According to Russian media, China and the Latin American country Nicaragua recently announced the launch of free trade agreement negotiations.
Nicaragua is a unique country among Latin American countries that have established diplomatic relations with mainland China. China and Nicaragua first established diplomatic relations in 1985, but within a few years, the Nicaraguan government was beguiled by the Taiwanese government and "restored diplomatic relations" with it.
Subsequently, the Chinese government announced the suspension of diplomatic relations with Nicaragua, and then until 2021. Nicaragua finally saw the situation clearly, announced that it would "break off diplomatic relations" with the Taiwan authorities, and soon resumed diplomatic relations with mainland China.
Now, China and Nigeria have begun free trade negotiations, which can be regarded as a sign of normalization of relations between the two governments.
According to Russian media reports, the main content of the trade negotiations between China and Nigeria is the agreement on the import and export of agricultural products. Nicaragua can increase its exports to China by about US$100 million in these tax-free agreements.
At the same time, this agreement also provides the possibility for Chinese companies to invest in Nicaragua.
The above are all routine operations, there is nothing to say, but the Russian media also pointed out that with the establishment of diplomatic relations between China and Nigeria, Chinese companies may restart the construction of the Nicaragua Canal and rely on this canal to compete with the United States at the global and regional levels.
The Nicaragua Canal is a very magical concept. As early as the beginning of the last century, the United States, Britain, France and other Western powers had fought over this canal. In the end, no one could do anything to the other and could only sign an agreement.
Later, the Panama Canal was successfully constructed, and the trade route between the Atlantic and Pacific Oceans was opened. The importance of the Nicaragua Canal suddenly decreased, so this canal has not been built until now.
However, the Panama Canal is further south, and due to its own geographical conditions, the tonnage of cargo ships that can pass is limited, because the deepest water depth of the Panama Canal is only about 55 meters, and the largest ship that can pass through the canal is only 150,000 tons. oil tankers and cargo ships.
Once the Nicaragua Canal is completed, it will be able to pass 400,000-ton cargo ships, and the deepest point of the canal can reach more than 100 meters. If this canal is built and controlled by a Chinese company, it will definitely facilitate China-Europe trade as well as China-Latin America trade. condition.
Russian media said that Chinese companies may restart investment in the construction of the Nicaragua Canal to compete with the United States. In principle, it is feasible.
But the matter is far from that simple. Since 1900, the Nicaragua Canal has been favored by Britain and the United States at the same time, wanting to build this canal. Later, France, a European power, was added.
In the competition between the three countries, no one can win the construction and operation rights of the Nicaragua Canal. There are many complicated factors, but the most important one is that this place is too close to the United States.
At the beginning of the last century, the United States' comprehensive strength could not compare with that of the United Kingdom. Therefore, it was actually on the defensive when it came to the Nicaragua Canal project. The United Kingdom originally wanted to control this canal, but it was blocked because of the presence of the United States. After all, it regards the entire Latin America region as its "backyard."
Later, the United States became stronger and had the ability to control the canal. However, the Panama Canal was opened again, so the Nicaragua Canal was delayed again.
In 2016, a Chinese company said it would restart the canal in Nicaragua, but it was later proven that this was just a scam, because the construction of the Nicaragua Canal would require at least US$50 billion in investment.
50 billion is not a small amount, and the key issue is that after the actual investment, it is difficult to say when the benefits this canal can bring will smooth out the costs.
More importantly, once the Nicaragua Canal is completed, it will have a crushing advantage over the U.S.-controlled Panama Canal, and the trade line between the Atlantic and Pacific Oceans will inevitably shift to the Nicaragua Canal.
From an economic point of view, this is a good thing. After all, more ships pass by, and more money can be made to make up for the cost. But politically and economically, this is not a good thing, especially for Chinese companies.
You must know that China has invested a lot in Latin America over the years, including energy projects, mining projects, etc., but these projects are generally affected by the local environment.
The United States manipulates the politics of these countries through cultural invasion and peaceful evolution. We have invested in it, but from time to time we are undermined by their labor unions and civil organizations, and their cooperation is suspended and production is restricted.
For example, China's largest copper mine and copper mine project in Chile often stop work and strikes because local people go on strike and demand higher wages. In fact, the salaries paid to them by Chinese companies are already far higher than the local average.
It is a good thing to invest abroad to expand China's influence and increase China's strength, but it must also be based on being able to protect these investments. If the Nicaragua Canal was really built, it would have the same strategic position as the Suez Canal and the Panama Canal, and it would be right next to the United States. How could the United States watch it be controlled by China?
Therefore, there is still a long way to go before the Nicaragua Canal is built. Nowadays, the cooperation between China and Nigeria is good to help Nicaragua’s agricultural products export. It is impossible to rush into the canal project for the so-called Nicaragua. Tens of billions of dollars, and then bear the risk that it may be destroyed or even robbed by the United States at any time.
