No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeTopicsLatin AmericaChina's Influence Grows as Nicaragua Acts

China’s Influence Grows as Nicaragua Acts

In a move reflecting the ongoing geopolitical shifts in Central America, the Nicaraguan government on Wednesday ordered the closure of four associations with ties to Taiwan, intensifying its alignment with China. The decision comes two years after Nicaragua severed its diplomatic relations with Taiwan in favor of Beijing.

The affected entities include the Taiwanese Chamber of Commerce in Nicaragua and the Taiwanese-Nicaraguan Business Chamber. The Interior Ministry declared that all assets belonging to these associations would be transferred to state control. The government’s justification for this significant action was the alleged failure of these groups to submit their required financial statements under nonprofit law regulations, as stated in a notice published in the government gazette.

This development is part of a broader pattern since Managua reestablished diplomatic ties with Beijing in 2021. Since then, Nicaragua and China have forged stronger economic links, including a significant $430 million loan agreement for the construction of an international airport and a liquefied gas terminal in Nicaragua. Additionally, the two nations signed a free trade agreement last year, further cementing their economic partnership.

Beijing’s policy toward Taiwan has been a driving force in these diplomatic changes. The Chinese government views Taiwan as part of its territory and has not ruled out the use of force for unification. In the Central American context, only Guatemala and Belize continue to maintain diplomatic relations with Taiwan. Honduras was the most recent nation to shift its allegiance to China, doing so in March of the previous year.

The closure of these associations is also part of Nicaragua’s broader crackdown on NGOs, with approximately 3,500 organizations being shut down since 2018. This crackdown intensified following anti-government protests in 2018, which resulted in over 200 deaths during clashes with armed forces. The Nicaraguan government, perceiving these protests as part of an attempted coup allegedly backed by Washington, has tightened regulations governing non-profits, accusing some of being involved in these destabilization efforts.

Trending Now

Burger King Drops Mike Blanco Ad Over Harassment Allegations in Costa Rica

Burger King Costa Rica has cut all professional links with social media influencer Mike Blanco after reports emerged of alleged inappropriate contact with minors....

Guatemala Court Vote Deals Blow to Arévalo’s Push for Judicial Reform

The reelection of a magistrate accused of favoring criminals to Guatemala’s highest court once again delayed hopes of dismantling an alleged judicial network where...

Guatemala Attorney General Porras Fails Bid for Constitutional Court Seat

Guatemala's sanctioned Attorney General Consuelo Porras fell short in her attempt to secure a position on the Constitutional Court, receiving no votes in the...

Oil Price Surge from Middle East Conflict Raises Concerns for Costa Rica’s Economy

Oil prices climbed sharply this week as fighting in the Middle East intensified, with U.S. and Israeli strikes on Iran prompting retaliatory actions that...

Panama Canal Monitors Maritime Trade After Iran Conflict

The Panama Canal Authority said Monday it is tracking changes in global shipping patterns after U.S. and Israeli strikes on Iran triggered retaliation and...

Chaves and Fernández Predict Dollar Will Stay Low in Costa Rica

President Rodrigo Chaves and President-elect Laura Fernández say the U.S. dollar will stay at low levels against the colón. Both leaders point to steady...
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica