Many unknowns come with the implementation of this year’s diplomatic relations between the People’s Republic of China and the Dominican Republic. One thing is for sure, the country expects that these relations will help the steady economic growth that has been generated over recent years in the Dominican Republic. The opening of embassies in both countries kickstarts the beginning of diplomatic relations, meaning both the public and private sectors will strengthen commercial ties.
The Dominican Republic, in constant growth, is looking to become the next Caribbean Convention Center. Surprised constantly by its increasing figures, the tourism sector has added other developmental activities necessary for the expansion of infrastructure. The Dominican government is not entirely prepared to take on this challenge of development alone, enter the government of the People’s Republic of China and its businessmen. Thanks to its numerous resources positioned around the world, it is estimated that in the next ten years, China will invest about US $ 250,000 million in LATAM and the Caribbean. President Xi Jinping promotes tours of the region to strengthen relations and agreements, and the state concessions are obviously part of the central axis of the negotiations for the which the Chinese are betting. In many of these countries, including the Dominican Republic, it is advisable to access technologies and resources that are not possessed with the necessary transfer of know-how, in fact it is stipulated that US $ 30,000 million be invested in the Dominican Republic, because remember, much of this investment is accompanied in products and services, not necessarily in cash.
An essential part of these relations is that the Chinese government has the Dominican Republic as a tourist destination with more than 130 million people with high purchasing power and with a tendency to increase in less than a decade to 500 million. Any nation that is prepared to satisfy this public being different culturally will face a challenge, to overcome it, surely the benefits will be multiple.
The facilities offered in the Dominican Republic to foreign investors with their free zones and free trade agreements, as an example with the United States of America, in theory, should be one more reason for China to target the manufacturing sector, as we know it is the biggest in the world. Although the Asian giant could install production and distribution centers for LATAM and the Caribbean, if you want production to be self-sufficient, imagine interests in the tobacco industry, where the Dominican Republic has merits, China could satisfy the immense demand it has for this sector.
The near future of the People’s Republic of China will have an absolute impact on the world’s economy, and it will try to position itself in more markets. The Asian commitment is not only focused on manufacturing, but research and development supported by the engineering processes is also a new strength of the great red flag, and we must have them as partners and allies.