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Caribbean & Central America - September 2007 (ISSN 1741-4458)

REGION: China steps up campaign to displace Taiwan

China is making a concerted effort to oust Taiwan from its last bastion of strength in Central America. China gained a foothold on the isthmus on 1 June when Costa Rica decided to switch its allegiance from Taipei to Beijing. In late August, China staged a four-day trade exhibition in San José and pledged to open a trade office in the capital by the end of 2007. Significantly, this trade office will consider applications for assistance from Central American, not just Costa Rican, businesses. Conscious of China's diplomatic offensive, Taiwan's President Chen Shui-bian arranged a tour of Honduras, El Salvador and Nicaragua to coincide with the Chinese trade fair.

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