In a video address delivered at the Seventh Summit of the Community of Latin American and Caribbean States (CELAC) on January 24, President Xi said China is ready to join hands with the LAC to promote world peace and development, build a community with a shared future for humanity, and open up an even brighter future for the world.

Latin American and Caribbean countries are also interested in the opportunities that China can offer the region. The path of China-LAC relations has been driven by respect for sovereignty, common development and South-South cooperation.

Economic and trade ties 

In 2010, China overtook Japan as the world's second largest economy. China is the LAC's second largest trading partner. In 2021, despite the COVID-19 pandemic, the value of trade between China and the LAC increased by 41 percent compared to 2020, registering a record-breaking $451 billion.

On the financing front, between 2012 and 2022, China made loans to 16 countries in the region. Unlike traditional financing, which requires the institution of socioeconomic reforms in the recipient countries, the loans issued by China are characterized by non-interference in internal affairs of the recipient countries and by respect for their sovereignty.

The LAC region has become a significant destination for Chinese capital. Between 2012 and 2022, Chinese investment in the region reached $171 billion. Brazil, Peru, Chile, Mexico and Argentina have received 83 percent of this volume.

Diplomatic relations

The political relationship between China and the LAC has been getting stronger and stronger. In the last decade, five countries in the region, namely, Panama, the Dominican Republic, El Salvador, Nicaragua and Honduras, established or resumed diplomatic relations with China on the basis of the one-China principle. With their addition, 26 of the 33 Latin American and Caribbean countries now have diplomatic relations with China.

China has repeatedly expressed its willingness to deepen relations with all Latin American and Caribbean countries and support each other on issues such as state sovereignty and territorial integrity.

The interest of Latin American and Caribbean countries in closer relations with China has also been reflected in their expanding cooperation under the framework of the China-proposed Belt and Road Initiative (BRI), which aims to boost connectivity along and beyond the ancient Silk Road routes.

President Xi proposed the BRI in 2013 and said in 2017 that the LAC is a natural extension of the initiative. So far, 21 countries in the region have already joined the BRI.

The success of the initiative in the LAC is part of a global trend, with 151 countries around the world now participating in Belt and Road cooperation.

China and the LAC have also collaborated more actively in multilateral forums. The launch of the China-CELAC Forum in 2015 stands out as a stable platform for long-term communication between the two sides, with the editions held since then bringing them together to share their development experiences.

Some Latin American and Caribbean countries have taken steps to further strengthen their political ties with China, such as Argentina, which in 2022 announced its intention to join the BRICS group formed by Brazil, Russia, India, China and South Africa.

Technological cooperation

Technological cooperation is another important area of China-LAC relations. It is not limited to digital technologies, such as the installation of 5G networks, but also includes aerospace agreements, such as the one reached by China and Argentina to establish a joint space observation station, as well as sustainable, wind, photovoltaic and nuclear energy projects.

Sharing China's achievements in technology is essential for the development of Latin American and Caribbean countries, since it contributes to raising the productivity of their economies and lays the foundations for creating goods with greater added value.

Health cooperation gained new momentum during the pandemic. In the first stage of the pandemic, in 2020 and 2021, China donated personal protective equipment and supplied test kits to help Latin American and Caribbean countries control the chains of infection. It also sent medical teams to these countries to share its experience in fighting the virus. Subsequently, once it had developed its own vaccines, China shipped millions of doses to Latin American and Caribbean countries. China's solidarity with the LAC allowed the governments of the region to better respond to the challenges of the pandemic.

As is clear from this brief report, in the last decade, collaboration between China and the LAC has reached a new level. Latin American and Caribbean countries have sought to deepen their relations with China, hoping to share the opportunities arising from China's development.

The ongoing geopolitical shifts open new spaces for China and the LAC to strengthen their relations, promote a multipolar world, underpin a more democratic international order, and build a community with a shared future. Much has been achieved in recent years, but more can be done in the future. The development route that China takes is a peaceful one and we hope we can learn from it.

Latin American and Caribbean countries have sought to deepen their relations with China, hoping to share the opportunities arising from China's development

The author is a researcher at the Mexican Center for Economic and Social Studies  

Copyedited by G.P. Wilson 

Comments to yanwei@cicgamericas.com