Jiang Shixue*: Towards a brighter future for China-Latin America relations

▲ Peru is seeking to promote a high-level meeting with China and Brazil to discuss the development of a railway project that would connect the Atlantic and Pacific Oceans via the Peruvian megaport of Chancay, the Ministry of Economy reported in Lima. Photo @CRECofficial

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so far, in what This year, the most notable meeting of Chinese diplomacy has been the Fourth Ministerial Meeting of the China-CELAC Forum, held in Beijing on May 13. President Xi Jinping delivered an opening speech in which he announced that China is ready to join its partners in Latin America and the Caribbean (LAC) to launch five programs to promote our shared development and revitalization and contribute to a China-LAC community with a common future . These five ambitious and forward-looking programs aim to strengthen political solidarity, promote economic development, foster cultural exchanges, safeguard world peace, and expand people-to-people connectivity.

The fourth ministerial meeting also unveiled a joint action plan for the period 2025-2027. It covers every imaginable area of ​​bilateral cooperation: from the fight against poverty to combating corruption, from climate change to cybersecurity, from investment to innovation, from political trust to people-to-people exchanges, and from technology to trade.

However, transforming the action plan into concrete results is no easy task. As the plan amounts to a roadmap, both parties must take tangible steps during its implementation. In other words, both parties must keep their word, as intentions to further promote the relationship cannot remain mere rhetoric. Talking for the sake of talking is unproductive, so to achieve all the major goals announced in the joint declaration, it is necessary to redouble efforts to avoid falling into the trap of talking without acting.

After all, promoting bilateral relations is a two-way street. On the Chinese side, it is necessary to continue investing in Latin America, not only in infrastructure, but also in high technology, manufacturing, and agriculture, among others. At the same time, China must further open its market to non-traditional Latin American products.

In Latin America, improving the investment environment by reducing country risks is crucial to attracting more Chinese investment. According to the World Bank's Doing Business ranking, Chile is the highest-ranked country in Latin America, ranking 59th. Many others rank above 100th. This type of environment is not favorable for Chinese investors.

It's true that the Chinese market is vast and offers many opportunities for foreign products. However, it's also very competitive. To enter it, it's necessary to increase the competitiveness of products.

Some Latin American countries often complain that their trade balance is unfavorable. Therefore, they want China to buy more from them. The question is: what can Latin America sell to China besides traditional products?

Latin Americans must understand that policy continuity is important for both domestic and foreign affairs. However, all too often, government policies in Latin America tend to change when the opposition comes to power. This pattern of abrupt changes not only undermines long-term development goals but also weakens international partnerships. In this regard, we have, for example, Argentine President Javier Milei's attitude toward China, which has called into question whether the previous administration's policy can be sustained.

Both China and Latin America must take joint actions to further promote bilateral relations. At the current stage, they must deal with the so-called US factor subtly. In fact, since the beginning of China's economic presence in Latin America, the United States has expressed concern or even vigilance regarding the development of South-South cooperation in the Pacific. Washington has made great efforts to sow discord between China and Latin America and has also used the carrot -and-stick tactic to dissuade Latin American countries from getting closer to Beijing. Apparently, the US objective in launching the América Crece (Growth in the Americas) program in 2019 and the Partnership for Economic Prosperity of the Americas in 2023 was to counter the influence of China's Belt and Road Initiative (BRI) in the region.

This kind of carrot goes well with the stick . President Donald Trump declared that the US would reclaim the Panama Canal through powerful action. It's no surprise that Panama decided to withdraw from the BRI and that Hong Kong-based CK Hutchison announced the sale of its majority stake in two ports in the Panama Canal Zone, along with many other ports around the world.

Dealing with the impact of the US factor on China-Latin America relations is no simple task. On the one hand, Latin American countries could follow the advice of Jorge Heine, former Chilean ambassador to China, and opt for active non-alignment in the face of the current trade confrontation between the two powers. On the other hand, efforts should be made to create a triangle of cooperation between the business sectors of China, the US, and Latin America, so that all three parties benefit: a true win-win-win.

Another joint action that both sides should undertake is strengthening mutual understanding. Due to language barriers, geographical distance, and differences in political, economic, and social systems, not many Chinese are well-versed in Latin America, and the same is true vice versa. The joint action plan for 2025-2027 proposes various ways to strengthen this understanding. For now, and also in the near future, efforts to promote tourism are needed. China has decided to grant visa-free entry to citizens of Brazil, Argentina, Chile, Peru, and Uruguay as part of its efforts to facilitate cross-border travel and strengthen people-to-people exchanges. This is undoubtedly a welcome gesture.

In Latin America, there's a well-known proverb: "Whoever has a friend has a treasure ." It's safe to say that China and Latin America will continue to value their friendship for generations to come.

* Professor at the Macau University of Science and Technology