Walking in some parts of Guayaquil, especially downtown, can be compared to traveling to another continent because of the symbols shown in the advertisements. Clothing stores, grocery stores, hardware stores, restaurants, spa, logistics companies and courier These are some of the companies that are increasingly displaying their names written in Chinese, and some even offer listings of their services in that language.

There are also ads in Chinese for rent and sale of offices and apartments in central Guayaquil. The streets of Sucre, Pichincha, Chimborazo, Chile and Colón are some areas where you can find more advertisements with Chinese typography.

Belén has been working in the Guayaquil Bay sector for three years, mainly in shops and importers owned by Chinese entrepreneurs. He remembers that it was very difficult to adapt when he started working in these facilities, and it was even more difficult to get used to conversations and negotiations in Chinese.

Many ads for renting or selling apartments are also written in Chinese. Photo: Peter Tavra Franco

“It took me two years to understand and speak a few words in Chinese, say hello, ask about prices or some goods and get paid (she says with a laugh), but the Chinese learn Spanish much faster, in weeks,” admits the saleswoman.

For Gustavo Cáceres, president of the Ecuadorian-Chinese Chamber of Commerce, it is normal that the presence of Chinese businessmen in Ecuador is increasingly visible, especially in capital cities such as Quito and Guayaquil. He assures that this trend started eight years ago, in 2015, when Ecuador began political, diplomatic and commercial work to get closer to China, which generated greater commercial and cultural exchanges between both nations.

“The milestones that marked this relationship come from 2015 when President Rafael Correa visited China and then in 2016 when Xi Jinping (President of China) returned that visit to Ecuador, in 2018 Lenín Moreno visited Beijing again and in 2022 the visit of President Guillermo Lassa also returned to Beijing during the Winter Olympics,” Cáceres recalls.

He assures that this good relationship definitely affects Chinese businessmen who want to emigrate and see Ecuador as a good destination for their investments and open industries.

China is the second largest investor in Ecuador

According to the latest data on foreign direct investment (FDI) published by the Ministry of Production, Foreign Trade, Investment and Fisheries, Ecuador attracted 107 million dollars in the first half of 2023, with China taking the second place of origin with 19.8% of these investments, only behind the United States which recorded 20.9%.

Followed by Chile (13.1%), Spain (8.9%), Colombia (7.3%), Italy (6.8%), England (5.8%), Peru (4.8%), Switzerland (3%), Argentina (2.1%) ), France (1.7%), Brazil (1.5%), Uruguay (1.4%), Mexico (0.9%) and Sweden (0, 8%).

Chinese entrepreneurs invest in new businesses that also reveal their culture. Photo: Peter Tavra Franco

From 2012 to 2022, China was the fourth country of origin of foreign direct investment in Ecuador with $819 million.

These are the countries with the most foreign direct investment in Ecuador from 2012 to 2022:

Cáceres also points to trade between Ecuador and China, which has gained momentum in recent years. “In 2023, it is expected that there will be a positive trade balance for the first time, despite the fact that at the moment there is no trade agreement in force, where the most exports and imports are China,” the head of the chamber claims.

In 2022, Ecuador exported $5,706 million worth of products to China and imported $6,165 million, resulting in a negative balance for Ecuador of $460 million. Meanwhile, from January to September 2023, Ecuador exported $4.594 million and imported $4.452 million, resulting in a positive balance of $142 million.

In this way, China is the main destination of Ecuadorian non-oil exports with a growth of 3%, compared to the same period in 2022, and is also the main origin of the country’s imports with a decrease of 3.6% from January to last September.

“There are many criteria that show that imports have decreased due to the problem of political instability, insecurity, due to the economic difficulties that are being experienced… at this moment, the Chinese entrepreneur is very cautious,” analyzed the leader.

The free trade agreement with China will further boost trade

In any case, he indicated that this trade exchange will grow even more when the trade agreement signed by Ecuador and China last May enters into force and has already been approved by the Constitutional Court and must be approved by the National Assembly.

“This influence that business with China has will definitely grow in both directions. With the trade agreement, we will not only allow new Ecuadorian exports that currently do not reach China to have the opportunity to serve this large market of more than 1.4 billion people,” the union leader noted. He added that more than 77% of imports from China refer to capital goods, technological equipment, raw materials and inputs used for production.

Cáceres also pointed out that there is also the interest of Ecuadorian businessmen in doing more and more business with their Chinese colleagues, which is why the Chamber organized the China Expo in Guayaquil last week, and this Wednesday, November 29, it will officially open the China Expo at the Centro de Metropolitana Conventions in Quito .