Thursday 19 Jul 2018 | 00:52 | SYDNEY
Thursday 19 Jul 2018 | 00:52 | SYDNEY

China-Costa Rica: Still more chequebook diplomacy

By

Malcolm Cook

12 September 2008 15:19

Over the past few months, The Interpreter and the Institute as a whole has debated Chinese state-controlled investments overseas and the competition between China and Taiwan for diplomatic recognition (see also Fergus' latest, below).

A recent Financial Times article about the institution that holds China’s massive and growing foreign reserves, the State Administration of Foreign Exchange (a reassuring acronym), connects these themes nicely. SAFE is using a smidgen of its war chest to successfully encourage Costa Rica to shift its ‘One China’ recognition from the Republic of China (Taiwan) to the People’s Republic of China (China). This does look like an example of China using state-controlled capital to achieve diplomatic, not commercial, ends.