The links between China and Latin America constitute a model for a new type of partnership amid the uncertainty surrounding the global economy, and the reorganization of world powers following World War II.
The strengthening of these ties implies a turning point in the history of the region's relations with major powers, historically based on aggression and attempts at subordination.
After several years of socio-economic rapprochement, China decided to strengthen its position in these countries, and the most feasible way to expand its presence was to become a key player in the economic development of the region.
As such, in 2014 China decided to recognize the Community of Latin American and Caribbean States (CELAC) as one of the most important bodies to promote mutual exchange in all fields.
China views the Latin American and Caribbean integration process as providing possibilities for future relations. Trade with the bloc of 33 countries encourages the growth of knowledge and the development of human resources.
CELAC presents itself as a strategic platform for China in its dealings with Latin America. Beijing, as its leaders have stated, does not intend to take immediate and temporary advantage of its ties with the region, instead its aspirations are directed toward shaping a balanced and sustainable relationship.
As an expression of this interest, the First China-CELAC Ministerial Forum was held last year in Beijing, a summit at which representatives of both sides agreed on issues fundamental to bolstering their relations.
From this new platform for multilateral dialogue, a commitment to expanding cooperation and common development in the economic, political and socio-cultural fields emerged.
ECONOMICS FOR INTEGRATION
A report by the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) recognized that the economies of these new partners will grow between two and three times faster than the industrialized nations over the coming years.
ECLAC invited the region “to rethink global and regional partnership strategies and to put greater emphasis on South-South ties in trade, foreign direct investment (FDI) and cooperation.”
Several years ago, China became the second largest trading partner in the region. Bilateral trade increased from $12.596 billion dollars in 2000 to $263.6 billion in 2014, according to official figures.
Imports from China account for 13% of the regional total and its market is the second largest destination of exports from countries such as Peru, Cuba and Costa Rica.
However, these figures are still considered insufficient on both sides. During the First Ministerial Forum, Chinese President Xi Jinping set a bilateral trade target of $500 billion dollars over the next ten years. To achieve this, China's direct investment in Latin America must reach $250 billion dollars.
The future of these goals lies mainly in the creation and correct implementation of a framework for cooperation, as well as the promotion of funding and projects for the development of key areas, such as infrastructure, investment, agriculture, energy resources, manufacturing, education, tourism, innovation and technology.
In this regard, the China-Latin America Cooperation Fund came into operation just recently with $10 billion dollars destined for investment in the abovementioned areas. According to reports, the fund will be adapted to Latin America social, economic and environmental development needs, as well as the region’s vision of sustainable development.
One of the priorities of these ties is to promote, through the exchange of experiences, the interests of each region. China's readiness to undertake infrastructure projects that integrate the Atlantic and Pacific coasts is greatly beneficial to Latin America.
The Asian nation is currently involved in the construction of a new port in Cuba and bi-oceanic rail link between Brazil and Peru. But the most important works surround the construction of an interoceanic canal in Nicaragua.
In this context, the American continent has the opportunity of advancing in its process of industrialization. Exports to China of some of the major commodities produced in the area, is a situation which, according to experts, should lead to the diversification of the economy and an end to the monoculture production so abundant across the region.
While China is undergoing a process of opening up and reforming its economy, Latin America faces the challenge of consolidating its integration. Consequently, the main objective should be to link the two agendas to ensure the joint productive economic development that can launch them as global growth poles.
“There are many challenges facing bilateral economic relations, but there is a keyword: diversification. In the past 15 years, we have seen great dynamism. The value of bilateral trade increased 22 times between 2000 and 2014,” explained Professor Sun Hongbo, of the Institute of Latin American Studies of the Chinese Academy of Social Sciences.
ECLAC Executive Secretary Alicia Bárcena noted that through this mutually beneficial relationship, the rich experience accumulated by Latin American countries in terms of innovative social policies, urban development, environmental protection and other areas could also assist China in addressing the major challenges it faces in its own development.
In this sense, the China-CELAC Cooperation Plan 2015-2019 provides an appropriate institutional framework to advance in all these areas and create more prosperous and less unequal societies.
A STRATEGIC ALLIANCE
China's strategic interest in cooperation with Latin America and the Caribbean is not limited to economics. The Asian nation has formed alliances with our continent within the major international organizations such as the UN, the World Trade Organization, the International Monetary Fund and the World Bank.
Xu Shicheng, lecturer and researcher at the Institute of Latin American Studies of the Chinese Academy of Social Sciences, believes that the political ties between his country and Latin America are one of the main strengths of their relations.
In this regard, he highlighted the number of high-level visits made by both sides in recent years. Since 2000 to date, two Chinese Presidents (Hu Jintao in 2004, 2008 and 2010, and Xi Jinping in 2013 and 2014) and two Prime Ministers (Wen Jiabao in 2012, and Li Keqian in 2015) have toured the region.
Agreements at the government level have served, among other things, to create mechanisms for consultation and expand contact between parliaments and political parties.
The First China-CELAC Political Parties' Forum, which brought together 27 organizations from 26 countries in Latin America and the Caribbean, also helped strengthen the degree of political participation in these ties.
The close relations that China has cultivated for several decades with countries in the region have stimulated the growth of this cooperation and created mutual trust.
The relations between China and Latin America and the Caribbean are sufficiently mature to take a leap forward in terms of quality and move towards strategic ties of the highest level, as recognized by all parties.
The very process of Latin American integration should be favored by the experience accumulated by China after centuries of efforts to preserve an ancient culture.
Linguistic, literary and musical exchanges will also contribute to the learning and understanding of different cultures and thus raise the level of bilateral dialogue.
In a short period of time, over thirty Confucius Institutes for the study of Mandarin and Chinese customs in general have been established across the region. Meanwhile, the Chinese Academy dedicates study to the challenges facing the continent and Spanish, Portuguese and Latin American literature.
Student exchange has become one of the ways to promote cultures. Over the next five years 5,000 scholarships will be awarded to Latin American students who wish to study in China.
The economies and societies of China and Latin America are highly complementary, which is why the intention to increase economic and trade cooperation is welcomed by all parties.
Despite being separated by thousands of kilometers, these countries are seeking to build and strengthen coordination strategies in the most important areas of this turbulent 21st century.
