A view of a fruit market in Colombia in March. Photo: VCG

Despite being caught in the middle of a geopolitical tug of war between Beijing and Washington, Colombia is likely to approach the huge Chinese market, as can be seen in the recent state visit by its President Ivan Duque who wants to enhance trade and encourage China to buy more agricultural products.

President Xi Jinping and President Duque hold talks in Beijing on Wednesday afternoon, in which they conducted in-depth and broad exchanges of views on bilateral relations and regional and international issues of common interest and reached an important consensus, Zhao Bentang, an official with the Ministry of Foreign Affairs, told a briefing.

Economic and trade relations between China and Colombia are expected to rise to a new level with more cooperation not only in traditional sectors such as infrastructure and energy, but also in emerging businesses like modern agriculture and the digital economy, heads from both countries agreed, according to Zhao.

A total of 12 documents were signed between the two countries covering sectors like agricultural investment and trade, transportation, e-commerce, imports of avocados, 5G and finance, the official said.

Bilateral trade has been limited in previous years and about 80 percent involved traditional industries such as oil, energy and minerals, Duque told business leaders from both countries in Beijing on Wednesday. It is Duque's first state visit to China since he was elected Colombia's president in 2018.

But the diversification of China-Colombia trade will be highlighted as drivers can be seen in sectors like tourism and agriculture, Duque said.

The first direct flights between China and Colombia are expected to be launched next year. The president noted that about 15,000 Chinese travelers visited Colombia last year and expressed the hope that the number can increase five times.

"We have signed agreements to bring banana and avocados to China soon and hope other products like coffee and pork from Colombia can enter the Chinese market," Duque said.

China is willing to cooperate in the launch of direct flights and will also actively look into the matter of pork imports, Zhao told the Global Times.

The first batch of Hass avocados, which will be carried in five containers and be worth $200,000, will be shipped to China by December, Corpohass Executive Director Jorge Enrique Restrepo told the Global Times on Wednesday.

China's avocado imports mainly come from Mexico, Chile and Peru and Colombia wants to seize the opportunities of the nation's fast-growing market, he said.

By the end of 2018, China had become Colombia's No.2 trading partner and Colombia was China's eighth-largest trading partner in Latin America. 

Bilateral merchandise trade rose 29.2 percent year-on-year to $14.6 billion last year, according to information released by China's Ministry of Commerce (MOFCOM). The two countries also plan a feasibility study on a free trade agreement.

Chinese firms welcomed

Although trade tension between China and the US has affected global trade, it also means growth opportunities for Colombia, Minister of Commerce, Industry and Tourism of Colombia Jose Manuel Restrepo Abondano told the Global Times on Wednesday.

For instance, Chinese companies could move to Colombia so that their exports can enjoy favorable export tariff treatment via the Colombia-US free trade agreement, he said.  

Chinese enterprises including Huawei and ZTE are more than welcome in Colombia no matter whether they take part in infrastructure construction or investment, the minister said.

"There are no concerns about security threats brought about by companies like Huawei and ZTE as we have met these companies that have a presence in Colombia," the minister said, noting "as long as the Chinese companies can win public bids, Colombia warmly welcomes them."

The Latin American country is trying to forge a sound business climate to lure Chinese investors and so far 70 Chinese companies have established a presence in Colombia, such as ZTE, Huawei, Foton, Sinopec and China Harbour Engineering.

For instance, China Harbour Engineering won a construction contract for a project called Mar2 in 2015, as part of the country's 4G highway concession project.

A Chinese businessman surnamed Wu expressed his interest in doing business in Colombia, but worried that factors such as "the investment environment, cultural barriers and social safety" would bring challenges.

Busy ports, advanced infrastructure facilities and favorable tax policies provide Chinese investors opportunities in the South American country, experts said. 

Colombia entered new development phase after its government signed a peace deal with the country's main rebel group in 2016, which would help secure a relatively safe business environment for foreign investment, Jiang Shixue, director of the Center for Latin American Studies at Shanghai University, told the Global Times.

China's cumulative direct investment in Colombia reached $358 million as of the end of 2017, with 134 investment projects, according to MOFCOM.


Newspaper headline: Colombia seeks China trade boost