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Taiwan says China dangled $3 billion to grab ally Dominican Republic
https://www.diariolibre.com/noticia...ciones-con-china-y-rompe-con-taiwan-JD9764795
interesting. it feels like china is establishing new manufacturing grounds, close to USA. panama, costa rica, now DR. shedding "made in china" labels? they may be in for a big surprise...
i know a guy who worked in manufacturing in china and later on in DR. asked what is a difference in productivity between the chinese and dominicans he responded with: "three". "three times less?" "no, 3% of chinese productivity". ha ha ha.
interesting. it feels like china is establishing new manufacturing grounds, close to USA. panama, costa rica, now DR. shedding "made in china" labels? they may be in for a big surprise...
i know a guy who worked in manufacturing in china and later on in DR. asked what is a difference in productivity between the chinese and dominicans he responded with: "three". "three times less?" "no, 3% of chinese productivity". ha ha ha.
Better than Odebrecht.
That included $400 million for a new freeway, $1.6 billion for infrastructure projects and $300 million for a new natural gas power plant.
Could this be the planned new short route freeway from Santaigo to Puerto Plata mentioned a couple of months ago?......I hope so.
You wouldn't get that from Taiwan.
That included $400 million for a new freeway, $1.6 billion for infrastructure projects and $300 million for a new natural gas power plant.
Could this be the planned new short route freeway from Santaigo to Puerto Plata mentioned a couple of months ago?......I hope so.
You wouldn't get that from Taiwan.
Could be. But I hope that the DR gubmint understands that the Chinese use their own to build and construct. They use very few locals.
WARNING - China doesn't do anything without a sharp hook - Ask the poor tuna (Dominicans) how that hook tastes in a few years.
But anyway there is an expression in English: When ask how the sh*t-sandwich was: Answer - "Well the bread was good"
Normally the Chinese deal with the money which comes from one of their major banks at very favourable terms and that money is not handled by the receiving government. No fancy financial arrangements which can be exploited with laundering of money. They will often use one of their major contractors to oversee the project with labour as needed (for ANU airport there used some but far from all local labour despite tough labour laws there), and of course where ever, material sourcing from China.
Any wedge would have been negotiated by now in the overall deal.
DR is borrowing huge sums already for Punta Catalina and more using commercial loans. Anything has to be better than the Odebrecht scam.
1) The Dominican government needed an impactful positive story to detract from crime and corruption stories.
2) With Odebrecht-Brazil money dried up, big pressures to end increasing sovereign borrowing, and limits to taxing in the Dominican Republic, the government needed a source of big money.
3) The Dominican Republic can use Chinese help in increasing light manufacturing joint ventures with Haiti. Haiti has all the incentives for exporting to the US market. The fact that Fernando Capellan of Grupo M was one of two businessmen to comment on the decision for the Presidency website means manufacturing stands to be a big winner of the deal.
What is good for Haiti is good news for the DR because it reduces the immigration of indigent Haitians and increases their purchasing power for Dominican goods.
2) With Odebrecht-Brazil money dried up, big pressures to end increasing sovereign borrowing, and limits to taxing in the Dominican Republic, the government needed a source of big money.
3) The Dominican Republic can use Chinese help in increasing light manufacturing joint ventures with Haiti. Haiti has all the incentives for exporting to the US market. The fact that Fernando Capellan of Grupo M was one of two businessmen to comment on the decision for the Presidency website means manufacturing stands to be a big winner of the deal.
What is good for Haiti is good news for the DR because it reduces the immigration of indigent Haitians and increases their purchasing power for Dominican goods.
Hundreds of million of Chinese are doing tourism outside of China's borders. Some estimates claim upwards of 500 million Chinese will be touring the world in the next few years. The DR only needs a small drop of that to reach its 10 million tourist goal for 2020.
See the videos here: http://dr1.com/forums/showthread.php/171613-The-DR-Breaks-Ties-with-Taiwan-Unites-with-China
See the videos here: http://dr1.com/forums/showthread.php/171613-The-DR-Breaks-Ties-with-Taiwan-Unites-with-China
For certain Taiwan would not have provided this. Good for them to follow the money. How much will this hurt later?
As for the new road going potentially from the North Coast to Santiago, that would be great if that is indeed what new highway means. We currently have the 100 year plan going on with the current so called road improvement on the existing Puerto Plata to Santiago road, as in maybe in 100 years it will be done.
All that said, what about when the mainland Chinese money is all gone in a year or two, that the DR then re-establishes ties with Taiwan?
Last time i was in immigration in SD there was no shortage of Chinese, in fact 50% were Chinese
I hope we don't see a Chinese buffet restaurant on every corner
The DR gubmint is like any chica or sanky on the street corner. They go to the highest bidder and when cash runs out, they come back begging to whomever they rejected prior.
It's a sound policy IMHO.