NASSAU, BAHAMAS — With the threat of rising costs looming due to U.S. President-elect Donald Trump’s pledge to impose steep tariffs on Chinese imports to the United States—The Bahamas’ largest trade partner—the urgent need for The Bahamas to diversify its import sources and expand direct trade with China has become even more critical, a senior Chinese diplomat has noted while revealing that trade between The Bahamas and China reached $1.24 billion in 2024.
While addressing the Bahamas Business Outlook, H.E. Yan Jiarong, Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to the Commonwealth of The Bahamas, highlighted China’s expanding global economic influence and emphasized the potential for Bahamian products—particularly seafood, rum, and handicrafts—to tap into the Chinese market. The ambassador also discussed the opportunities and challenges of trade between China and The Bahamas, pointing to obstacles like high tariffs due to The Bahamas not being a member of the World Trade Organization (WTO).
“I am not surprised by the big growth in the goods trade between China and The Bahamas, because China has become the major trade partner of more than 150 countries and regions in the world, and the total goods trade has ranked first in the world for seven or eight consecutive years. Chinese products are of high quality, very competitively priced, and welcomed by people in various countries,” the Chinese ambassador noted. She noted that last year, trade between China and The Bahamas reached around $1.2 billion, which was an exceptional spike primarily due to the import of a large oil production vessel from China. Normally, the direct annual trade volume between The Bahamas and China is about $500 million.
Ambassador Jiarong pointed out that China ranks first in the world in terms of output for more than 40 percent of the world’s 500 major industrial products.
“The Chinese market can really provide a broad stage for Bahamian producers and services. China is a prosperous market. Despite rising uncertainties in the global economy, China has been steadfastly pursuing Chinese modernization and high-quality development. China’s economy has been generally stable and continues to gain momentum. In the first three quarters of 2024, China’s economy grew by 4.8 percent, which is one of the fattest among all major economies. China’s economy remains a stabilizer, an engine for the global economy. So this is China’s greatest strength and confidence in sharing opportunities and seeking common development with the rest of the world, including The Bahamas,” she pointed out.
The ambassador also underscored China’s commitment to an open market. “China is an open market. At a time of rising global protectionism, China has persisted in opening up its own market to a larger and greater extent, safeguarding the multilateral trade system and the global market environment for fair competition. China has granted all the least developed countries that have diplomatic relations with China zero-tariff treatment for 100 percent tariff lines. Very recently, provisional import tariffs lower than the most favored nation rates have been applied to 935 commodities. These measures aim to expand unilateral opening to the least developed countries, promote their trade with China, and foster common development for the global South.”
Looking at the potential for greater trade between The Bahamas and China, she added: “I can tell you that actually, the Chinese, they love seafood for sure. They love live lobsters. And so the Bahamian lobsters and seafood and rum, as well as your traditional handicrafts, are of high quality and have a very good reputation. So I do see export potential here. China-Bahamas trade in services, in my perspective, has greater potential. The Bahamas is a paradise of tourism and vacation, with well beyond tourism resources and hotel facilities.”
She noted that the Chinese Embassy has been doing its part to promote Bahamian tourism, having invited the Ministry of Tourism to participate in the China Import and Export Fair twice in recent years to promote the tourism industry.
The ambassador also pointed out that China has promoted the common development of its partner countries through the Belt and Road Initiative (BRI). China has implemented more than 200 infrastructure projects in Latin America and the Caribbean region, building thousands of kilometers of roads, railroads, and light railways, as well as more than 100 schools, hospitals, and stadiums. In addition, China has built nearly 100 bridges and tunnels, dozens of airports and ports, and more than 30 power facilities, providing nearly one million local jobs.
“At present, all countries in the Caribbean region that have diplomatic relations with China have joined the Belt and Road Initiative (BRI), except The Bahamas. We do look forward to The Bahamas joining the Belt and Road family at an early date to better share development opportunities,” the ambassador noted.
Despite the progress, she acknowledged that there are barriers to deepening China-Bahamas trade cooperation, such as distance and high transport costs. “The geographical distance between China and The Bahamas increases transport costs and makes travel between the two countries time-consuming and inconvenient,” she said. She also pointed out that The Bahamas’ non-membership in the WTO results in higher tariffs on products exported to China.
“The Bahamas is not a member of the World Trade Organization (WTO), which results in higher tariffs on products exported to China. For example, for countries like Jamaica, Barbados, and others that are WTO members, lobster exports to China are subject to a seven percent tariff. However, for The Bahamas, the tariff is 70 percent,” the ambassador noted. She also pointed out that the relatively small size of The Bahamas’ market and its limited production capacity pose challenges for scaling exports to China.
Ambassador Yan noted that although The Bahamas imports many goods from the North American market that are actually made in China.
“In the markets and stores in The Bahamas, you do find lots of products made in China, but they don’t come from China. They come from North American markets. So in the future, if high tariffs are imposed on Chinese goods, the cost of Chinese products imported by The Bahamas from North America will inevitably rise significantly. So, expanding diversified sources of imports and expanding direct trade between China and The Bahamas is realistic and I should say urgent. This will help to reduce prices in The Bahamas and improve the lives of the people,” she added.
President-elect Donald Trump has indicated that one of his top priorities when he takes office next week, will be to impose steep tariffs on Chinese imports, a move he claims would protect American jobs and bolster domestic manufacturing.
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