Mary O’Grady thinks so:
China Wants to Dig the Nicaragua Canal
The economics don’t add up, but the project serves both governments’ larger interests.
The Chinese government denies it is behind the concession held by HKND. But with more than $3.5 trillion in foreign reserves, it’s the logical candidate to foot the bill. Beijing has been flexing its geopolitical muscles in the Americas for more than a decade, and it hasn’t hesitated to work closely with corrupt dictatorships like those in Ecuador and Venezuela. According to HKND, the Nicaragua canal will require a labor force of 50,000. Many can be expected to be Chinese. The company says the China Railway Construction Corporation is conducting feasibility studies of the project.The HKND concession includes the rights to develop “two ports, a free-trade zone, holiday resorts and an international airport.” Canal or no canal, each is a business opportunity not only for China but also for Mr. Ortega, who is bound to ensure that he gets a piece of the action.
There’s action already: Last year Ortega made a $300 million telecommunications deal with Xinwei Telecom Enterprise Group, of which Wang Jing is chairman.
The canal, a project of Dubious Plans and Abundant Unknowns, cannot come about (as I have been saying from the start) without major support from the Chinese government. As O’Grady puts it,
China may still see the ditch as part of a military strategy,
A Nicaragua canal may fit as part of a military strategy along with the South China Sea projects.
