China and Panama are celebrating this weekend what officials are calling a new chapter in relations. Just three months after the two countries established political relations, the Chinese Embassy will be officially opened on Sunday. Foreign Minister Wang Yi is there for the occasion. CGTN's Paulo Cabral reports from Panama City.

 

This is a historic meeting. It's the first visit of a Chinese foreign minister since establishment of diplomatic relations between the two countries. Wang Yi was welcomed by Panamanian President Juan Carlos Varela to the presidential palace for the inauguration of the Chinese embassy. Just in the last three months - since the governments decided to establish ties - there's already been a boost in relations. In the run-up to the official ceremony - scheduled for Sunday - China and Panama have signed commercial agreements estimated to generate about 38 million dollars in trade and investment.

 

AUGUSTO AROSEMENA PANAMANIAN TRADE AND INDUSTRY MINISTER "Panama is a gateway to the Americas, and we believe that many Chinese companies will be able to use Panama's position, logistical capability and infrastructure to use it as a hub to get products to the region, the same way the region will use Panama to get products to China. This is very important for the region and a historic day for Panama."

 

This Chinese diplomat hopes Panamas' decision may help clear the way for other countries in this region to also establish ties with China.

 

WANG WEIHUA CHARGE D'AFFAIRES, EMBASSY OF CHINA IN PANAMA "Panama's decision sets an example and sends a very clear message to other countries in Central America and the Caribbean, that little by little, the One-China Principle is being recognized by the whole international community."

 

PAULO CABRAL PANAMA CITY Diplomatic relations between China and Panama could only be established after the Panamanians severed their ties to the Taiwan region in June. In practice, however, the two countries have had significant commercial relations for decades and hopes are the newly-established political relationship will help boost trade and cooperation.

 

Chinese companies are already involved in dozens of infrastructure projects in Panama - like the 700 million dollar investment in the construction of a new deepwater container port in Isla Margarita, near the entrance of the recently inaugurated expansion of the Panama Canal. And the development Cidade Esperanza - City of Hope - on the country's Pacific Coast. It's a large development including more than two-thousand housing units, a university and government buildings. Panama and China are building a relationship that both sides hope will be very fruitful for years to come. Paulo Cabral, CGTN, Panama City.