Chinese Premier Li Keqiang returns from South America with a caseful of deals
But analysts warn that while Beijing’s aid and investment – mainly in infrastructure and commodities extraction – will benefit the region, it remains largely tilted in China’s favour
Premier Li Keqiang was returning home from a Latin American tour on Tuesday with a briefcase full of deals that bolster a relationship profitable for the region’s slowing economies but still highly unequal.
On Monday, Li and Chilean President Michelle Bachelet signed a currency swap deal seeking to deepen economic ties by boosting trade and investment.
The currency swap agreement between Chile’s central bank and the People’s Bank of China eases the exchange of up to 2.2 trillion pesos (about US$3.6 billion) for the next three years. China has signed currency swap deals with several countries and has worked with financial centres to develop international hubs for offshore trading of the currency.
“We want to strengthen our financial cooperation with Chile during this visit, and we have both signed this swap deal,” the premier said during his visit to Chile, the last stop in his four-nation tour of South America, which also included Brazil, Colombia and Peru.
“I hope Chinese-Chilean cooperation can allow for services and guarantees that can firmly support our cooperation with all of Latin America.”
Watch: China to establish currency clearing bank in Chile