Chinese president backs Cuba's economic reforms

Chinese President Xi Jinping lauded Cuba's economic reforms on Tuesday during a visit to the communist-run island, saying they could lead to greater commercial ties between the nations.

Xi's visit to Cuba is part of a nine-day tour of Latin America that has highlighted China's growing ties to the commodities-rich region. He previously visited Brazil, Venezuela and Argentina.

Xi said in a statement reported on state website Cubadebate that Cuba "has continued on the road to socialism, firmly guarding state sovereignty while promoting economic growth."

"Both China and Cuba are at a key stage in their respective development," Xi said. "China has sounded the trumpet for deepening integrated reforms, while Cuba is now updating, in an integrated manner, its economic model."

Under President Raul Castro, Cuba has decentralized state-owned enterprises, legalized home and used car sales and let hundreds of thousands of people open or work for small businesses in the private sector. Cuban officials, however, say the reforms do not amount to an embrace of capitalism, but are rather an "update" of Cuba's socialist model to survive in the 21st-century global economy.

Xi arrived in Havana Monday night and plans to meet with Castro and see a ballet before traveling to the province of Santiago de Cuba on Wednesday.

China is Cuba's second-largest trade partner after Venezuela. Coinciding with Xi's visit, a group of Chinese and Cuban businesspeople inaugurated a plant that will produce biosensors for the detection and control of diabetes.

In Brazil, at a meeting of five emerging market powers known as the BRICS nations, Xi agreed to the creation of a development bank that aims to be an alternative to the World Bank and the International Monetary Fund, which are seen by some as too U.S.-centric. Xi also reached an energy agreement with Argentina's government.

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