Costa Rica's Foreign Minister Bruno Stagno announced Wednesday that the government has set up an embassy in China's capital Beijing, following up on Costa Rica and China establishing diplomatic relations on June 1.

The embassy will contain a consular office and Foreign Trade Ministry office to boost exports to China, the minister said.

He said that Costa Rica's decision to break its diplomatic relationship with China's Taiwan province and establish one with Beijing represents "a milestone in Costa Rican diplomacy."

He reiterated that the move represents "an act of political realism," adding that "this decision sits alongside the efforts we are making to open embassies in India and Singapore, and to incorporate Costa Rica in the Asia Pacific Economic Cooperation Forum."

He said that a diplomatic relationship with Beijing will boost cooperation and draw Chinese investment to Costa Rica, describing China as "the biggest market in the world and an economy with vigorous growth."

China currently buys US$1.08 billion worth of Costa Rican goods each year, and is the second most important export market for the nation after the US.

"We have begun an important but gradual process, from which we expect greater efficiency and quality from our diplomatic efforts," he said, adding that the specific diplomatic staff will be named shortly.

Costa Rica's President Oscar Arias is preparing his first official visit to China which will include some bilateral agreements, Stagno added.

(Xinhua News Agency July 12, 2007)