Improved Chinese Relations To Benefit Economy

Chinese President Hu Jingtao has heralded the advantages of closer economic ties between the east Asian giant and Costa Rica on a recent trip to Central America and the Caribbean. Costa Rica's President Oscar Arias decided to cut diplomatic ties with Taiwan last year to signal its support for Beijing, a move which we believe could result in greater financial and commercial linkages with China over the medium term. China has already agreed to loan US$300mn to the Arias administration via the purchase of sovereign bonds, and has also committed to build a new national sports stadium in San José.

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