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Teddy Ng

Reuters

The US has expressed concern over a lack of information surrounding a planned US$50 billion (HK$388 billion) Chinese-led canal project in Nicaragua said to rival the Panama Canal.
The remarks by the US embassy in Nicaragua come as China hosts leaders and ministers from about 30 Latin American and Caribbean states. Several deals on trade and investment are expected to be signed, including extensions to the timeline of Chinese loans to Ecuador.
Work started last month on the 278km canal, which will open a route between the Pacific Ocean and the Caribbean Sea. Its Hong Kong-based developer, HK Nicaragua Canal Development Investment, said it would be operational by 2020.

The canal is poised to give China a major foothold in Central America, a region long dominated by the United States.
In a statement released this week, the US mission in Managua said all relevant documents relating to the project should be made public and the voices of all stakeholders heard.
"The embassy is worried by the lack of information and transparency that has existed, and continues to exist, over many of the important aspects of this project," it said.
The embassy called for the disclosure of environmental impact studies, tenders and other project details. Protesters in Nicaragua claim the project will hurt the environment.
The developer, which is controlled by mainland businessman Wang Jing, did not comment on the US statement.

Wang has said the Chinese government was not behind the project, but his reluctance to reveal his financiers has led many to speculate that he enjoyed Beijing's tacit backing.
China's foreign ministry also denied the government was involved in the project. "Chinese companies have gone to other countries to cooperate on large projects," spokesman Hong Lei told a regular press briefing.
"We have asked firms to follow the laws of other nations and launch projects based on market principles, including protecting the local environment."
In Beijing, the government is hosting a two-day forum on cooperation with Latin America that begins today. China and Ecuador signed nine agreements after talks between President Xi Jinping and his Ecuadorean counterpart, Rafael Correa.
In the talks, Xi called on both nations to step up coordination through international organisations to protect the interests of developing nations, according to the ministry.
Xi also called on China and Venezuela to boost cooperation on oil exploration and infrastructure when he met Venezuelan President Nicolas Maduro, who is seeking to bolster the nation's battered economy.
Analysts said more Chinese companies were expected to invest in Latin American and Caribbean states, but Beijing should protect firms from legal and political risks. Jin Canrong, an international affairs specialist at Renmin University in Beijing, said the US was concerned about the canal because it would affect American influence in the region.
"The statement by the US embassy may make it more difficult for the company to solicit capital for the canal," he said.
Long Baijin, the mainland general manager at Scottish Development International, a government agency, said small, private firms were more vulnerable to disputes.
The government should provide more consular help to the companies, enhancing their awareness of the legal and political environment of overseas nations, he said.


US embassy in Nicaragua voices fears over Chinese-led US$50b canal project

Demonstrators burn tyres in Rivas last month to protest against the Nicaragua Canal. Photo: AFP

Chinese businessman Wang Jing, pictured at the start of work last month, says the Chinese government is not behind the US$50 billion canal project in Nicaragua. Photo: AFP

Work started late last month on the Chinese-led Grand Canal of Nicaragua, which should be operational by 2020. Graphic: The Washington Post

Interview: HKND chairman Wang Jing aims to keep politics out of controversial canal

Wang Jing. Photo: SCMP Pictures

Wang Jing, Chinese tycoon behind Nicaragua Canal, now wants to build satellite communication network 

Wang Jing said that his company, Xinwei Telecom Enterprise Group, launched a low-earth orbit satellite last month in Inner Mongolia in a joint venture with Tsinghua University. Photo: Reuters

Wang Jing said that his company, Xinwei Telecom Enterprise Group, launched a low-earth orbit satellite last month in Inner Mongolia in a joint venture with Tsinghua University.

News

China

World

Embassy calls for greater transparency over project that gives China foothold in region


The US has expressed concern over a lack of information surrounding a planned US$50 billion (HK$388 billion) Chinese-led canal project in Nicaragua said to rival the Panama Canal.


Update | US embassy in Nicaragua voices fears over Chinese-led US$50b canal project

Embassy calls for greater transparency over project that gives China foothold in region