China is now Ecuador’s biggest trading partner and creditor after the countries increased investment, trade ties, infrastructure and energy projects. CCTV’s Dan Collyns filed this report.
Highlights:
- China extended a $7.5 billion credit line to Ecuador.
- Ecuador began borrowing from China in 2008 when the South American country defaulted on $3.2 billion of foreign debt. In return China claimed the lion’s share of Ecuador’s oil shipments under long-term contracts which provide up-front Chinese funding.
- Chinese investment is also moving into sectors from hydroelectric energy generation to telecommunications.