Xi Jinping tells Latin American-Caribbean nations China will take ties to ‘new era’ as influence concerns West

In video address to CELAC, Xi says world ‘is in a new period of turbulence and transformation’ and challenges need solidarity and closer cooperation
With the current trajectory of growth in trade, China could become the region’s top trading partner as early as 2035

Americas and the Caribbean

Hayley Wong

Published: 3:00pm, 25 Jan 2023

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Chinese President Xi Jinping has signalled Beijing will level up ties with Latin American and Caribbean (LAC) countries in an address to leaders in the region, an area where Chinese influence is already mounting.

During the Community of Latin American and Caribbean States (CELAC) Summit on Tuesday, Xi said China had been working to take the China-LAC relationship into a “new era”.

This year, the annual summit is being held in Argentina’s capital, Buenos Aires.

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Xi’s video address to the conference said China “always supports” the regional integration between Latin America and the Caribbean, and was ready to make progress with those countries.

Over the past two decades, China has drastically expanded trade, investment and aid in the region as it enhances not only economic but also political and security ties with the members.

“Latin American and Caribbean countries are important members of the developing world,” China’s president said. “We highly value our relations with CELAC, and take CELAC as our key partner in enhancing solidarity among developing countries and furthering South-South cooperation.”

Xi also noted that the world “is in a new period of turbulence and transformation” and challenges could only be overcome “through greater solidarity and closer cooperation”.

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Beijing has been stepping up its influence in the Western Hemisphere through infrastructure investment, Covid-19 aid and military assistance.

Argentina, Brazil and Venezuela are among LAC countries with the closest economic and security ties with China, taking part in the Belt and Road Initiative – the largest development project under China’s global infrastructure development strategy – with 17 other countries in the region.

During the pandemic, Latin America was the biggest recipient per capita of Chinese Covid-19 vaccines, benefiting from Beijing’s vaccine diplomacy.

With the current trajectory of growth in trade, China could become the region’s top trading partner as early as 2035.

From 2000 to 2020, China’s trade volume with Latin America and the Caribbean increased 26-fold to US$310 billion, second to the United States as the region’s most important trading partner.

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The trade volume is expected to more than double to exceed US$700 million in 2035, surpassing the US, according to a report on the World Economic Forum website.

Beijing has invested in strategic technologies, embedding itself in sensitive 5G networks and other infrastructure. However, the strong Chinese influence in the region has raised concern among Western governments, particularly the US, with lawmakers calling for development plans to counteract it.

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The European Union is also attempting to push back against Chinese influence in Latin America and step up its economic and technological cooperation, including making sustainable energy a priority.

In keeping with their strong ties with Beijing, most of the LAC nations recognise China’s claim on Taiwan.