chinese military, the two have a history of cooperation. Much of Landbridge’s technology and scientific research has gone to the military. Landbridge even assists with problem solving and logistics during maritime military training exercises.

Panama, Here We Come

Now this company has signed a $900 million deal to control Panama’s Margarita Island Port.

Margarita is situated in the Colón Free Trade Zone. Since its founding in 1948, this trade zone has been a vital part of Panama’s economy. According to the zone’s website, annual imports and exports surpass $5 billion. Surrounded by airports, trains, ships and road transport, this commercial hub plays a pivotal role in the transport of goods from the Atlantic to the Pacific. It also impacts the north-south trade between the Americas.

The sea traffic through the port is substantial; more than 12,000 merchant ships visit the zone annually.

For Landbridge, this is a lucrative opportunity to expand China’s interests at this critical trade hub and establish itself as the gatekeeper for one of the world’s most vital sea gates.

Upgrades

Landbridge has big plans for Margarita—plans that involve building a deepwater port capable of docking larger ships that will soon sail through the Panama Canal. Upgrades to the canal will soon allow access to ships three times the size of current vessels. When the new locks open on June 26, the first ship to sail through the upgraded canal will be a Chinese tanker.

Now approved by the Panama Maritime Authority and Chinese consortium Panama Colón Container Port, the Landbridge project will cost an estimated $500 million up front and another $400 million for a high-quality logistics park.

According to Hellenic Shipping News:

The new project will consist of two parts, including the construction of a container terminal with a capacity of up to 2.5 millionteus (20-foot shipping containers) and the additional private lands with multipurpose possibilities, including lng facilities or energy projects.Featuring four berths, the Colón container terminal will have a total quay line of 1,200 meters [3,937 feet] with a draught of 18 meters [59 feet].

The Bejing-based Port Design Institute is set to design the piers.

The construction will be carried out by state-owned China Communication Construction Corp (cccc). The cccc is the world’s largest company in the infrastructure and engineering sector. Only last year it acquired John Holland, one of Australia’s leading engineering contractors, for more than a billion dollars.

According to the cccc website, the company and its subsidiaries engage in the design and construction of a vast array of projects around the globe, many of which serve to enhance China’s trade ties with the recipient nations. As we wrote in the May 2007 Trumpet:

In return for its investments, China is gaining control of ports and much-needed resources, such as iron ore from Brazil and oil from Venezuela. Beijing’s strategy is to secure sources for critical resources and the ability to transport those resources back to China. Toward this end, China recently opened a shipping route across the Pacific linking several ports in China with ports in Mexico, Colombia, Ecuador, Peru and Chile.

Again, it is no coincidence that we see a Chinese state-owned company taking a vested interest and hefty investment in a trade choke point like Panama.

An Ongoing Trend

Landbridge is by no means the first Chinese company to move into the Panama Canal. On March 1, 1997, Chinese corporation Hutchinson Whampoa took control of the American-constructed ports of Balboa and Cristobal.

Late Trumpet columnist Ron Fraser wrote extensively on this modern geopolitical phenomenon in the February 1999 Trumpet issue:

As we gaze toward the procession of container vessels stringing out across the Gulf of Panama, it seems the light has not yet dawned on the United States and the rest of the world to reveal the catastrophic nature of this deal involving Panama and the Red Chinese. …The temptation to yield to the Chinese buying off Panamanian loyalty by filling the cash vacuum left in the wake of U.S. withdrawal may prove too great a temptation for Panama to resist. The Chinese could readily squeeze further concessions out of the Panamanian government by such a process.

It was less than a year later that the U.S. officially handed over control of the canal to the Panamanian government. Flash forward 17 years, and today China owns and controls the majority of the ports and loading bays on each end of the canal.

Economic or Militaristic

When Landbridge acquired the Port of Darwin, many skeptics correctly pointed out that the purchase played into China’s broader foreign-policy goals. China’s string of pearls is heavily intertwined with the ambitions of the often-bellicose Chinese military. In order to extend a broader military reach or sustain a long-distance force, Beijing needs supply lines. Controlling crucial ports and sea gates such as the Panama Canal are pivotal for China. Not only does it ensure safe passage for its ships, but it also has the ability to deny enemy vessels.

Mr. Fraser explained:

The 50-year contract between Panama and Hutchinson Whampoa effectively places the ability to open and shut this great sea gate into the hands of an enterprise based in, and subject to, the influence and direction of Communist China. Not only has Hutchinson Whampoa been granted full control over the ports at both entry and exit points of the Canal, the Panamanian government has granted long-term options to this Chinese enterprise for the takeover of a number of military installations scheduled for evacuation by the U.S. …The potential threat to U.S. and world security posed by the apparent willing acquiescence of the current U.S. administration to the Panama-China deal is difficult for sensible minds to underestimate.

Landbridge’s acquisition of the Margarita port has flown well below the radar of most media sites. Few, if any, consider such a purchase in any way a threat. But each purchase and each new dock or pier is cementing China’s stranglehold on world trade.

Panama Canal in Prophecy

Long-time readers of the Trumpet magazine know that the U.S., Britain and the English-speaking Commonwealth nations have been the end-time recipients of the birthright promise of national greatness conferred by God upon the patriarch Abraham. For more information, request The United States and Britain in Prophecy.)

“[T]he most High ruleth in the kingdom of men,” as it states in Daniel 4:17. God promised Abraham approximately 4,000 years ago that his descendants would “possess the gate of his enemies” (Genesis 22:17; 24:60). In the last 200 years, that is precisely what we have seen. Britannia ruled the waves. The empire controlled Gibraltar, Malta, the Dardanelles, the English Channel, the vital Suez Canal, the Gulf of Aden, Capetown, Sri Lanka, the Strait of Malacca, Singapore and Hong Kong. America had the Panama Canal, a string of islands across the Pacific, a substantial presence in the Philippines.

Today it is almost all gone. Our enemies control our ports and sea-lanes.

In an interview with the Plain Truth magazine in the late ’70’s, Prof. Donald M. Dozer from the University of California gave a truly chilling statement:

Upon the defense of the Canal Zone by the United States depends the fate of the Canal. Upon the fate of the Canal depends the safety of world sea-lanes and the fate of the entire Caribbean-Gulf area. Upon these factors depend the survival of the United States as a free and independent nation and the safety and welfare of the American continents.

In the July 1977 Plain Truth article “America’s Strategic Surrender,” which contained excerpts from that interview, the author wrote, “The Panama Canal sea gate is part and parcel of America’s God-given birthright, and a necessary vital territorial ingredient which has ensured and protected our inheritance. If America’s politicians foolishly dispose of part of the national birthright for nothing [as they went on to do] it shows they place little value on the future of their country.”

Keep abreast of Chinese interests in ports and sea gates around the globe. Landbridge’s purchase is just one of many Chinese maneuvers to consolidate power over the world’s most crucial trade routes, and it brings our civilization one step closer to global calamity.

 

 

[Moderator_02]

Chinese investment projects likely to increase in Panama

By Tom on June 28, 2017 in News from Panama

Post Views: 44

 

Chinese firms are already involved in dozens of infrastructure projects in Panama. And that number is expected to increase with growing ties.

CGTN’s Roee Ruttenberg has more from Panama City.  See the article and video here

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Chinese investment projects likely to increase in Panama

Roee Ruttenberg

 

 

 

Published June 23, 2017 at 8:41 PM
Updated June 23, 2017 at 9:02 PM

Chinese firms are already involved in dozens of infrastructure projects in Panama. And that number is expected to increase with growing ties.

CGTN’s Roee Ruttenberg has more from Panama City.

Earlier this month, Panama’s President Juan Carlos Varela broke ground on a modern deep-water port in Colon. It’s being built by China Landbridge Group, a private firm that acquired the area next to the Atlantic entrance of the newly expanded Panama Canal.

“Today begins the most important Chinese investment in Panama with the construction of this terminal port in Isla Margarita in Colon an investment of around $700 million, a container port that can handle 2.5 million containers, with the capacity to receive the large Neopanamax ships,” Panamanian President Juan Carlos Varela said.

The next week, in Beijing, in a surprise move, Varela’s government announced it had established diplomatic relations with China. 

Meanwhile, on the other side of the Pacific, construction continued on Ciudad Esperanza, or City of Hope.

When completed in 2018, it’ll include more than 2000 homes, a university, and a government building.

A Chinese state-owned enterprise is overseeing the project on the outskirts of Panama City. Work began more than a year before last week’s announcement.

Panama’s government also asked the firm to take over another project in the capital. When it’s finished next year – rain or shine – the Amador Convention Center will be the largest in Central America. CCA said it’ll be the jewel of Panama, and of its work here.

The company is already bidding on three more government projects. And is looking at funding some of its own development projects in Pamana.

More are expected, as relations take off in the coming years.

Chinese investment projects likely to increase in Panama

By Tom on June 28, 2017 in News from Panama

Post Views: 44

 

Chinese firms are already involved in dozens of infrastructure projects in Panama. And that number is expected to increase with growing ties.

CGTN’s Roee Ruttenberg has more from Panama City.  See the article and video here

aadvisoryinternationalgroup.com/blog/news-from-panama/chinese-investment-projects-likely-increase-panama/

[Moderator_02]

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Panama deal likely to “finally scupper” Nicaragua canal: Chinese state media

in Port News 28/06/2017

China’s $1bn project to build a new deepwater port by the Panama Canal, which began days before Panama finally cut ties with Taiwan, is likely to “finally scupper” the controversial and long-stalled Nicaragua canal, an article in a Chinese state newspaper has claimed.

The company China Landbridge’s project to turn Margarita Island at the Caribbean mouth of Panama’s canal into the 13th largest container port in the world was called a “huge boost” for China’s Belt and Road initiative, in contrast to the plan by another Chinese company to build a $50bn transoceanic canal in Nicaragua, which has seen little progress since work was ceremonially launched in December 2014.

Following its cherished One China policy, China has rewarded countries that cut ties with Taiwan with generous infrastructure deals.

That made the decision of Nicaraguan President Daniel Ortega’s strident backing of Taiwan at the beginning of this year difficult to understand.

While not mentioning Ortega’s move, the article in the staunchly pro-Beijing newspaper Global Times reserved hard words for the Nicaragua canal, which had been heavily promoted by Chinese billionaire Wang Jing and his company HKND.

“Some saw it as a chance to rival the US-dominated Panama Canal; others saw it as a massively wasteful boondoggle that had little chance of succeeding,” wrote guest writer Chris Dalby, described as “Mexico-based analyst of Chinese politics and economics”.

Dalby went on: “Wang talked up the project regularly but he lost much of his fortune during the stock market crash of 2015 and there has been no recent evidence that the project is underway.”

The Landbridge deal, he said, “is also likely to finally scupper the controversial and troubled plans to build a new canal through Nicaragua”.

“The Chinese authorities did not formally back Wang’s project, and with the expanded Panama Canal presenting all the more opportunities, it would appear unlikely for them do so at all,” Dalby concluded.

The writer also said: “Although Landbridge is ostensibly a private company, its management is directly tied to the Chinese government, making it a good stepping stone toward diplomatic ties. For China, the deal makes complete sense.”

The Chinese government has remained resolutely silent on the Nicaragua canal, which has concerned scientists because of the environmental damage they say it would cause.

Appearing in the Global Times, considered a loyal mouthpiece of the ruling Communist Party, this article may be the clearest signal yet of Beijing’s stance – and of the demise of the Nicaragua scheme.
Source: GCR

 

http://www.hellenicshippingnews.com/panama-deal-likely-to-finally-scupper-nicaragua-canal-chinese-state-media/

[JudyS]

"Scupper"??? That is a drain on the side of a boat to let water out. Do you think they meant "scuttle"? Or are they metaphorically letting the water out of the Nicaragua canal plan? Odd use of a word. Now the question of why Panama abandoned Taiwan after a long friendship is answered. Wouldn't this deal be a security concern to the U.S.? Seems that nobody there has even noticed. 

[JimAndNena]

14 hours ago, JudyS said:

"Scupper"??? That is a drain on the side of a boat to let water out. Do you think they meant "scuttle"? Or are they metaphorically letting the water out of the Nicaragua canal plan? Odd use of a word. Now the question of why Panama abandoned Taiwan after a long friendship is answered. Wouldn't this deal be a security concern to the U.S.? Seems that nobody there has even noticed. 

Interesting wording.  I think I just read it as scuttle and missed it.

The port in Balboa has been run by Hutchison Whampoa Ltd since approved by former President Bill Clinton. China is renowned for patience, perhaps this next step is part of the OBOR plan?

http://www.reuters.com/article/panama-ports-idUSL2N0S601220141011

jim

[JudyS]

So now China will control ports on both ends of the canal.

[Moderator_02]

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Chinese Banks Interested in Panama

Representatives of the banking guild say that since the reestablishment of diplomatic relations, banks in the Asian country have expressed interest in the Panamanian market.

Friday, September 8, 2017

Although the conditions and legal framework in which correspondents of large international banks operate in the country still need to be improved, representatives from the banking sector believe that the arrival of Chinese financial companies would help accelerate this process of improvement.

The president of the Banking Association of Panama (ABP), Carlos Eduardo Troetsch, commented that the arrival of Chinese banks "... is a great opportunity for Panama." Although the president of the ABP admits that there is a route to be taken regarding the issue of correspondent banks, he stated that the country has been improving."

Elfinancierocr.com reports that "...For Troetsch it is an issue that remains important, and soon he will start to travel to present correspondents and regulators with the new initiatives and the situation in Panama. He added that there may be 80 to 300 banks in the country that have relationships with correspondents with Panama."

 

http://www.centralamericadata.com/en/article/main/Chinese_Banks_Interested_in_Panama

[Moderator_02]

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FM's to visit Panama under new diplomatic ties

Published: 12.09.2017
Pulse News Agency International by AFP

 play

Chinese Foreign Minister Wang Yi meet with Panamanian President Juan Carlos Varela on Saturday

(AFP/File)

Chinese foreign minister Wang Yi will visit Panama at the end of this week, according to officials -- three months after the countries established diplomatic ties at the expense of Taiwan.

Wang will lead a delegation aimed at "advancing the bilateral agenda of Panama and China," including on tourism exchanges, trade links and the maritime environment, the Central American nation's foreign ministry said in a statement.

He will meet with Panamanian President Juan Carlos Varela on Saturday.

Varela announced his country had opened diplomatic relations with China on June 12, upgrading ties previously focused only on trade.

That automatically ruptured diplomatic relations with Taiwan, which China regards as a renegade province.

China is the second-biggest user of the Panama Canal after the United States.

 

http://www.pulse.ng/news/world/in-china-fms-to-visit-panama-under-new-diplomatic-ties-id7296996.html

[Keith Woolford]

Chinese Embassy Inaugurated

Big weekend for diplomacy and trade in Panama as the Chancellor of the Republic of China is visiting and today officially opened the state's new Embassy here.

Trade discussions were also held and Panama signed agreements for $39 million worth of exports.https://twitter.com/JC_Varela/status/909429085209800704

 

https://twitter.com/prensacom/status/909418263972544512

 

https://twitter.com/CancilleriaPma/status/909196062178648064

 

[Moderator_02]

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Panama’s role  in  China’s silk roads

Posted on September 17, 2017 in Business, Panama, Panama, World

Post Views: 255

THE ESTABLISHMENT of trade relations between Panama and China, on June,12 not only has a direct impact on the commercial and investment field of the Isthmus but also incorporates Panama into the Chinese initiatives that will change the world in the coming years.

This was highlighted  at a Panama Canal Authority (ACP) forum on container movement by Eddie Tapiero, of the Authority’s the Economic Unit

The ‘One Belt, One Road’ (OBOR), also known as the ‘Silk Road’, -the historic route that Marco Polo  traveled, is an economic corridor that crosses from Asia to Europe by land and represents the largest movement of containers along with another sea route that arrives in Africa, and is called the Silk Maritime Route of  the XXI Century.

Reopened by China in 2013 with Europe as the final destination, the analyst argues that with Panama in the game, the Channel offers multiple and new opportunities for connectivity.

“Once the construction of the infrastructure planned for these routes (new ports, railways and free zones) is completed, Europe will not only be consumers of the products coming from China but will become a center for the collection and distribution of the commodities. Because of its access to the Atlantic,  Panama could take advantage of that trade, but, Panama can also take advantage of the Pacific side, to materialize its entry to the Pacific Alliance,” he said.

The Silk Road and its impact on trade in Asia and Europe should not be left aside, instead should review long-term state strategies, so that economies, both China and Panama, continue to strengthen.

China,  says Tapiero sees the need to revive global economic growth because after the mortgage crisis of 2008-09 and sovereign debt in Europe in 2010, “Economic crises limited the growth of developed economies and this was reflected in the growth of the global economy,” he said.

New model”
It is a new business model of globalization in the world and Panama should not be alien to it. The US as the main partner of all countries in Latin America needs to be part of the initiative, With all the players working towards the same goal, the countries will achieve a balance in their strength and stability in the long term, “he predicted.

“For Panama, the establishment of relations with China arrives just in time. This action offers China greater legal certainty for its investment and allows Panama to form an integral part of the OBOR-silk route, ”

 

http://www.newsroompanama.com/business/panamas-role-chinas-silk-roads

[Moderator_02]

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Panama-China links boost to economy

Posted on September 17, 2017 in Panama, Panama

 

Chinese Foreign Minister Wang Yi . President Varela snd Panama Chancllor Saint Malo

Post Views: 262

CHINESE Foreign Minister Wang Yi was in Panama during the weekend for the unveiling ceremony of the Chinese Embassy marking a new chapter in bilateral relations.

Wang was welcomed in the presidential palace by President Juan Carlos Varela .The meeting marks the first visit of a Chinese foreign minister since the establishment of diplomatic relations between the two countries in June.

Over the past three months there has been a boost in bilateral relations.

In the run-up to the official ceremony scheduled for Sunday, China and Panama have signed business agreements estimated to generate about $38 million in trade and investment, which official said gives rise to great expectations in business between China and Central America.

“Panama is a gateway to the Americas, and we believe that many Chinese companies will be able to leverage Panama’s logistic infrastructure, as a hub to get products to the region, the same way the region can use Panama to get products to China. So this is just the beginning not only for the Panama but the region, a historic day,” said Augusto Arosemena, Panama’s Minister  of   -Commerce and Industry .

Wang Weihua, charge d’affaires of the Chinese Embassy in Panama, hoped that Panama’s pledge to adhere to the One China principle and to sever the so-called “diplomatic relations” with Taiwan could help clear the way for other countries in this region to also establish ties with China.

“Panama’s decision sets an example and sends a very clear message to other countries in Central America and the Caribbean, that little by little, the One China Principle is being recognized by the whole international community,” he said.

China and Panama have had significant commercial relations for decades and hope the newly-established diplomatic relationship will help boost trade and cooperation.

Chinese companies are already involved in dozens of infrastructure projects in Panama, such as the $700-million investment in the construction of a new deep-water container port in Isla Margarita near the Caribbean entrance to the Canal. Another project is the development Ciudad Esperanza including more than 2,000 housing units, a university, and government buildings, and two China-led consortia are bidding for the contract to build the $1 billion fourth bridge over the Canal.

 

http://www.newsroompanama.com/business/panama-4/panama-china-links-boost-economy?utm_source=feedburner

[Moderator_02]

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Panama-Chinese relations on fast track

Posted on September 30, 2017 in Panama

A China -London bullet train -Chiriqui dream

Post Views: 254

By Kent Davis

SINCE establishing diplomatic relations earlier in the year, China has been in the news in Panama on an almost daily basis.

Favored nation status

Take for example this week’s announcement that the two nations are considering giving Panama-flagged ships “favored nation status” in China harbors, no doubt on a quid-pro-quo basis.  And last month, also on the trade front, Panama announcing new trade agreements to the sum of $38 million dollars based on the 18 Chinese companies who visited Panama and met with local exporters.

And the biggest news of all is that Panama is courting China to design, fund, and build a rail system connecting the western city of David in the province of Chiriqui to the nation’s capital in Panama City.

This, of course, is akin to newlyweds dreaming about their first home and starting a family together.  Right now, it’s just that…a dream.

But Panama is definitely in the honeymoon stage with China, and anyone who lives in Panama City can attest to the fact that there are more Chinese nationals (who are easily identifiable from their local, mostly Cantonese-speaking counterparts who have been here for generations) in the city’s hotels, shopping malls, and business centers conducting due diligence.

So what’s to be expected of this new courtship?

Well for starters, exporters of products like coffee, wood, scrap metal, and seafood are seeing immediate results in the form of the aforementioned purchase-orders of $38 million.

Free Trade Zone owners, hard hit by a drop in global trade and a soured relationship with neighbors Colombia and Venezuela are licking their lips at the possibility of re-establishing Panama as a gateway for China into Central America and even South America.  They’ve seen a double digit increase over the last 6 months, although it’s hard to say how much of that is related to the new China ties.

Real estate
On the real estate front, my company has seen an uptick in interest from Chinese neighbors, including Singapore, Vietnam, and quasi-Chinese Hong Kong.  They, like the Chinese, usually move slowly, but when they do move, they move in a big way and the kind of conversations we are having with visiting family offices, investment advisors, and wealthy buyers lead me to believe that there are a lot of people who now have Panama on their radar.

And Panama property prices, although they may not feel that way for anyone who has been here for more than 10 years, are still “cheap” for someone coming from Shanghai, Hong Kong, and Singapore, where prices start at around 3 times what they are in Panama.

At the end of the day, it’s a trend to follow and rest assured, we’ll be following it very closely because if Panama takes off like Vancouver, Toronto, or San Francisco has, then we’re in for a wild ride.

Kent Davis is managing director of Panama Equity Real Estate and an occasional Newsroom contributor

 

http://www.newsroompanama.com/news/panama/panama-chinese-relations-fast-track

[Moderator_02]

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China Republic first ambassador to Panama

Posted on October 24, 2017 in Panama

Post Views: 62

THE FIRST  ambassador of the People’s Republic of China to  Panama, Wei Qiang, presented his credentials to President Juan Carlos Varela on Tuesday, Oct. 23.

Varela, was accompanied by the vice president and chancellor, Isabel de Saint Malo de Alvarado.

The Chinese diplomat has worked for the Directorate of Latin America and the Caribbean. He also served in Chile, Colombia and as ambassador to Barbados.

Panama and the People’s Republic have started a relationship in June that led to the departure of the Taiwan embassy.

The history of the two countries goes back to the beginning of the construction of the railroad and the Panama Canal and since that time Chinese descendants have become part of the economy, gastronomic, ethnic and cultural history of the nation says La Estrella.

In mid-November, President Varela will make an official visit to China whose leader was described this week by The Economist, as the most powerful man in the world.

Other ambassadors
Other ambassadors who presented credentials were Diamon Potter, (United Kingdom); Lupo del Bono, (Malta) Brice Roquefuil (France) Ibrahim Mohammed Juma (United Arab Emirates).

Other representatives who presented their credentials were Michel Dewes (Belgium) Leszek Bialy (Poland) and Alfredo Pineda(El  Salvador)

 

http://www.newsroompanama.com/news/panama/china-republic-first-ambassador-panama

[Moderator_02]

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Varela China bound with large delegation

Posted on November 10, 2017 in Panama

Post Views: 152

PRESIDENT  Juan Carlos Varela will be accompanied by a large delegation when he heads to China on Tuesday, November 14.

It is the first official tour of that country since Panama established diplomatic relations with China.

Varela said he will travel with five ministers and a  business delegation. Among those attending  are the

vice president and chancellor Isabel de Saint Malo de Alvarado; Ministers Dulcidio De La Guardia, Economy and Finance; Augusto Arosemena, Commerce and Industries; Alexis Bethancourt, Public Security; and Gustavo Him, from Tourism.

Rolando López, director of the National Security Council will also travel; Jorge González, Secretary

of Goals; Gilberto Ferrari, manager of the Electric Transmission Company; Diego Vallarino, from the board

of the National Bank, are among other officials.  The first lady Lorena Castillo Varela will also travel

The president announced that on November 17 they will sign agreements already reached on issues of

air connectivity, installation of companies, tourism, culture and education.

Chinese companies have been involved in bidding for major structural projects in Panama, including the $1 billion fourth canal bridge.

Newsroom will have video coverage of the highlights of the visit.

 

http://www.newsroompanama.com/news/panama/varela-china-bound-large-delegation

[Moderator_02]

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Business leaders swell  China  bound team to over 60

Posted on November 14, 2017 in Panama

Post Views: 157

AT LEAST 47 businessmen, bankers and lawyers will accompany President Juan Carlos Varela and his team of some 17 government ministers and officials on their trip to China.

Among  those on  a list released Tuesday, November 14 by The Ministry of Commerce and Industries (Mici) are: Rogelio Alemán (Constructora Urbana, S.A./CUSA), Hermán Bern (Bern Companies), Iván Cohen (Do it Center), Joseph Findanque (former manager of Tocumen, S.A.), Max Harari (Harari Group), Fred Kardonski (Towerbank), Ashok Nandwani (Panafoto), Victor Pérez, father and son (Procasa), Janet Poll (El Machetazo), Aimee Sentmat (Banistmo), Steve Tarazi (Colón 2000) and Pedro Peter Vallarino (Airco).

Also participating is a Chinese Panamanian delegation, which includes Enrique Yao (Grupo Casa Material), José Pan (Econoprecio Furniture and Asociacion Jóvenes Fa-Yen), Roberto Huang (Tecno Group and Asociación WuYi of Panama), Willy Wen (Chinese Association of Panama), Angel Wu (Angel House and Chinese Association of Panama West) and Jaime Yao (Textile Importers, S.A. and Asociación Etnia China Panamá).

 

http://www.newsroompanama.com/news/panama/business-leaders-swell-china-bound-team-60

[Moderator_02]

This is a cross-reference to a related posting in another forum.

 

[Moderator_02]

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Promising Features of the China - Panama Alliance

Flights between the Asian country and Tocumen, a feasibility study to build a train to the border with Costa Rica and cooperation in financial, energy and maritime matters, are some of the results on offer from the agreements signed between the Chinese and Panamanian governments.

Monday, November 20, 2017

Since the breakdown of Panama's diplomatic relations with Taiwan and the new relationship with the Asian giant was announced in June of this year, the possibilities of creating and developing new business in Panama have multiplied, due to the implications that greater involvement in terms of investment by China would have for the country and the region. 

See: "Goodbye Taiwan, Hello China"

The 19 agreements signed between the Varela administration and the Xi Jinping government cover practically all economic sectors, from financial cooperation through the banks Exim Bank and Bank of China for energy development in Panama, to sanitary and phytosanitary measures, development of economic and commercial zones, and the inclusion of Panama as an approved tourist destination.

Although Panama is not the first country in the region to reestablish diplomatic relations with China, it is the only country that has the necessary logistical and commercial conditions to become an ideal platform for Chinese investments. 

From a statement issued by the Presidency of Panama:

The relationship between the Republic of Panama and the People's Republic of China has taken on a new dynamism after a historic meeting between its leaders, Juan Carlos Varela Rodríguez and Xi Jinping, the first after the establishment of diplomatic relations, and in which they committed to continue strengthening their ties in search of the welfare of their populations.

The governors witnessed the adoption of some 20 documents, including 19 agreements and a Joint Declaration, which lay the foundations for this new stage and pose a new diplomatic, economic, commercial and tourism panorama for Panama.

Real full release (in Spanish).

 

https://www.centralamericadata.com/en/article/main/Promising_Features_of_the_China__Panama_Alliance

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Panamanian Livestock Farmers Exploring Business in China

In January 2018, a delegation of businessmen from the livestock sector will be visiting the Asian country to develop new commercial alliances to increase exports of bovine meat.

Wednesday, November 22, 2017

Panamaamerica.com.pa reports that "...According to the president of the National Association of Cattle Ranchers (Anagan), Aquiles Acevedo, the aim of the visit is to look for new alternatives for exporting bovine meat. Acevedo explained that the Anagan will invest in livestock and raw materials, while the Chinese will provide the marketing, which is another way to export meat."

See also: "The beef market in Central America"

The idea of livestock producers, who will visit China along with authorities from the Ministry of Agricultural Development (MIDA), is to create an alliance in which they invest in raw materials and livestock, and counterparts in China will develop the market. Acevedo indicated that "... one of those alternatives is the construction of a slaughterhouse under a 'Joint Venture' scheme." 

"... From January to August, beef exports amounted to $12 million, according to figures from the Anagan."

 

https://www.centralamericadata.com/en/article/main/Panamanian_Livestock_Farmers_Exploring_Business_in_China

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Panama - China Maritime Agreement 

Vessels sailing under the Panamanian flag will receive benefits in port tariffs and preferential treatment in ports in the People's Republic of China.

Thursday, November 23, 2017

From a statement issued by the Presidency of Panama:

Panama reaffirms its leadership in merchant marine matters by receiving the status of "Most Favored Nation", with which vessels under their registry will receive benefits in port tariffs and preferential treatment in ports in the People's Republic of China.

This was stated in the maritime cooperation agreement signed within the framework of the first official visit by President Juan Carlos Varela, after the establishment of diplomatic relations with China on June 13.  Both countries signed another 18 agreements related to financial, commercial, logistics and cooperation matters. 

Read full release (in Spanish).

 

https://www.centralamericadata.com/en/article/main/Panama__China_Maritime_Agreement

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Panama-China deal needs more than optimism

Posted on November 26, 2017 in Panama

Post Views: 121

PANAMA’S Chamber of Commerce, Industries and Agriculture (CCIAP) has given a qualified endorsement to the recent signing of 19 agreements with China.

The chamber describes the signing as positive but added that “Panama must introduce adjustments important to achieve the agreed benefits. “This, since it  deals with a terrain in which one must work with more responsibility than with simple enthusiastic optimism, ”

The approach of the business body  arises  because  in the past  Panama has obtained very limited benefits from similar treaties in regard  to the export of goods, and  productive sectors such as agriculture and livestock and industrial”. have been marginalized  during various administrations,

The Chamber said Sunday, Nov 26, that, as long as this prevails, “our export offer will not generate the resources that can be expected from this opportunity. ”

“In addition, there are the demands that China imposes on its imports, which we must satisfy on time, “it adds According to the CCIAP, the partnership with China “should enhance our competitive advantages if we put in a vision of a committed State in the long term -not five-year- with the development of the country. For this, it is necessary to include the preparation of our human resources through modern models that exceed obsolete canons.

“In any case, our biggest challenge in reaching  the first world is the ability to compete with efficiency and quality, especially when in the region other actors look for opportunities like these … it will require extraordinary efforts.

This month, Panama and the People’s Republic of China signed agreements related to trade, agriculture, tourism and the maritime sector, as part of a tour that President Juan Carlos Varela made from Nov. 14 -22

 

http://www.newsroompanama.com/business/panama-4/panama-china-deal-needs-optimism

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Panama's president emphasizes new ties with China in state of nation address

Source: Xinhua| 2018-01-03 10:00:52|Editor: Chengcheng

 

PANAMA CITY, Jan. 2 (Xinhua) -- Panamanian President Juan Carlos Varela Tuesday highlighted the newly established diplomatic ties with China as one of the major accomplishments of his past year in office.

"2017 was successful for Panama and Panamanians," Varela said in his state of the nation speech to the National Assembly, adding the establishment of diplomatic ties with China last June was "one of the most important international developments with positive outcomes for our country."

Varela said his administration, which has been in power for three and a half years, aims to complete the construction of a new convention center in the capital with a Chinese firm's help.

China Construction America will construct the Amador Convention Center in conjunction with Panama's Construcciones Civiles Generales.

In October, China Harbour Engineering Company and Belgium's Han de Nul formed Cruceros del Pacifico, a consortium to build a passenger cruise ship terminal on Panama's Pacific coast.

Varela also said Panama was expected to maintain its last year's growth rate of 5.6 percent in 2018.

 

http://www.xinhuanet.com/english/2018-01/03/c_136868605.htm

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China’s beachhead “invasion”  of Panama

Posted on January 20, 2018 in Panama, World

Post Views: 240

 

The Chinese commercial invasion of Panama is already underway according to Critica with  Shacman, the country’s leading maker of trucks and heavy equipment, exhibiting its range of products to the local market at the Machine Expo 2018 at Atlapa.

The fleet includes high resistance vehicles, designed for all types of terrain. Shacman was founded in 1968 and was the first Chinese automotive company authorized to import Western technology. With two Chine companies bidding for the over $1 billion fourth bridge over the canal, and with a high-speed rail system to Chiriqui under review, Panama can expect to see lots of Shacman heavy-duty products, joining the growing number of Chinese made cars on the road.

 

http://www.newsroompanama.com/business/panama-4/chinas-beachhead-invasion-panama

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Panama to Issue Debt in China

The Ministry of Finance is considering issuing up to $500 million in debt securities in the Chinese securities market, in order to take advantage of the lower borrowing costs offered by the Asian market.

Thursday, March 15, 2018

The advantage is that, according to Minister Dulcidio De la Guardia, " ... after changing the money to dollars, it is possible that the country could reduce by a quarter or half a percentage point the rate it would need to pay for a bond in dollars with equivalent maturity."

The issue of these "panda" bonds could be up for an amount of up to $500 million and a term of less than 10 years, and would be made in the second half of this year, if the financing conditions are adequate. The bonds would be mainly aimed at Chinese investors.

Prensa.com reports that Panama also "... plans to resort to the bond market in dollars to raise at least one billion dollars before the end of June, and is also trying to attract a larger portfolio of investors to its domestic market, according to De la Guardia. "

 

https://www.centralamericadata.com/en/article/main/Panama_to_Issue_Debt_in_China

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More Air Conditioning Equipment from China

From January to September 2017, companies in Panama imported $52 million worth of air conditioning equipment, and imports from China grew by 52%.

Tuesday, March 27, 2018

Figures from the information system on the Market for Air Conditioning Machines in Panama, compiled by the Business Intelligence Unit at CentralAmericaData:

Changes in imports
Between the first nine months of 2016 and 2017 the import value of air conditioning machines in Panama decreased by 2%, falling from $53 million to $52 million.

However, for the months in question over the last 6 years imports of these items from China grew from $6 million in 2012 to $12 million in 2017, which represents an average annual rate of increase of 17%.

Origin of imports
In the first three quarters of 2017, 30% of the import value came from the USA, 24% from China, 8% from South Korea, 5% from Malaysia, 2% from Spain and 1% from Taiwan.

South Korea is the market of origin of imports that has grown the most in the last 6 years. In 2012 it represented 2% of the total import value, and in the first nine months of last year this figure rose to 8%.

 

https://www.centralamericadata.com/en/article/main/More_Chinese_Air_Conditioning_Equipment

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Panama geisha coffee growers targeting China

Posted on March 29, 2018 in Panama, Panama

Post Views: 164

 

PANAMA coffee growers who to produce the world’s finest and most expensive specialty coffees which can cost hundreds of dollars a pound is targeting  China which has the potential to become its biggest export market.

Varieties of some of its most exotic products like geisha, bourbon and catuai coffee produced by eight companies are on display at Hotelex, the XXVII International Exhibition of Equipment and Food Services in Shanghai attracting baristas, tasters, and buyers from across Asia.

The participants are Hacienda Esmeralda, Elida Estate, La Mula, Finca Lérida, Hi Cofee, Geisha Farm, Don Pachi Estate and Café Volcán Barú.

The director of exports of Panama’s Ministry of Commerce, Jorge Suárez, said  China, one of the most important markets for geisha coffee.

In 2017, the special geisha coffee, the star of Panama’s coffee production, was sold at a record price of $601 per pound (454 grams) at the XXI The Best of Panama electronic auction.

In 2016, coffee represented 0.6% of total food exports, increasing to 1.2% for 2017, going from $3.558 million to $7.604 million dollars, according to official figures.

The current main destination countries for Panamanian coffee exports are Germany, Australia, South Korea, the United States, the Netherlands, Japan, Italy and Taiwan.

 

http://www.newsroompanama.com/business/panama-4/panama-geisha-coffee-growers-targeting-china