Winning over partners through trade.

Clearly, the two countries are very contrasting in terms of economic scale. But this FTA is of immense significance and importance to both countries, not only economically and commercially, but also politically and geostrategically.

The free trade agreement (FTA) between China and Nicaragua has just come into effect.

Nicaragua is a country in Central America – a region once considered America's backyard. Relations between the US and Nicaragua have been strained for many years. The same is true for relations between the US and China. Therefore, it's easy to see that the US is unhappy with China and Nicaragua promoting bilateral cooperation.

Recently, a number of Central American countries have decided to shift from diplomatic recognition of Taiwan to recognition of mainland China, demonstrating an intention to abandon diplomatic relations and cooperation with Taipei in order to curry favor with Beijing. China has fully exploited this changing situation to promptly win over Central American countries and bind them to cooperative relationships with Beijing. Promoting trade and investment cooperation is the trump card Beijing has most actively used to win over partners there, separating them from Washington and Taipei. The free trade agreement with Nicaragua is a breakthrough step for China.

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