News / Americas

    Cuba Hopes for More Investment as Chinese President Arrives

    China's President Xi Jinping, center, waves to the press accompanied by Cuba's Vice President Miguel Diaz-Canel, left, at his arrival at the Jose Marti International Airport in Havana, Cuba, July 21, 2014.
    China's President Xi Jinping, center, waves to the press accompanied by Cuba's Vice President Miguel Diaz-Canel, left, at his arrival at the Jose Marti International Airport in Havana, Cuba, July 21, 2014.
    Reuters

    Chinese President Xi Jinping begins a two-day visit to Cuba on Monday evening, stirring hopes on the island that China will finally invest in the country after a number of important deals never materialized.

    Xi is to meet with President Raul Castro on Tuesday and then fly to Santiago de Cuba to see plans to improve port facilities and recovery efforts from Hurricane Sandy, which devastated Cuba's second city almost two years ago.

    Xi was in Brazil last week for a summit of the BRICS nations, which also includes Russia, India and South Africa. He then traveled to Argentina and Venezuela, signing several multi-billion-dollar credit and investment agreements, before stopping in Cuba on his way home.

    Communist-run China and Cuba are close political allies.

    Generous trade credits have made China the island's largest creditor and second biggest trade partner after Venezuela at $1.4 billion last year.

    China has rescheduled Cuba's government and commercial debt, believed to top $6 billion. But large investment agreements for the nickel industry, signed in 2000, another in hotels, and a deal to expand an oil refinery agreed five years ago, have not materialized.

    Chinese-made cars, buses, locomotives, ships and household appliances are increasingly prevalent in Cuba. China's flag flies from leased oil rigs along the northwest coast and a modern container port boasts Chinese equipment, but direct investments are limited to a communications venture established 15 years ago and an onshore oil block in Pinar del Rio province.

    Chinese diplomats and businessmen have told Reuters over the years that they had little confidence in Cuba's ability to work efficiently with them, complained about the high cost of doing business, and said Cuba has balked at bringing construction crews in from China to build projects.

    Little of the $80 billion China has invested in Latin America and the Caribbean in recent years has been in Cuba.

    That, along with a review of debt and trade, will top this week's agenda.

    Raul Castro began instituting market-oriented reforms after taking over from ailing brother Fidel Castro in 2006, much as China did in the 1980s.

    This year, Cuba established its first Chinese-style special development zone and passed a more attractive foreign investment law with a particular eye to friendly nations such as Russia, China and Brazil. It includes a clause aimed at China that for the first time would allow investors to bring in their nationals for construction.

    Talks are reportedly underway for a number of investment projects, including in pharmaceuticals and automotive assembly, but no final investment agreements are expected this week.

    "The Chinese are not satisfied with the pace and depth of reforms in Cuba," said Christopher Sabatini, senior director of policy at the Americas Society and Council of the Americas.

    "This is ultimately a pragmatic government and it's not about to invest in Cuba for ideological reasons or even for geopolitical, long-term reasons if there isn't a profit or resource to be gained immediately," he said.

    You May Like

    Hope Remains for Rio Olympic Games, Despite Woes

    Facing a host of problems, Rio prepares for holding the games but experts say some risks, like Zika, may not be as grave as initially thought

    IS Use of Social Media to Recruit, Radicalize Still a Top Threat to US

    Despite military gains against IS in Iraq and Syria, their internet propaganda still commands an audience; US officials see 'the most complex challenge that the federal government and industry face'

    ‘Time Is Now’ to Save Africa’s Animals From Poachers, Activist Says

    During Zimbabwe visit, African Wildlife Foundation President Kaddu Sebunya says poaching hurts Africa as slave trade once did

    This forum has been closed.
    Comment Sorting
    Comments
         
    by: Wangchuk from: NY
    July 25, 2014 10:15 AM
    China might be willing to invest in Cuba but they will likely demand importing Chinese labor rather than use local Cuban labor. That's what China has been doing in parts of Africa and it has caused many problems. Next you will see Chinese consumer goods sold in Havana that will compete w/ local consumer products. In the end, the deals might benefit China but will not likely benefit Cubans.

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Ivorian Chocolate Makers Promote Locally-made Chocolatei
    X
    July 29, 2016 4:02 PM
    Ivory Coast is the world's top producer of cocoa but hardly any of it is processed into chocolate there. Instead, the cocoa is sent abroad to chocolate makers in Europe and elsewhere. This is a general problem throughout Africa – massive exports of raw materials but few finished goods. As Emilie Iob reports from Abidjan, several Ivorian entrepreneurs are working to change that formula - 100 percent Ivorian chocolate bar at a time.
    Video

    Video Ivorian Chocolate Makers Promote Locally-made Chocolate

    Ivory Coast is the world's top producer of cocoa but hardly any of it is processed into chocolate there. Instead, the cocoa is sent abroad to chocolate makers in Europe and elsewhere. This is a general problem throughout Africa – massive exports of raw materials but few finished goods. As Emilie Iob reports from Abidjan, several Ivorian entrepreneurs are working to change that formula - 100 percent Ivorian chocolate bar at a time.
    Video

    Video Tesla Opens Battery-Producing Gigafactory

    Two years after starting to produce electric cars, U.S. car maker Tesla Motors has opened the first part of its huge battery manufacturing plant, which will eventually cover more than a square kilometer. Situated close to Reno, Nevada, the so-called Gigafactory will eventually produce more lithium-ion batteries than were made worldwide in 2013. VOA's George Putic reports.
    Video

    Video Polio-affected Afghan Student Fulfilling Her Dreams in America

    Afghanistan is one of only two countries in the world where children still get infected by polio. The other is Pakistan. Mahbooba Akhtarzada who is from Afghanistan, was disabled by polio, but has managed to overcome the obstacles caused by this crippling disease. VOA's Zheela Nasari caught up with Akhtarzada and brings us this report narrated by Bronwyn Benito.
    Video

    Video Hillary Clinton Promises to Build a 'Better Tomorrow'

    Democratic presidential candidate Hillary Clinton urged voters Thursday not to give in to the politics of fear. She vowed to unite the country and move it forward if elected in November. Clinton formally accepted the Democratic Party's nomination at its national convention in Philadelphia. VOA national correspondent Jim Malone has more.
    Video

    Video Trump Tones Down Praise for Russia

    Republican presidential candidate Donald Trump is toning down his compliments for Russia and Vladimir Putin as such rhetoric got him in trouble recently. After calling on Russia to find 30.000 missing emails from rival Hillary Clinton, Trump told reporters he doesn't know Putin and never called him a great leader, just one who's better than President Barack Obama. Putin has welcomed Trump's overtures, but, as Zlatica Hoke reports, ordinary Russians say they are not putting much faith in Trump.
    Video

    Video Uganda Unveils its First Solar-powered Bus

    A solar-powered bus described by its Ugandan makers as the first in Africa has made its public debut. Kiira Motors' electric bus, Kayoola, displayed recently at a stadium in Uganda's capital. From Kampala, Maurice Magorane filed this report narrated by Salem Solomon.
    Video

    Video Silicon Valley: More Than A Place, It's a Culture

    Silicon Valley is a technology powerhouse and a place that companies such as Google, Facebook and Apple call home. It is a region in northern California that stretches from San Francisco to San Jose. But, more than that, it's known for its startup culture. VOA's Elizabeth Lee went inside one company to find out what it's like to work in a startup.
    Video

    Video Immigrant Delegate Marvels at Democratic Process

    It’s been a bitter and divisive election season – but first time Indian-American delegate Dr. Shashi Gupta headed to the Democratic National Convention with a sense of hope. VOA’s Katherine Gypson followed this immigrant with the love of U.S. politics all the way to Philadelphia.
    Video

    Video Dutch Entrepreneurs Turn Rainwater Into Beer

    June has been recorded as one of the wettest months in more than a century in many parts of Europe. To a group of entrepreneurs in Amsterdam the rain came as a blessing, as they used the extra water to brew beer. Serginho Roosblad has more to the story.
    Video

    Video Commerce Thrives on US-Mexico Border

    At the Democratic Convention in Philadelphia this week, the party’s presumptive presidential nominee, Hillary Clinton, is expected to attack proposals made by her opponent, Republican presidential nominee Donald Trump, to build a wall along the U.S.-Mexico border. Last Friday, President Barack Obama hosted his Mexican counterpart, President Enrique Peña Nieto, to underscore the good relations between the two countries. VOA’s Greg Flakus reports from Tucson.
    Video

    Video Film Helps Save Ethiopian Children Thought to be Cursed

    'Omo Child' looks at effort of African man to stop killings of ‘mingi’ children
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.

    Special Report

    Adrift The Invisible African Diaspora

    More Americas News

    Brazilian Drug Lord Found Serving Time in Paraguay Prison ‘VIP’ Suite

    Raided by authorities, three-room ‘cell’ was found to have library, kitchen, conference room and even a plasma television

    Uruguay Formally Ends its Presidency of Mercosur Trade Bloc

    Ministry statement said there are no legal arguments for blocking transfer of presidency to Venezuela, it stopped short of announcing that Venezuela would now lead South American group

    Court: Brazil's Lula to Stand Trial for Obstruction of Justice

    Brazil's ex-president officially a defendant in sprawling corruption probe focused on state-run oil company Petrobras

    Australian Olympic Team Evacuated for Dorm Fire

    Small fire in basement of team living quarters caused no injuries; quality of Olympic housing for athletes sparks complaints

    Hope Remains for Rio Olympic Games, Despite Woes

    Facing a host of problems, Rio prepares for holding the games but experts say some risks, like Zika, may not be as grave as initially thought

    Cambodian-American Swimmer to Compete at Rio 2016

    Brown University student said he hopes to break his previous record for the men's 100-meter freestyle at Olympic Games