Gareth Manning, Gleaner Writer

XIAMEN, China:

Caribbean economies are expected to swell from billions in foreign direct investment from China in the next three years, as the world's fourth largest economy makes good on its commitment to improve economic ties with the region.

The investment comes in the midst of a rapidly growing trading relationship between China and Caribbean states over the last five years that has seen growth of 32.7 per cent annually. Exports between the two countries stood at US$4.4 billion last year and, up to June this year, trade had exceeded US$2 billion - an increase of 22 per cent over the same period last year. These trade figures are expected to rise to $5 billion by year-end.

Addressing Caribbean delegates at the second China-Caribbean Trade and Economic Cooperation Forum in Xiamen on the weekend, Vice Premier Wu Yi announced that her government has provided 4 billion yuan (J$39.4 billion) in preferential loans to Chinese companies to invest and promote cooperation in Caribbean countries. Some 20 million yuan (J$197 million) of that sum will be invested in Jamaica.

Among the prime areas of focus, Vice Premier Wu said, will be the construction industry, resource development, industrial, agricultural and forestry production, tourism and telecommunications. Tourism is already set to get its share of the 1.3 billion-person Chinese market as China granted several Caribbean states approved tourist destinations.

China has also committed itself to improving trade conditions with the region and strengthening its capacity. Two thousand Caribbean government officials and technical professionals will be trained over the three-year period, while scholarships will be made available for Caribbean nationals to study in China. Some 600 persons have already been trained.

The region should also see an increase in teachers and medical personnel from China as the country exports more of these professionals to strengthen the region's health care and educational systems.

"China believes that every country, large or small, strong or weak, rich or poor, is an equal member in the international society, thus should be treated with respect and equality," said Wu.

Responding to the Vice Premier's announcement, Barbados Deputy Prime Minister Mia Motley hailed China for its continued support of the region, noting that its assistance was welcomed as struggling Caribbean states would be forced to open themselves for free trade by 2008.

gareth.manning@gleanerjm.com