One year ago, Honduras made a significant diplomatic move by establishing formal relations with China, recognizing it as the \"sole legal government representing the whole of China,\" including the Taiwan region. This decision led to the severing of unofficial ties with Taiwan authorities, who continue to receive support from the U.S.
Despite Honduras maintaining strong security relationships with the U.S. and exporting over $4.81 billion worth of goods there in 2021, the country saw only about 1 percent of its exports going to China during the same period. The shift to recognize Beijing is seen as a pragmatic strategy to \"expand the pie\" and tap into the growing Chinese market.
Since the establishment of diplomatic relations, trade between China and Honduras has flourished. In the first four months of 2023, bilateral trade reached $540 million, with Honduran imports from China soaring by 229.5 percent. Both nations are now working towards a Free Trade Agreement, aiming to further boost economic collaboration.
This enhanced trade relationship is not just about numbers. For Honduras, improving the economy through Chinese investment could address longstanding issues of poverty and inequality, which have driven many to migrate to the U.S. By fostering economic growth, Honduras hopes to create more opportunities for its residents, reducing the need for migration.
The partnership between Honduras and China highlights a broader trend of developing countries seeking pragmatic alliances to drive economic development and stability. As China continues to play an increasingly pivotal role in global trade, countries like Honduras are leveraging these relationships to build a more prosperous future.
Reference(s):
No more 'banana republics': Honduras, China united by a common destiny
cgtn.com
