No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeCosta RicaCosta Rica Says Hello to China, Goodbye Taiwan

Costa Rica Says Hello to China, Goodbye Taiwan

It was on a rainy June night that Costa Rican President Oscar Arias dropped a bombshell: Costa Rica was switching diplomatic relations from Taiwan to mainland China.

The move instantly ended a more than 60-year relationship with Taiwan that had yielded millions of dollars in aid and financial cooperation, plus a few scandals.

Thus, Costa Rica became the first Central American country to break off the isthmus’s historical friendship with Taiwan.

Some criticized the secrecy of the move, and the Taiwanese Embassy in San José issued a scathing statement accusing Costa Rica of turning on its friends.

The Arias administration, however, didn’t pay much attention, as its decision also formed what is swiftly becoming one of Costa Rica’s most important diplomatic relationships.

The last decade had set Costa Rica up for Arias’ historic decision. Trade with China had skyrocketed, and by 2006 Costa Rican exports to the Asian giant had crossed the $1 billion mark, led mostly by electronic components produced in Costa Rica’s Intel factory.

Today, China stands as Costa Rica’s second- largest trading partner, after the United States, and preliminary export numbers show exports to China continue to be some of the country’s most dynamic.

The establishment of diplomatic relations with China led to an immediate flurry of activity on the political front. In August, China staged a weeklong publicity blitz surrounding a trade fair here featuring 30 Chinese companies.

However, no mention was made that week of possibly toxic toothpaste and myriad toys made in China that were recalled from Costa Rica’s and other countries’ shelves this year, leading to concerns about consumer safety issues.

Soon after, Costa Rica’s Foreign Trade Promotion Office (PROCOMER) and the China Council for the Promotion of International Trade established offices in each other’s countries.

The governments of both countries established foreign embassies and sent ambassadors to the new posts.

Relations warmed further in October, when Arias made an official visit to China –the first such visit ever made by a Costa Rican President. During the weeklong trip, Arias visited Chinese monuments and met with the Chinese head of state, Hu Jintao.

The trip certainly paid off for Costa Rica. While there, Arias received a donation of $20 million in aid, some of which he pledged to spend on flood relief in areas damaged by heavy rains that month.

Arias later said he would use Chinese aid to build the biggest and best sports stadium in Costa Rica.

During the visit, China also pledged Costa Rica another $27 million in “technical and economic cooperation,” whose purpose was not laid out by year’s end.

Even more interesting – but also vague – is an agreement signed by the China National Petroleum Corporation to look into expanding Costa Rica’s oil refinery, and – possibly – erecting a new $6 billion regional refinery.

There were even rumblings that China is interested in exploring for oil in Costa Rica.

Costa Rica gained something like a mostfavored-nation status in China. That means that it joined Mexico, Peru, Cuba and Chile as one of the few Latin American countries promoted by China as a tourist destination for its rapidly expanding middle-class population.

Don’t expect a flood of Chinese tourists in Costa Rica anytime soon, however. Immigration restrictions make it extremely difficult for a Chinese person to get a Costa Rican visa, unless that person already has a visa from the United States or the European Union.

Trending Now

Hilton Debuts First All-Suites Hotel in Costa Rica at Cariari Site

Desatur Cariari S.A., the company that operates the Hilton brand in Costa Rica, has opened the Homewood Suites by Hilton Cariari in Belén, Heredia....

Former Trump Campaign Chief Involved in Honduras Politics

Trump's former campaign manager, Brad Parscale, provided advice to the campaign of Nasry Asfura, a right-wing presidential candidate in Honduras endorsed by the U.S....

Porter Airlines Inaugurates Toronto-Liberia Service in Costa Rica Expansion

Canadian carrier Porter Airlines touched down in Costa Rica for the first time, marking the launch of its new route between Toronto Pearson International...

Costa Rica Assembly to Vote on Chaves Immunity Lift

The Legislative Assembly has set December 16 for a key plenary session to vote on removing President Rodrigo Chaves' immunity. The move follows a...

Why Visiting North America Will Cost More for Costa Ricans in July 2026

Costa Rican families planning trips to the United States, Canada, or Mexico in 2026 face higher costs as the mid-year school break overlaps with...

Costa Rica’s Nayara Resorts Plans Eco-Friendly Beach Hotel in Manuel Antonio

Nayara Resorts, known for its high-end hotels and focus on green practices, has revealed plans for a new property in Manuel Antonio. The beach...
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica