China Buys Costa Rica for $1.5 Billion

Discussion in 'China' started by SajeevJino, Jun 11, 2013.

  1. SajeevJino

    SajeevJino Long walk Elite Member

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    China Buys Costa Rica for $1.5 Billion


    Costa Rica and Laura Chinchilla just sold the soul of Costa Rica. The price tag was $1.5 Billion, but I guess we can add that to the running total which includes the national stadium.

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    Do not forget that this includes a $900 Million line of credit for an oil refinery on the Caribbean coast. Showing once again that the Costa Rica government is not really wanting to go “green” and be carbon neutral. It also shows once again they do not care about the Caribbean coast of Costa Rica.

    During an official visit by Chinese President Xi Jinping, the two countries signed nine cooperation agreements totaling $1.5 billion that will provide resources for improving Costa Rican roads and public transit fleets, purchasing solar panels and the building of a new police school.

    Costa Rica is the only Central American country that has diplomatic relations with China, the world’s second-largest economy, and has been rewarded with projects and visits by two sitting Chinese presidents since it first recognized the Asian giant over Taiwan in 2007.

    The refinery, in Puerto Limon, is small and old and refines about 18,000 barrels of imported crude a day. The remodel could boost production to 65,000 barrels a day, with the Chinese sharing in the profits. Costa Rica sought help from China in updating the facility.

    But the project is under debate as Costa Rican economists and politicians question the Chinese feasibility studies, and say the money would be better spent seeking alternative forms of energy.

    Rene Castro, minister of environment and energy, said that the agreement only means having a line of credit available and that Costa Rica’s government still has asked state universities for analysis to determine whether the project is feasible.

    The Chinese also ratified Costa Rica’s sanitary protocol to allow the export of pork to China, while the largest dairy business in the country, Dos Pinos, announced new exports of fresh and flavored milk.

    Costa Rican President Laura Chinchilla said her country will make the visa process more flexible to increase the number of Chinese tourists and business vistors.

    Foreign Minister Enrique Castillo said Costa Rica will speed up the process for Chinese who already have visas from other countries, such as the U.S. and European Union, and will add people in the Beijing and Shanghai consulates to process paperwork quicker.

    China has more than 100 million tourists traveling worldwide, Castillo said, noting that if Costa Rica could get 500,000 of them, it would boost tourism visits by 25 percent. Currently Chinese tourism to Costa Rica is very small because of visa problems.

    But the Costa Rica government is making sure these tourists are pushed to the Pacific Coast of Costa Rica. If there is an oil spill they are not worried as it will only hurt the a coast filled with people that the leaders of Costa Rica with their racism have deemed unimportant.

    But I am sure this president as well as some of the former presidents will have a nice retirement villa waiting after this term in office. Bought and financed by China.

    China Buys Costa Rica for $1.5 Billion | The Costa Rican Times
     
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  3. Abhijeet Dey

    Abhijeet Dey Regular Member

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    With $3 trillion foreign exchange, China set to buy influence
    Times of India Mar 27, 2013

    BEIJING: The new Xi Jinping government has sent three signals in the past two days expressing its determination to use China's $3 trillion foreign exchange treasury chest to buy international influence. This includes the new order for fighter jets and submarines placed with Russia.

    Almost immediately, premier Li Keqiang announced China will be importing $10 trillion worth of goods from the overseas markets in the next five years. Most of the imports will be financed internally without touching the foreign exchange reserves, which would result in massive amount of spending and a rise in China's ability to garner influence.

    A Chinese oil giant chimed in with the announcement of a $3 billion deal, which holds out promises of a spate of new energy deals. China is expected to enhance its buying spree for energy assets in different countries including Myanmar.

    The new moves might cause many countries seeking Chinese money to get positively-interested while some others would watch the new leadership's moves with concern, observers said. More so because Xi did what his predecessor, Hu Jintao, did not when he inked the first major arms deal with Russia in 10 years. In his meetings with Vladimir Putin during his just concluded Russia visit, Xi agreed to buy 24 Su-35 fighters and four Lada-class submarines from Russia. The Su-35 is currently the most advanced Russian fighter jet in mass production.

    There is an attempt to persuade China's neighbours, like India, that they should not be worried about the deal. "It is the natural, well-deserved fruit of bilateral defense cooperation, and both sides have made it clear that the bilateral strategic partnership is not targeting anyone," Li Hong, secretary-general of the China Arms Control and Disarmament Association, said.

    Premier Li made the announcement about $10 trillion worth of imports during a meeting with representatives from about 100 multinationals who attended the two-day China Development Forum in Beijing on Monday. "China will expand its opening-up policy and the nation needs to promote domestic consumption through continuing to open up its markets," Li said.

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    India should also increase its foreign exchange reserves to Trillion Dollars and compete against China.
     
  4. Yusuf

    Yusuf GUARDIAN Administrator

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    You can't do abracadabra and boom have a trillion dollars of reserves.
     
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  5. Keshav Murali

    Keshav Murali Back to studies :( Senior Member

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    @Yusuf, why did Russia sell the Su-35, of course it takes at least 3 years to reverse engineer an advanced jet and even if Sukhoi makes off handsomely, China becomes even more of a threat to Russia itself. Is Russia that desperate for quick money?
     
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  6. t_co

    t_co Senior Member Senior Member

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    The Costa Rica Times is owned by people closely associated with the School of the Americas - the primary lever of US influence in Latin America. It's not surprising they'd take such a hostile tone to a comparatively tiny line of credit to fix up an oil refinery, of all things - a repair job that would actually lessen the environmental impact the current old equipment causes to the Costa Rican coast.

    In return, the Costa Rican president isn't even agreeing to that much with China. Pork and dairy exports = selling out your country?
     
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  7. no smoking

    no smoking Senior Member Senior Member

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    Good idea!

    May I know how are you going to get these foreign exchange reserves?
     
  8. Abhijeet Dey

    Abhijeet Dey Regular Member

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    If Chinese can do it What's our excuse?
     
  9. Ray

    Ray The Chairman Defence Professionals Moderator

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    Three cheers for China buying up the Banana Republics!

    One cannot blame China if China buys up banana republics up for auction!
     
  10. nrupatunga

    nrupatunga Senior Member Senior Member

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    The article in opening post of the thread mentions this
    I am surprised by this, what about mexico?? Certainly cuba will be having diplomatic relations with prc for sure. Also lot of Caribbean countries will also have diplomatic relations with prc.
     
  11. amoy

    amoy Senior Member Senior Member

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    how is "cental america" geographically defined? it used to be a diplomatic battlefield btwn Mainland and TW. Costa Rica swapped side not many years ago. Nicaragua used to flip flop. Panama canal is run by a HK company.

    Sent from my 5910 using Tapatalk 2
     
  12. huaxia rox

    huaxia rox Senior Member Senior Member

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    the so called deal to purchase unstealth su-35 is fake news. what kept being signed is different kinds of framework agreements between russia and prc since 2000s when prc indeed real wanted to buy su35.
     
  13. Ray

    Ray The Chairman Defence Professionals Moderator

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    Where is the requirement to purchase?
     
  14. huaxia rox

    huaxia rox Senior Member Senior Member

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    things about another so called Banana Republic viewed by indians (i asume)


    China has better chance than India for joining Kashagan project: analyst - AzerNews

    China has greater chances than India for joining the project on the development of Kashagan, a giant oil field in Kazakhstan's sector of the Caspian Sea, according to a Kazakh analyst.

    Artyom Ustimenko said specialists close to the negotiations on Conoco's share in the project are of the same opinion.

    "China is a more reliable partner, having considerable financial potential to participate in such a capital-intensive project," the expert said.

    However, mixed public reaction to the expansion of China's economic presence in Kazakhstan "works against it," the expert told Azerbaijan's Trend news agency.

    Last year, Conoco Phillips announced plans to sell its 8.4 percent stake in Kashagan to Indian ONGC Videsh Limited for $5 billion. Other partners of the consortium did not use their pre-emption rights.

    Earlier Kazakh Oil and Gas Minister Sauat Mynbayev said that Kazakhstan has the option to resell Conoco's share to China.

    In mid-March, KazMunaiGas national company's executive Kurmangazi Iskaziyev told media that Kazakhstan should determine the purchase of Conoco Phillips' share in Kashagan by May 25, 2013.

    The Indian government has approved ONGC's proposal on May 27 to buy the 8.4 percent share in the Kashagan project from ConocoPhillips for $5.5 billion.

    Ustimenko said that after officially approving the preliminary conditions of the transaction, India informed Kazakhstan and openly supported ONGC's intention to buy ConocoPhillips' share in the North Caspian Operating Company (NCOC).

    "However, the Kazakh government is unlikely to unveil a final decision on the issue until early July, taking into account the country's retaining the right to acquire an asset," Ustimenko said.

    Moreover, while speaking at a briefing in Astana last month, board chairman of KazMunaiGas Lazzat Kiinov said that the national company does not intend to buy ConocoPhillips's share.

    "Our share of 16.8 percent is enough for us. We do not want to be major shareholders (in the project)," Kiinov said.

    He also confirmed Minister Mynbayev's remarks that the Chinese company takes an interest in entering the Kashagan project.

    "All the issues (as to who will get ConocoPhillips's share) are being studied," Kiinov added.

    Kashagan is one of the largest fields discovered in the past 40 years. Recoverable oil reserves of the offshore field are estimated at 11 billion barrels, whereas total geological raw material reserves stand at 35 billion barrels. Its natural gas reserves are estimated at over 1 trillion cubic meters.

    According to European Commission President Jose Manuel Barroso, the development of the Kashagan field is one of the largest joint projects of Kazakhstan and the European Union in the world in recent decades.

    Kazakh Minister of Economy and Budget Planning Yerbolat Dossayev said earlier that oil production at the Kashagan field might be postponed from June to early September in connection with the testing of equipment.
     
  15. amoy

    amoy Senior Member Senior Member

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    I never think Kazakh is a banana. It can be another Saudi Arabia! With the pipeline connected to China in place it's wise to sell the shares to China.
     
  16. xingapore

    xingapore Tihar Jail Banned

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    Thats really all that is up for sale at the moment. Its not like the US is up for sale.

    Pork anyone.
     

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