The two-day forum bringing together China and the 33 countries of the Community of Latin American and Caribbean States in Beijing last week - the first of its kind - ushers in an era of bilateral cooperation in trade, political security and development. First, China is becoming a juggernaut in the region and is reaping the benefits of the United States' decreasing leverage in its own backyard. Beijing is deepening South-South cooperation and mutual trust with left-leaning heads of state in Latin America, namely Bolivia's Evo Morales and Venezuela's Nicolas Maduro, who are increasingly distancing themselves from Washington. By pledging to boost investment in Latin America by US$250 billion over the next decade, President Xi Jinping is discrediting the US-headquartered Organisation of American States, which originally served as a bulwark against communist penetration in the continent. In contrast, the Community of Latin American and Caribbean States is an alternative political bloc established in 2011 in Venezuela. Emblematic of China's increasing clout, trade in goods with Latin America skyrocketed from more than US$12 billion to about US$275 billion between 2000 and 2013, according to a report by the UN Economic Commission for Latin America and the Caribbean, published on the first day of the forum. Under the banner "New platform, new starting point and new opportunity", Xi and Latin American leaders also reasserted their desire to redraw the international economic map. Latin America is not only a commodity basket for the second-largest economy on the planet, it also plays an important role in Beijing's strategy to internationalise its renminbi and hence become a financial power. Using renminbi in international transactions with Latin America would strengthen the competitiveness of Chinese financial institutions and mitigate exchange-rate risks. Indicative of Beijing's unprecedented financial clout, the China Development Bank denominated half of its US$20 billion loan to Venezuela in renminbi in 2010. Caracas, which has borrowed about US$50 billion in recent years from the Asian giant, is today the largest recipient of Chinese credit in Latin America. In addition, the forum in Beijing reaffirmed Latin America's strategic role for China as a stepping stone to the US market. In particular, China is strengthening its ties with Mexico, one of the US' largest trade partners. There, Beijing has opened about 30 maquiladoras - factories that enjoy tax breaks - to capitalise on the less expensive labour. These factories allow China to benefit from the North American Free Trade Agreement - which eliminates tariffs between Canada, Mexico and the US - and have more competitive manufactured products in the US market. This is also good business for China as production costs in Mexico are lower. Finally, China is courting Latin America for knowledge transfer purposes. Emerging economies like Brazil offer insights into how to overcome the middle-income trap, which China faces. Last year, productivity in China was a drag on growth, adding to worries about the economy. Latin America has proved that development relies both on the size and the stability of the middle class - advice that China could use as economic reforms get under way. On the other hand, the Sino-Latin alliance has significantly benefited Latin America as it has increased demand for raw materials and boosted trade amid falling demand from the US and European Union. Kamilia Lahrichi is a foreign correspondent based in Argentina, and is the recipient of the 2014 United Nations Foundation's "Global Issues" Journalism Fellowship. www.kamilialahrichi.com