China’s president Xi Jinping, Brazil’s President Luiz Inacio Lula da Silva, Chile President Gabriel Boric, Colombia’s President Gustavo Petro and other representatives of the Latin American and Caribbean states (Celac) in front of the China-Celac-forum in Beijing.Keystone
China Strengthens Ties with Latin America Amidst Global Trade Tensions
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in a strategic move to bolster international partnerships, China is significantly expanding its trade relations with Latin America, signaling a deepened commitment to the region following a temporary easing of customs duties with the United states. President Xi Jinping, during the China-celac forum, emphasized china’s dedication to being a steadfast good friend and partner
to Latin American nations. [1]
Amidst rising global protectionism and trade confrontations, China is actively seeking to enhance collaboration with Latin America and the Caribbean across various sectors, including infrastructure, raw materials, food, 5G technology, and artificial intelligence. xi Jinping articulated a vision of mutual benefit, stating that there are no winners in customs wars.
This approach underscores China’s desire to foster a cooperative environment that contrasts with the uncertainties of global trade disputes. [2]
Financial Commitment to Regional Development
As part of its commitment, China has pledged to increase imports from Latin American and Caribbean countries and to further invest in the region’s development.Beijing has earmarked 66 billion yuan (approximately 8.2 billion euros) for development initiatives, demonstrating a tangible commitment to fostering economic growth and stability in the region.
China’s Strategic Interests in Latin America
China’s engagement in Latin America is driven by several strategic objectives. Access to raw materials is a primary interest, with increased purchases of soybeans from Brazil aimed at diversifying import sources and reducing reliance on the United States. Moreover, Latin America possesses vital resources such as lithium from chile, crucial for battery production and the burgeoning electric vehicle industry. Chile’s President gabriel Boric has noted that countries of the global south are key players in global development.
Countries of the global south are the protagonists for development.
Gabriel Boric, President of Chile
Beyond raw materials, china seeks to secure access to Latin American markets and is investing heavily in infrastructure through its “New Silk Road” initiative. Over 200 infrastructure projects have been launched in the region, facilitating trade and strengthening economic ties.
Port Infrastructure: A Focal point of Geopolitical Interest
The development of port infrastructure in Latin America has become a significant area of focus, highlighting the geopolitical competition between China and the United States.The inauguration of the Chancay low-water port in Peru, operated by China’s state shipping company Cosco, underscores China’s growing influence in the region’s maritime infrastructure.
The Panama Canal remains a critical point of contention. Allegations of Chinese control over the vital sea trade route, stemming from Hong Kong-based CK Hutchison’s involvement in ports, have been refuted by beijing. The proposed sale of CK Hutchison’s port division to U.S. finance company Blackrock has prompted scrutiny from Chinese authorities,reflecting the strategic importance of these assets.
Trade Volume Growth and Future Prospects
The trade relationship between China and Latin America has seen substantial growth. In 2024,the trading volume reached $518.4 billion (approximately 466.8 billion euros).Foreign Ministry spokesman Lin Jian stated that trade in goods “will continue to grow at a high rate and achieve a higher level of mutual benefit and win-win results” [3]. This trajectory suggests a promising future for economic cooperation between the two regions.
Diplomatic Engagement and Regional Representation
The level of diplomatic engagement at forums like China-Celac reflects the varying degrees of importance that Latin american nations place on their relationship with China. While Panama sent its ambassador, countries such as Chile, Brazil, and Colombia dispatched high-level delegations, signaling a strong commitment to fostering closer ties with Beijing.