Beijing to host Latin America delegation in bid to flex muscles on doorstep of US

Beijing will flex its financial muscles to strengthen ties with Latin America as the Chinese capital hosts its first cooperation forum with nations in a region seen as the US' backyard.

The two-day forum starting tomorrow is the latest move by China to engage Latin American and Caribbean states, some of which have diplomatic ties with Taiwan, after a series of high-level exchanges over the past month.

China has held similar forums with other regions, such as Africa, and the Latin American event shows Beijing's eagerness to exert wider influence.

Leaders and ministers from about 30 countries are expected to attend and map out a consensus for future cooperation.

Economist Zhao Changhui, from the China Society for International Finance, said Beijing might also announce investment projects. "China needs the region's commodities and resources," Zhao said. "At the same time, countries in the region are looking for ways to move away from the traditional geopolitics in which the United States plays a heavily dominant role."

China has stepped up its presence in Latin America over the past year, with President Xi Jinping making a nine-day trip to the region in July to reinforce political and economic links. During the trip, Beijing called for China, Peru and Brazil to form a working group to build a rail line from Peru's Pacific coast to Brazil's Atlantic shore.