China-Dominican Republic, a joint home run or a grand slam?

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Editor's note: Shen Shiwei is a research fellow at the Charhar Institute and a former consultant for Chinese companies. The article reflects the author's opinion, and not necessarily the views of CGTN.

Chinese State Councilor and Foreign Minister Wang Yi and Dominican Foreign Minister Miguel Vargas attended the inauguration of the Chinese embassy in the Dominican Republic on Friday.

Speaking of the Dominican Republic, some might know it is located in the island of Hispaniola in the Caribbean Sea. Others could say the country is home to some of the most popular cigars in the world, and where the population is enthusiastic about baseball.

But what do people in the Dominican Republic know about China, with which Santo Domingo established diplomatic ties four months ago?

Perfect time to better know each other

The Chinese embassy unveiled in the Dominican Republic will be a window for mutual understanding between the two countries. As the first Chinese Ambassador in Santo Domingo Zhang Run said, "I come to deliver joint home runs. The two countries now need to improve communication and mutual understanding."

Dominican Republic's presidential adviser Flavio Dario Espinal speaks about China-Dominican Republic relationship during a press conference in Santo Domingo, Dominican Republic, April 30, 2018. /Xinhua Photo

China and the Dominican Republic have forged much closer economic ties long before the diplomatic ties were established in May this year. The Caribbean nation is China's second biggest trading partner in the region and China is the second largest source of imports for the Dominican Republic.

What lies behind the rapid growth in net trade volume is indeed the growing knowledge of each other as business partners. Today, both sides are active in exploring more cooperation.

In recent years, more than two million high-quality Davidoff cigars processed in the Dominican Republic were exported to China annually and were well-received by customers in Beijing and Shanghai.

For a quite long time, Cuba enjoyed much of the fast-growing cigar market in China, where the luxury item is regarded as a symbol of social status. With a growing middle-income class in China pursuing luxury cigars, it is time for the Dominican tobacco and cigar industry to grab more business opportunities and establish a good reputation among Chinese consumers.

People participate in the Chinese Lunar New Year parade in the Chinatown of Santo Domingo, Dominican Republic, February 22, 2015. /VCG Photo

On the other side, the Dominican Republic could serve as a hub for Chinese investment in the Caribbean region via its the free trade zones and dozens of FTA (Free Trade Agreement) frameworks with neighboring economies.

Moreover, those of Chinese descent have lived in the country for more than 150 years, and could act as an intermediary for Chinese exports and manufacturing.

Forty percent of imports from China go through the northern Santiago province, a booming economic hub in the Dominican Republic. The Chinatown in the capital Santo Domingo is also a bridge for both sides to know each other better.

Right position for a joint home run

Even before the two nations forged diplomatic ties, some Chinese companies were already operating businesses in the Caribbean nation. Two of the largest Chinese telecommunications companies Huawei and ZTE had opened offices there.

A Dominican is rolling a cigar at the Belt and Road Brand Expo 2018, Shanghai, China, June 30, 2018. /VCG Photo

Some other Chinese trading companies are also cooperating with their local counterparts to expand their businesses in the Caribbean region via this economic hub.

At present, the power shortage in the Dominican Republic has been an obstacle facing economic and social transformation. According to the World Bank, the revitalization of the Dominican economy depends greatly on a sound reform of the sector and more projects are needed.

China is a good partner with robust technology, equipment, talents, and knowledge to solve these problems.

In May, Concremat Engenharia e Tecnologia S.A., a design consultancy unit of China Communications Construction Co. (CCCC) South America Regional Co., won the bid for the construction supervision work on the Monte Grande dam with a contract value of 19 million US dollars and 42 months of construction period.

Children look at the Chinese Lunar New Year parade in the Chinatown of Santo Domingo, Dominican Republic, February 22, 2015. /VCG Photo

The Monte Grande Dam is a vital project in flood prevention, irrigation, water supply, power generation, and tourism. With about 153 kilometers west of Santo Domingo, the project will alleviate the country's power shortage greatly and share electricity across the island of Hispaniola with Haiti to its west in the future.

Also, Power China has proposed a water resource project in Yuna River with multiple purposes namely flood prevention, storing the water for irrigation and drinking water, and also electricity generation after two years of research with local engineers.

All these projects will inject new impetus into the Dominican economic and social transformation, as well as the China-Dominican Republic relations.

Chinese people may not be so familiar with playing baseball, but we could still have a marvelous home run or perhaps a grand slam with our Dominican friends on the green field.

As Ambassador Zhang Run said, "solid confidence, equal communication, and cooperation for shared benefits will serve as the main goals."

(Cover: Chinese State Councilor and Foreign Minister Wang Yi (R) and Dominican Foreign Minister Miguel Vargas sign a joint communique on the establishment of diplomatic relations in Beijing, China, May 1, 2018. /Xinhua Photo)

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