China Strengthens Latin America Ties Amid Global Power Plays

Chinese President Xi Jinping begins his state visit to Latin America and the Caribbean from November 13 to 21, attending the APEC Economic Leaders' Meeting in Peru and the G20 Summit in Brazil, and meeting with Peruvian President Dina Boluarte and Brazilian President Luiz Inácio Lula da Silva. This visit, coinciding with the 10th anniversary of Xi’s China-LAC initiative, underscores China's ongoing commitment to Latin America and the Caribbean (LAC).

Economic Collaborations through the Belt and Road Initiative (BRI)

Since the launch of the Belt and Road Initiative (BRI) in 2013, China and Latin American and Caribbean (LAC) countries have fostered increasingly collaborative ties in sectors such as infrastructure, trade, and technology. Through a variety of projects and investments, China has contributed to the development of major infrastructure within LAC, including highways, ports, and energy facilities, which have improved regional connectivity and economic activity. These infrastructure projects not only facilitate trade but also provide job opportunities and drive economic growth in areas that have historically faced underinvestment.

According to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), China’s investments have had a considerable impact on employment and income growth across the region, with a noticeable increase in technology transfers and local production capabilities. The BRI framework has provided LAC countries with access to much-needed capital, boosting sectors from renewable energy to digital technology and laying a foundation for future cooperation that benefits both Chinese and LAC economies.

Green Technology and Trade – Impact

A core aspect of China's engagement in LAC is its promotion of green technology, especially in sustainable transportation. Chinese electric vehicles (EVs) and buses are now common in cities throughout LAC, offering an affordable and environmentally friendly alternative to conventional vehicles. This shift not only supports LAC's local sustainability goals by reducing carbon emissions but also lowers transportation costs, making these cities more livable and economically accessible. Chinese firms have also engaged in renewable energy projects across the region, including wind and solar power installations, further underscoring a commitment to green development.

In terms of trade, China has opened its markets to unique LAC products, such as Peruvian alpaca wool, Colombian coffee, and Chilean wines, giving these industries expanded access to the world’s most populous market. This increased access has driven revenue growth for local industries, supported regional employment, and helped LAC nations diversify their economies. By balancing green technology exports with increased imports from LAC, China has reinforced a mutually beneficial trade relationship that strengthens economic ties while promoting sustainable development goals.

Natural Resources and Agricultural Trade: China-LAC Economic Links

Another significant driver behind China's deepening interest in LATAM is the region's wealth of agricultural products and mineral resources. As one of the world's largest consumers of commodities, China relies on LAC for essential imports such as soybeans, copper, lithium, and iron ore. Brazil and Argentina, for instance, are leading suppliers of soybeans, a staple in China's agricultural imports. Additionally, countries like Chile and Peru export large quantities of copper, a metal crucial for China’s industrial and technological sectors.

Beyond agriculture, LAC nations are critical to China’s push for green technology, especially through lithium production. Bolivia, Argentina, and Chile, often referred to as the “Lithium Triangle,” hold some of the largest lithium reserves globally—essential for electric vehicle batteries, which aligns with China’s sustainability goals. This focus on natural resources, particularly in "crops and metals," underpins much of China’s economic strategy in the region and strengthens its commitment to building a resilient partnership with LAC.

China-LAC Relations: Mutual Respect and Non-Interference

China’s diplomatic approach in Latin America and the Caribbean aligns with its broader foreign policy principles, including the “community with a shared future for mankind,” which emphasizes mutual respect and cooperation without interference. This philosophy has resonated with several LAC countries, and in 2023, Brazil and Honduras signed joint statements with China to affirm shared goals around sustainable development, social equality, and economic cooperation on a global scale. China’s emphasis on respectful and equal partnership is seen as a distinctive alternative to traditional foreign powers, building trust and goodwill among LAC leaders.

Further, in a significant diplomatic move, China and Brazil jointly proposed a six-point resolution for peace in Ukraine in 2023, an effort that gained international support and showcased the alignment between LAC nations and China. This reflects a shared call for a more balanced global order, where LAC countries are positioned as partners rather than dependents, supporting China’s aim of multipolarity. Based on shared policy interests, China and LAC countries aim to create a framework for long-term diplomatic collaboration.

LAC countries view China's approach as one of equal partnership, diverging from the typical economic conditions often attached to aid. ECLAC reports suggest LAC leaders appreciate China’s role in enabling local development without compromising regional sovereignty.