If Costa Rica continues to restrict Chinese companies from the 5G market then their relationship will be in jeopardy.

On Tuesday, March 19 this was stated by Qui Xiaoqi, the special representative for Latin American affairs of the Government of China, in response to a News Journalist’s question. He also stated that if the Government of Costa Rica does not rectify this issue then it will demotivate the Chinese companies from investing in their country.

If Chinese companies are excluded, and others are not, then Xiaoqi states that Costa Rica will have to pay approximately US$1.5 billion, aside from the fact that it would cause delays of up to 2 years with the execution of 5G.

The week prior, Arnoldo Andre Tinoco, foreign minister of Costa Rica, denied that the Government had a problem and promised that it will not affect their relationship with China.

Because China is not a signatory in the Budapest Convention, that country would not be considered in the 5G offer. This is according to the decree issued by the executive branch associated with the regulation of 5G and higher networks.

Xiaoqi expects the free trade agreement (FTA) that was signed between both Costa Rica and China to be honoured. This agreement was signed over 20 years ago to unify the rules against cybercrime.

According to experts, this agreement cannot be above the FTA that both countries signed as it could lead to a multimillion-dollar lawsuit.

China, according to the United Nations, represents over 30 per cent of the world’s economy and has ties with over 140 countries worldwide.