China-Ecuador relations at 45: Strategic momentum with fruitful cooperation

Editor's note: Hamzah Rifaat Hussain, a special commentator on current affairs for CGTN, is a host for ThinkTech Hawaii, a digital media company in Hawaii. The article reflects the author's opinions and not necessarily the views of CGTN.  

On January 2, as China and Ecuador celebrated the 45th anniversary of their diplomatic ties, Chinese President Xi Jinping spoke about the significance of the relationship in his congratulatory message to Ecuadorian President Daniel Noboa. This, he said, should be taken as a new starting point to elevate the partnership to new heights.

Forty-five years of cooperation with China have brought Ecuador multiple benefits in its development, economic integration and prosperity, showing how win-win cooperation can materialize even in a global landscape characterized by increased polarization and challenges to economic cooperation.  

The free trade pact 

The bilateral ties have been greatly boosted by the free trade agreement (FTA) signed in 2023. It saw the two partners agree to gradually cancel tariffs on 90 percent of the items they trade. The tariffs on about 60 percent were canceled with immediate effect on May 1, 2024, when the agreement came into effect.  

The FTA provides Ecuador with increased access to the Chinese market and its vast consumer base. Ecuador is a major exporter of agrarian products, which constituted 42 percent of the country's exports in 2024. It sells mainly bananas, shrimps, fish, fish oil, cocoa and coffee in the Chinese market, which will benefit significantly from the tariff reductions. It also enables Quito to diversify its global and regional trade partnerships and boost its domestic manufacturing and industrial sectors.  

Given that long-term stability is critical for the Ecuadorian economy, the FTA will make it less vulnerable to fluctuations in consumer demand in a single region or market and provide a critical buffer from instability.  

Besides, the FTA enables Ecuador's developing manufacturing sector to gain better access to Chinese machinery, raw materials and robust technology transfers, which will boost its capacity. Cooperation with China in this sector will lead to reduced production costs, the development of a strong industrial base, an improvement in technological capabilities and an increase in competitiveness. With these advantages, in the long run Ecuador can better navigate economic challenges such as debt management and institute economic reforms.  

China's vision for increasing globalization and cooperation among all countries in the Global South will help integrate Ecuador into the global supply chain. With China's increased role in global manufacturing expanding, Ecuador stands to benefit from increased export opportunities, more domestic job creation and a robust industrial sector which is critical to compete regionally and internationally.  

There are environmental benefits as well. The FTA facilitates cooperation on sustainable practices in industries such as agriculture and mining which gives Quito the chance to learn from China's domestic experiences with sustainable technologies in sectors such as renewable energy, organic farming and building environmental resilience.  

Partner in Belt and Road

Last but not least, Ecuador benefits from the Belt and Road Initiative, under which China is investing in long-term infrastructure projects across 22 Latin American countries. In Ecuador, they include the Coca Codo Sinclair hydroelectric project, the country's biggest hydroppwer project, estimated to have the capacity to meet 75 percent of the domestic power demand; and the Quininde-Las Golondrinas Highway connecting two neighboring provinces in northern Ecuador, Esmeraldas and Imbabura.

The strong bilateral relations have injected new impetus into Ecuador's domestic economic development and prosperity and Ecuador stands to benefit from increased Chinese direct investment in areas such as infrastructure, mining as well as roads, ports and energy projects. These will generate employment in future and stimulate economic growth. The 45th anniversary is a starting point to diversify the cooperation and cover new fields.

(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. Follow @thouse_opinions on X, formerly Twitter, to discover the latest commentaries in the CGTN Opinion Section.)