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Enhancing cooperation with developing countries， including Latin American and Caribbean nations， has long been a foothold of China’s foreign policy.
After attending the Sixth BRICS Summit hosted by Brazil on July 15-16， Chinese President Xi Jinping paid state visit to four Latin American countries—Brazil， Argentina， Venezuela and Cuba—between July 17 and 23， strengthening China-Latin America relations with a host of newly signed deals.
President Xi has been making efforts to build a favorable international environment for China since he took office last year. Through his frequent diplomatic visits， economic ties and common interests with other countries have bolstered and expanded along with China’s global political clout. Moreover， Chinese leaders’ growing presence in far-flung countries is increasingly important amid the United States’ rebalancing to the Asia-Pacific.
China and Latin American countries share many common interests in terms of trade and international politics. In recent years， especially， trade between China and many Latin American states—including Brazil， Argentina and Venezuela—has increased rapidly. Both China and Latin American countries have called on the international community to reform current global governance institutions and establish a fair and rational international political and economic order. As the global economic recovery faces uncertainties， both China and Latin America need to enhance their cooperation in addressing challenges and realize a sustainable and inclusive growth.
Building a mechanism
In Brazil， the Chinese leader’s first stop on the Latin American tour， President Xi met with leaders from 11 Latin American and Caribbean countries on July 17. They jointly announced the decision to officially establish a cooperation forum between China and the Community of Latin American and Caribbean States （CELAC） after a China-CELAC leaders’ meeting in the Brazilian capital.
In his keynote speech， Xi said， “It has been our shared aspiration to have closer overall cooperation.” China and CELAC also agreed to hold the forum’s inaugural ministerial meeting in Beijing as soon as possible.
“Within the framework of the forum， China looks forward to increasing dialogue and cooperation with regional and subregional organizations and ensuring the success of the China-Caribbean Economic and Trade Cooperation Forum， thus creating a comprehensive and well-designed network for overall development，” Xi said. Wu Hongying， Director of the Institute of Latin American Studies at China Institutes of Contemporary International Relations，told Economic Information Daily that the establishment of the China-CELAC Forum is a crucial step for China and the regional community to set up a comprehensive cooperation mechanism.
This forum models after the current successful dialogue mechanism between China and the Association of Southeast Asian Nations （ASEAN）， Wu said. According to Wu， the forum ushers in a new stage of cooperation between China and CELAC. Latin American and Caribbean countries are home to one of the most highly prospective regions in the world economy.
“The forum is just the start for building a cooperative mechanism between China and CELAC，” Wu said. “The institution will considerably promote bilateral and multilateral cooperation between China and Latin America.”
The establishment of China-CELAC Forum reflects the growing confidence and maturing foreign policies of China in the international arena， said Sun Hongbo， researcher of Latin America at the Chinese Academy of Social Sciences in an interview with Economic Information Daily. As an important regional integration organization， CELAC needs to balance various appeals and interests among its 33 members， which is a key factor for the development of the forum， Sun said.
Additionally， China underscored its sense of international responsibility by offering a number of loans and aid measures to Latin America at the meeting， including a special loan of $10 billion for infrastructure construction， a favorable loan of $10 billion， a$5-billion contribution to a cooperation fund， and $50 million for agriculture projects.
Both China and CELAC should promote people-to-people communication and extend mutual understanding. China will also provide Latin American and Caribbean countries with 6，000 government scholarships within the next five years to promote communication in science and technology， Xinhua News Agency reported.
Building partnerships with other countries is a major element of China’s foreign policy. Presently， China has established partnerships with the four nations of Brazil， Argentina， Venezuela and Cuba—all of which President Xi visited on his tour， allowing for the further enhancement of bilateral relations.
This year marks the 40th anniversary of the establishment of diplomatic relations between China and Brazil， Argentina and venezuela respectively， highlighting a special significance for Xi’s visit to the three countries. Reinforcing partnerships
Today， China has become the first or second largest trading partner for many Latin American countries， including the four nations that President Xi most recently visited. From 2011 to 2013， China’s annual investment in Latin American and Caribbean countries exceeded$10 billion， playing an important role in driving Latin American economic growth， China Radio International reported.
Bilateral trade between China and Brazil increased rapidly from $5 billion in 2002 to nearly $90 billion at present， said the Brazilian Ambassador to China valdemar Carneiro Leao in an interview with Xinhua.
The investment of Chinese enterprises in Brazil has expanded from mineral and energy to manufacturing and information technology as well as financial services. Many Brazilian companies have also established branches in China， Leao said.
Brazil holds a leading position in the aircraft industry. For example， Embraer S.A.， a jet producer of Brazil， has accounted for 70 percent of market shares in commercial jets with less than 120 seats in China since it entered the country in 2000， Leao said.
China and Brazil issued a joint statement pledging to enhance their comprehensive strategic partnership and increase communication on regional and global issues on July 17. The two sides signed 56 agreements during Xi’s state visit to Brazil.
Argentina is a member of the G20 and a major economy of South America. During Xi’s visit to the country， China and Argentina agreed to upgrade the bilateral ties to a comprehensive strategic partnership on July 18.
China and Argentina first established a strategic partnership in 2004. Since then， bilateral trade has grown dramatically from$4.1 billion to $14.8 billion last year. China has also become the largest exporting desti- nation for Argentina’s agricultural products. On July 18， the two countries signed an agreement to finance the largest hydropower station project in Argentina.
venezuela also issued a joint declaration with China on upgrading bilateral ties to a comprehensive strategic partnership on July 21 during President Xi’s visit.
venezuela， while rich in oil resources， has a big demand for infrastructure construction and economic development， Chinese Ambassador to venezuela Zhao Rongxian told Xinhua. The volume of trade between China and venezuela reached $19.2 billion in 2013. The strategic cooperation on energy has taken shape since the two countries built a partnership for common development in 2001. On one hand， China’s demand for oil has grown steadily in recent years； on the other hand， venezuela is implementing a strategy to diversify its oil exports， Zhao said. Cuba is seen as an old friend to China. In 1960， Cuba became the first Latin American nation to establish diplomatic relations with the People’s Republic of China. Despite the many twists and turns of international relations， the friendship between the two countries remains strong. During his tour in Havana， capital of Cuba， on July 22， President Xi paid a visit to Cuban revolution leader Fidel Castro—an iconic figure of the Cold War period and a founder of the Sino-Cuban friendship. President Xi and Cuban leader Raul Castro pledged that the two countries will remain long-term partners in the search for reciprocal cooperation.
China has advantages in infrastructure and railway construction， which appeals to many developing countries， said Zhou yongsheng， professor of international relations at the China Foreign Affairs University.
“In spite of being an increasing economic power， China does not attach political conditions on its loans to other countries； nor does it interfere in the internal affairs of debtor nations，” Zhou said. “For this reason， developing countries are willing to work and cooperate with China.”
After attending the Sixth BRICS Summit hosted by Brazil on July 15-16， Chinese President Xi Jinping paid state visit to four Latin American countries—Brazil， Argentina， Venezuela and Cuba—between July 17 and 23， strengthening China-Latin America relations with a host of newly signed deals.
President Xi has been making efforts to build a favorable international environment for China since he took office last year. Through his frequent diplomatic visits， economic ties and common interests with other countries have bolstered and expanded along with China’s global political clout. Moreover， Chinese leaders’ growing presence in far-flung countries is increasingly important amid the United States’ rebalancing to the Asia-Pacific.
China and Latin American countries share many common interests in terms of trade and international politics. In recent years， especially， trade between China and many Latin American states—including Brazil， Argentina and Venezuela—has increased rapidly. Both China and Latin American countries have called on the international community to reform current global governance institutions and establish a fair and rational international political and economic order. As the global economic recovery faces uncertainties， both China and Latin America need to enhance their cooperation in addressing challenges and realize a sustainable and inclusive growth.
Building a mechanism
In Brazil， the Chinese leader’s first stop on the Latin American tour， President Xi met with leaders from 11 Latin American and Caribbean countries on July 17. They jointly announced the decision to officially establish a cooperation forum between China and the Community of Latin American and Caribbean States （CELAC） after a China-CELAC leaders’ meeting in the Brazilian capital.
In his keynote speech， Xi said， “It has been our shared aspiration to have closer overall cooperation.” China and CELAC also agreed to hold the forum’s inaugural ministerial meeting in Beijing as soon as possible.
“Within the framework of the forum， China looks forward to increasing dialogue and cooperation with regional and subregional organizations and ensuring the success of the China-Caribbean Economic and Trade Cooperation Forum， thus creating a comprehensive and well-designed network for overall development，” Xi said. Wu Hongying， Director of the Institute of Latin American Studies at China Institutes of Contemporary International Relations，told Economic Information Daily that the establishment of the China-CELAC Forum is a crucial step for China and the regional community to set up a comprehensive cooperation mechanism.
This forum models after the current successful dialogue mechanism between China and the Association of Southeast Asian Nations （ASEAN）， Wu said. According to Wu， the forum ushers in a new stage of cooperation between China and CELAC. Latin American and Caribbean countries are home to one of the most highly prospective regions in the world economy.
“The forum is just the start for building a cooperative mechanism between China and CELAC，” Wu said. “The institution will considerably promote bilateral and multilateral cooperation between China and Latin America.”
The establishment of China-CELAC Forum reflects the growing confidence and maturing foreign policies of China in the international arena， said Sun Hongbo， researcher of Latin America at the Chinese Academy of Social Sciences in an interview with Economic Information Daily. As an important regional integration organization， CELAC needs to balance various appeals and interests among its 33 members， which is a key factor for the development of the forum， Sun said.
Additionally， China underscored its sense of international responsibility by offering a number of loans and aid measures to Latin America at the meeting， including a special loan of $10 billion for infrastructure construction， a favorable loan of $10 billion， a$5-billion contribution to a cooperation fund， and $50 million for agriculture projects.
Both China and CELAC should promote people-to-people communication and extend mutual understanding. China will also provide Latin American and Caribbean countries with 6，000 government scholarships within the next five years to promote communication in science and technology， Xinhua News Agency reported.
Building partnerships with other countries is a major element of China’s foreign policy. Presently， China has established partnerships with the four nations of Brazil， Argentina， Venezuela and Cuba—all of which President Xi visited on his tour， allowing for the further enhancement of bilateral relations.
This year marks the 40th anniversary of the establishment of diplomatic relations between China and Brazil， Argentina and venezuela respectively， highlighting a special significance for Xi’s visit to the three countries. Reinforcing partnerships
Today， China has become the first or second largest trading partner for many Latin American countries， including the four nations that President Xi most recently visited. From 2011 to 2013， China’s annual investment in Latin American and Caribbean countries exceeded$10 billion， playing an important role in driving Latin American economic growth， China Radio International reported.
Bilateral trade between China and Brazil increased rapidly from $5 billion in 2002 to nearly $90 billion at present， said the Brazilian Ambassador to China valdemar Carneiro Leao in an interview with Xinhua.
The investment of Chinese enterprises in Brazil has expanded from mineral and energy to manufacturing and information technology as well as financial services. Many Brazilian companies have also established branches in China， Leao said.
Brazil holds a leading position in the aircraft industry. For example， Embraer S.A.， a jet producer of Brazil， has accounted for 70 percent of market shares in commercial jets with less than 120 seats in China since it entered the country in 2000， Leao said.
China and Brazil issued a joint statement pledging to enhance their comprehensive strategic partnership and increase communication on regional and global issues on July 17. The two sides signed 56 agreements during Xi’s state visit to Brazil.
Argentina is a member of the G20 and a major economy of South America. During Xi’s visit to the country， China and Argentina agreed to upgrade the bilateral ties to a comprehensive strategic partnership on July 18.
China and Argentina first established a strategic partnership in 2004. Since then， bilateral trade has grown dramatically from$4.1 billion to $14.8 billion last year. China has also become the largest exporting desti- nation for Argentina’s agricultural products. On July 18， the two countries signed an agreement to finance the largest hydropower station project in Argentina.
venezuela also issued a joint declaration with China on upgrading bilateral ties to a comprehensive strategic partnership on July 21 during President Xi’s visit.
venezuela， while rich in oil resources， has a big demand for infrastructure construction and economic development， Chinese Ambassador to venezuela Zhao Rongxian told Xinhua. The volume of trade between China and venezuela reached $19.2 billion in 2013. The strategic cooperation on energy has taken shape since the two countries built a partnership for common development in 2001. On one hand， China’s demand for oil has grown steadily in recent years； on the other hand， venezuela is implementing a strategy to diversify its oil exports， Zhao said. Cuba is seen as an old friend to China. In 1960， Cuba became the first Latin American nation to establish diplomatic relations with the People’s Republic of China. Despite the many twists and turns of international relations， the friendship between the two countries remains strong. During his tour in Havana， capital of Cuba， on July 22， President Xi paid a visit to Cuban revolution leader Fidel Castro—an iconic figure of the Cold War period and a founder of the Sino-Cuban friendship. President Xi and Cuban leader Raul Castro pledged that the two countries will remain long-term partners in the search for reciprocal cooperation.
China has advantages in infrastructure and railway construction， which appeals to many developing countries， said Zhou yongsheng， professor of international relations at the China Foreign Affairs University.
“In spite of being an increasing economic power， China does not attach political conditions on its loans to other countries； nor does it interfere in the internal affairs of debtor nations，” Zhou said. “For this reason， developing countries are willing to work and cooperate with China.”