The dictatorship of Daniel Ortega and Rosario Murillo announced, within the framework of the XVII Chinese Latin American and Caribbean Business Summit, the signing of an agreement with the People’s Republic of China for the construction of a “new Eastern market”, the project is part of the contracts that Nicaragua has been accumulating with the Asian giant.
Construction of the building is scheduled to begin in May 2025 and is expected to have a construction period of 18 months. It will have 170 standard modules of 480 square meters and 50 commercial premises; However, the authorities did not mention the cost of Chinese investment that the project will have.
According to the design presented by the government during the summit, the building will have two floors. On the lower floor, small modules will be created that will function as small shops, as well as warehouses. On the second floor, a large warehouse will be created, which due to the investment, could be a gigantic Chinese store.
The new market will be on the side of the Pan-American highway and just 300 meters from the Eastern Market. The land will have a construction area of 79,500 square meters, will have parking for more than 200 vehicles and will have permanent security.
Chinese corner the market
With the breaking of political and trade agreements with Taiwan in 2021, the Daniel Ortega regime opened the doors to the Chinese market, creating alliances and a Free Trade Agreement (FTA) that came into force in January of this year, before 2022 the The presence of Asian trade was limited in the Nicaraguan market.
Since 2023, the first stores were opened in the country, including: El Bazar Chino, China Mall, Mosaíco Chino, Chinese Supermarket, among others that quickly became competition with other stores in Central American capital such as De Todo (Mexican) or Almacenes Siman (Salvadoran).
The strong Chinese investment led to the rapid expansion of stores to the market in the departments of Nicaragua, including Chinandega, León, Matagalpa and Estelí, which receive products directly from Chinese suppliers, so sales costs are reduced compared to the small entrepreneur.
«I had my handbag and makeup business here in front of my house, I already had my regular clients, but now that those Chinese stores opened, my business fell because before I traveled to the Oriental to be able to give a good price to my clients, but now “They sell it here in their air-conditioned store for up to 30 or 50 pesos less,” says an entrepreneur who lives in the commercial area of Ciudad Sandino.
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The Eastern Market was one of the first commercial points in which Chinese stores appeared, the Ciudad Jardín area has become a reference for these stores. The market in this area was dominated by Arab business owners in stores such as Alexandria, The King of Good Dress or the Tsar of Fashion.
Now in the Ciudad Jardín area, as confirmed Article66there are more than 6 stores with Chinese owners and products, which offer low prices and a greater variety of products. The Asian product is recognized in the world for its mass production with lower quality, which makes it affordable to the consumer.
«The Chinese have inundated us with their bad products, you find everything in those stores and cheap but they are things for a while, after a week they are already damaged and you have to buy from them again, they are not like American products, better quality, but what are we going to do? “Those are the ones who came, the Chinese,” says a buyer who preferred to omit her name.
The growth of these businesses skyrocketed after the FTA with China was approved by the National Assembly in November 2023, days after the signing of the document between Laureano Ortega Murillo and the Minister of Commerce of China, Wang Wentao, on December 30. August 2023.
