Cuban trade with China falls by a third

Cuban trade with China falls by a third
Havana May 31, 2010. REUTERS/Desmond Boylan

Further evidence of how much island is slashing spending amid crippling
economic woes

Havana — The Associated Press Published on Tuesday, Jun. 01, 2010 2:07PM
EDT Last updated on Tuesday, Jun. 01, 2010 2:20PM EDT

Cuba's trade with China fell by nearly a third in 2009 to about
$1.5-billion (U.S.), further evidence of just how much the island is
slashing spending amid crippling economic woes.

China's ambassador to Cuba, Chen Feng, told Havana's state-run weekly
magazine Opciones that his country's economic ties to Cuba were down
31.5 per cent compared to the previous year.

But in the remarks published Monday, he also announced plans to
collaborate with Cuba on a new luxury hotel on Havana's western
outskirts that will cost about $117-million and be built later this year.

It was not clear if the 2009 trade figure included $78-million in
credits, donations and hurricane relief Chinese President Hu Jintao
promised during a November 2008 visit to the island.

The drop in 2009 was consistent with sharp tumbles in Cuban imports from
other major trading partners such as Venezuela and Spain, as well as
food and farm products it is allowed to receive from the United States
despite Washington's 48-year-old trade embargo.

Cuba's economy is struggling to overcome a triple-whammy of bad news:
Three major hurricanes did more than $10-billion in damage in 2008, the
global economic crisis dampened tourism and a drop in commodities prices
hurt nickel sales for much of 2009.

China is Cuba's second-largest trading partner behind Venezuela, where
socialist President Hugo Chavez helps keep the Cuban economy afloat by
providing more than 100,000 barrels of oil per day in exchange for
island doctors, who provide free medical care in his country, and other
social services.

The economic ties to Beijing have brought many tangible benefits to
Cuba, including about 4,000 new Yutong buses that have replaced
smoke-belching, Soviet-era buses.

Chen said Cuba will continue importing Chinese goods, primarily for its
electrical industry, as well as communications, transportation and
agriculture.

Last year, Cuba's government was an investor in the construction of the
new 868-room Gran Melia Shanghai in that Chinese city.

The money for the new 650-room resort at the Hemingway Marina on
Havana's outskirts will be financed 49 per cent by Cuba's government and
51 per cent by China, the ambassador said.

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