Complementary economies lift China- Ecuador ties

Editor’s Note:

President Xi Jinping started a two- day State visit to Ecuador on Thursday. Xi is the first Chinese President to visit Ecuador since the two nations established diplomatic ties in 1980.

More than 80 Chinese companies are operating in Ecuador in sectors like infrastructure, automobiles and electronics.

The Consul General of Ecuador in Shanghai, Karina Morales Herrera ( Morales Herrera) talked with Global Times reporter Xie Jun ( GT) on Thursday about the opportunities and prospects for bilateral economic ties.

GT: What do you think about the prospects for ChinaEcuador economic ties?

Morales Herrera: The relationship between Ecuador and China is not only focused on the economic aspect, even if this is an important issue. We have built a strong relationship in several areas in these 36 years of diplomatic relations.

In commercial terms, China is an important partner for our products, but our productive structures are very different.

In other words, while we sell fresh products or oil, China sells us technology, machinery, vehicles. That’s a reason why we have a deficit on the trade balance.

Nowadays, China imports 60 percent of Ecuador’s shrimp production.

At the same time, China imports a lot of oil, minerals such as gold or copper, wood, cocoa and its derivatives, coffee, bananas, fresh and preserved flowers … this means, it is a growing market for the Ecuadorian export sector.

This deficit is offset by the Chinese investment in science and technology, infrastructure, and college scholarships. However, we still have to work hard inside the country in what we have called a change in the productive matrix, which is a key point in the country’s economic transformation.

GT: What opportunities can Ecuador provide for Chinese businesses?

Morales Herrera: We have a very broad portfolio of investments in the strategic sectors ( electricity, basic industries and petrochemicals among others), agro- industry, intermediate industries, tourism, biotechnology, forestry, information and communication technologies, aquaculture, metalmechanics, cocoa and its derivatives, and bioenergy.

Focusing on human mobility is an important benefit. Chinese enterprises in Ecuador have their Chinese executives and their Ecuadorian personnel, the specialized technicians come and go from China without a problem.

The working visa process is easy and the investor visa brings you the opportunity to have an immigrant visa.

Ecuador was the first country in the Americas to eliminate the tourist visa for Chinese citizens.

GT: What can both governments do to promote economic relations?

Morales Herrera: Clear rules for the import of Ecuadorian products to the Chinese market. In that way, the exporters will know from the beginning the process and the required documents and that these will not change without warning.

From the Ecuadorian perspective we need innovative and medium- term projects to strengthen the economic relationship that are close and positive, and we also need to propose joint investment in research and development of certain sectors, industries and topics using our natural advantages.

We still have to promote our country more. Not all Chinese citizens know where Ecuador is located, the spectacular natural environment we have that makes us unique and makes it possible to have products with an incredible quality.

GT: What can the Chinese market do for businesses from Ecuador?

Morales Herrera: Our enterprises are small, mostly family companies, and for them to go international is an arduous process. It will be interesting to have benefits for the small and responsible companies like the ones we have in Ecuador, in order to value more sustainable product chains and bring that benefit to the market in China.