The Chinese trade team, headed by Vice Minister of Commerce Ma Xiuhong left for Costa Rica on August 18 for a 9-day visit to the Central American country. During their stay, the Chinese team is holding one-to-one talks with members of the Costa Rican government, including President Oscar Arias Sanchez, and hosting a China-Costa Rica Trade Cooperation Forum.

The trade talks have come a matter of weeks after Costa Rica officially commenced relations with China on June 1, somewhat controversially turning its back on Taiwan in the process. Generally, nations recognising Taiwan are frowned upon by Beijing, as a result of the ongoing hostility between the two countries which has persisted since the Communists seized power in China six decades ago, and countries tend to recognise one but not the other. This has led to China and Taiwan competing for the support of developing nations through generous aid, trade and investment packages.

For Costa Rica, there are sound economic justifications for the country to align itself with Beijing. China was Costa Rica's second largest export market last year, with $1.06 billion worth of Costa Rican products exported there. During the first half of this year, Costa Rica shipped $628.3 million of goods to China, representing an increase of $200 million over the same period last year. According to China's General Administration of Customs, overall trade between China and Costa Rica was $2.1bn in 2006, up 87% from 2005. Volume rose 65% in the first half of this year.

During the visit by the Chinese delegation, it emerged that Costa Rica will open up a foreign trade office in China. Initially, this office will be focusing its efforts on Beijing, Shanghai and Wan Zhong, according to wire service ACAN-EFE.

It was also announced by the office of President Sanchez following a meeting between the Costa Rican leader and the Chinese delegation that the former may visit China at the end of October, at the invitation of Chinese President Hu Jintao. It was additionally confirmed that Costa Rican officials will study the possibility of a free trade agreement with China next year.