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SAN JOSE, Costa Rica — How do you say “pura vida” in Mandarin? Literally “pure life,” it’s one of Costa Rica’s most ubiquitous phrases used for expressing anything from gratitude to a simple salutation, or just to say “good vibes, man.”

The Chinese have been getting all sorts of pura vida lately.

Costa Rica will lift trade barriers in July on a slew of Chinese products, and vice versa, thanks to the countries’ bilateral free trade agreement, which allows goods to flow between them tariff-free.

The deal represents China’s closest such trade pact to the U.S. border, having inked agreements with Latin American countries Peru and Chile, a trend analysts say is part of China’s surging soft power in Washington’s “backyard.”

To get to this point, Costa Rica dropped longtime ally Taiwan in 2007 in favor of diplomatic ties with the People’s Republic of China, which has since become the world’s No. 2 economy. Once ambassadors were appointed, the path toward a cozier trade relationship was wide open.

Trade talks officially began in January 2009. With the Costa Rican legislature’s approval in May of this year, President Laura Chinchilla finally signed the free trade agreement into law in June.

Costa Rica, a staunch U.S. ally, shocked the world when it became Central America’s first country to officially recognize China.

When it became clear that Costa Rica would not use its new closeness to Beijing to press its leaders on human rights issues, the U.S. diplomatic corps in San Jose expressed dismay at what it called a “departure for the little country with the big love of human rights,” according to a classified cable published by newspaper La Nacion provided by WikiLeaks.

In appreciation for dropping Taiwan, China covertly purchased $300 million in Costa Rican bonds and quite publicly built a gleaming new 35,000-seat sports stadium. The bonds sale was meant to be kept secret but Costa Rica’s constitutional court forced the government to make the details public.

Then more gifts : 200 new police cars, $40 million credit line for small businesses and plans to share the bill for an oil refinery upgrade.

(Read: Why is China spending billions in the Caribbean? )

With the free trade agreement in effect, the Chinchilla administration hopes to better position a diverse offering of Costa Rican exports — from beer and coffee to hi-tech computer parts — within the world's fastest-growing market of more than 1.3 billion people.

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