Honduras’ decision to straighten relations with China was driven by "pragmatism" as Tegucigalpa wanted to increase trade and attract investments from the world's second largest economy to upgrade its infrastructure network as well as create jobs for the Honduran people, roughly three-fourths of whom were living in poverty.
As the Honduran President Xiomara Castro arrived in China’s financial hub, Shanghai, for a 6-day trip last June, her visit was meant to fillip the Beijing-Tegucigalpa relationship by breaking new ground across the areas of economy, trade and technology and deliver benefits to the her people.
Castro’s mission succeeded once the Chinese President Xi Jinping vowed to begin talks with Honduras on a free trade agreement (FTA) “as soon as possible,” promote Honduran products to enter the Chinese market and encourage the Chinese enterprises to develop the Honduran energy, infrastructure and telecommunications sectors. The two countries also signed several agreements including on Belt and Road construction, trade, agriculture and technology.
Signing of the memorandum of understanding on the Belt and Road Initiative (BRI) in just less than three months of the formation of the diplomatic ties between China and Honduras was a notable development, reflecting Tegucigalpa’s profound interest in the global connectivity project over its potential to improve the Honduran connectivity with region and rest of the world.
Even before any formal agreement on BRI, Chinese companies had invested and implemented some major energy projects – such as Patuca III Hydropower Station, the first large-scale hydropower project built in the country over three decades, and the El Arenal Hydropower Station – in Honduras, helping it strengthen its energy infrastructure and alleviate the power outages across the country. Tegucigalpa’s participation in the BRI will augment its capacity to cope with these and other challenges, obstructing the Central American nation's development.
The Honduran officials seek to learn from China’s development model and aspire to generate half a million jobs in the next four years. A sharp surge in bilateral trade (17.9%) in the first 10 months of 2023 indicate the establishment of the China-Honduras relationship has made a powerful impact on the Honduran economy with Beijing’s imports from Tegucigalpa almost doubling year-on-year.
Since talks began on the FTA in July between China and Honduras, four rounds of negotiations have taken place. The rapid progress and an agreement on early harvest arrangement underscore that the two countries are committed to expand bilateral economic and trade cooperation, enhance the quality and level of bilateral trade and deepen collaboration in investment, energy, telecommunications and infrastructure.
"The (FTA) will be crucial for the economic development of Honduras. We have already participated in trade fairs in China, promoting our emblematic products such as tobacco, coffee and chocolate," said recently the Secretary of State in the Office of the Presidency of Honduras, Rodolfo Pastor. Cooperation in education and technology is further reinforcing this solid partnership.
In the “Two Sessions” of the 14th National People's Congress, China's national legislature, Xi emphasized developing “new quality productive forces (NQPFs).” This revolutionary concept focuses on innovative techniques and technology breakthroughs to spur high-quality industrial development and productivity and fostering new growth drivers in the fields of bio manufacturing, commercial spaceflight and low-altitude economy without abandoning or neglecting traditional industries.
China’s focus on NQPFs, advanced productivity and sci-tech cooperation presents opportunities for the country itself and the world, especially the Global South countries that seeks to modernize their economies, given it will inject a strong momentum into the international economic recovery and growth while making sure the expansion is clean and green.
Developing and emerging economies in South and Southeast Asia, Africa and Latin America can greatly benefit from the NQPFs for this new paradigm involves technological advancements, efficient and innovative allocation of resources and intensive industrial transformation and upgradation as well as aims to advance traditional industries by making them more sophisticated, intelligent and environmentally friendly.
China’s clean energy sector is turning into an engine of its economic growth, accounting for almost 40% of the country’s economic expansion in 2o23. The Chinese investments in renewable energy last year, estimated at $890 billion, alone were at par with the global investments in fossil fuel supply as strong growth of the “new three” industries – solar cells, electrical vehicles and batteries – steer the Chinese economy toward high-quality, green development.
Over the years, Beijing’s science and technology research base and innovation capacity has grown substantially, unsettling the world’s tech overlords. For countries like Honduras, China is not only playing a central role in the economic and technological development of the developing countries, it is also willing to share its tech development by constructing labs, providing scholarships to aspiring scientists and deepening research collaboration with the Global South particularly within the BRI framework, urging them to strengthen ties with emerging global tech leader.