The regime of Daniel Ortega and Rosario Murillo, through the General Directorate of State Procurement at the Ministry of Finance and Public Credit (MHCP), has ordered state institutions to “prioritize” purchasing machinery, equipment, and supplies from suppliers whose country of origin is China, one of the regime’s allied nations.
In administrative circular DGCE-SP-12-2024, the General Directorate of Procurement emphasizes that “as of January 1, 2024, the Free Trade Agreement between the Government of the People’s Republic of China and the Government of the Republic of Nicaragua came into effect, one of the objectives of which is to promote technological innovation, as well as the transfer and dissemination of technology between the parties.”
The circular, signed by Nasser Silwany González, head of the General Directorate of State Procurement at the MHCP, also states that China is recognized as a “global leader in large-scale production, allowing it to offer equipment, machinery, and supplies at much more competitive prices compared to other regions of the world.”
Avoiding and Reducing Risks from Sanctions and Coercive Measures
It further emphasizes that diversifying to Chinese suppliers “represents a key strategy to avoid and reduce risks associated with dependence on specific regional markets, sudden and unjustified changes in trade policies, and unlawful aggressions through sanctions and unilateral coercive measures against the State of Nicaragua.”
For all these reasons, it ordered all entities and agencies in the public sector to “prioritize the acquisition of equipment, machinery, and supplies from suppliers whose country of origin is the People’s Republic of China.”
It also notes that the administrative circular is “mandatory and effective immediately for the procurement processes initiated by all entities and agencies in the public sector, starting from this date, regardless of its publication on the Single Procurement Portal or any other means of dissemination.”
Second Circular
This is not the first circular of its kind. On November 15, a previous circular was sent to all public institutions, instructing them to prioritize purchasing information and communication technology goods or services from suppliers whose country of origin is China. This, according to experts, violates internal legislation, the Central America-Dominican Republic-United States Free Trade Agreement (DR-CAFTA), and other international trade agreements that align with the principles of the World Trade Organization (WTO).
This week, dictator Ortega surprised attendees at the XVII China-Latin America and Caribbean Business Summit by presenting a new route for the Nicaragua Interoceanic Canal project and showing a map of the route. This route begins at the Bluefields port on the country’s Caribbean coast and moves towards the Pacific Ocean, noting that the new path bypasses Lake Cocibolca and instead passes through the middle of Lake Xolotlán.
In addition, Chinese-owned businesses in the country have doubled, ranging from warehouses and stores to workshops.