2016年CRI Experts value Premier Li Keqiang's upcoming visit to Cuba

Premier 1 Li Keqiang's upcoming tour marks the first official visit to Cuba by a Chinese premier, since the two countries established diplomatic ties in 1960.

As market-oriented economy is expanding its hold, along with the newly-restored US-Cuba relationship, Cuba is now facing new challenges brought by the change of domestic and international environment.

Chu Yin, senior researcher with the Center for China and Globalization, a Beijing-based thinktank, says Premier Li's visit can help ease uncertainties 2 that exist in Cuba's economic development and offer new possibilities for bilateral 3 cooperation.

"Cuba wants to deepen economic reforms without any risks of subverting 4 the state political power. China's reform and opening-up policy is a perfect experience for Cuba to draw on. At the same time, though the US has lifted its sanctions, Cuba still has some concerns about attracting American capital. So the funds from China seem much safer. Cuba also aims to increase investment from China, in order to become a transfer station or support point for China's trade in Latin America and the Caribbean Region."

Currently, China is Cuba's second-largest trading partner. And Cuba is China's largest trading partner in the Caribbean region.

Official statistics show the bilateral trade volume between the two countries surpassed 2 billion US dollars in 2015, eyeing a 57% growth rate compared to figures for 2014.

"Cuba has long been playing a leading role in the Caribbean region. Its perfect geographic 5 location, together with its good reputation in education and medical treatment, has made it an ideal place for business, tourism and high-tech 6 development. China is undergoing supply-side structural 7 reform, along with the appeal for the mass entrepreneurship and innovation. The two countries can explore new ways in capacity shifts and cooperation."

In recent years, Cuba has seen more presence of Chinese automotive, electronics and renewable energy companies. Huawei inked a deal with Cuban telecom company Etecsa last December, to sell its smartphones in the island nation.

But, Chen Fengying, a senior researcher from China Institutes of Contemporary International Relations, also outlines the challenges that hinder these enterprises' expansion.

"The geographic distance between China and Cuba is quite far, which has increased the trade and transportation costs. Moreover, Cuba's market is not fully 8 open as the reform is still in its initial stage. This means the approval systems and standards of market access may pose challenges for Chinese enterprises' exploration in the local market. Also, Cuba has a different corporate 9 philosophy than us. They prefer a slow pace of life without working overtime 10. So Chinese enterprises should get familiar with local laws, and integrate with local culture for long-term development."

However, she stresses there is a huge space for China-Cuba cooperation, as the two economies are highly complementary.

"Our products are very popular in Cuba, which is beneficial to local economic and social development. And Cuba has abundant natural and personnel resources. During Premier Li's visit, the two countries are expected to sign around 30 cooperative documents, covering various fields including finance, technology, quality control and environmental protection."

Professor Chen also indicates infrastructure 11, telecommunications, and logistics are also potential areas for bilateral cooperation.