In a world bound by shared challenges and evolving aspirations, China and the countries of Latin America and the Caribbean (LAC) are forging a transformative partnership. What began primarily as economic interaction has developed into a comprehensive cooperative partnership rooted in cooperation, mutual respect and long-term progress.

Today, China is LAC's second largest trading partner. As their relationship intensifies, both sides are seeing mutual benefits in economic growth, cultural exchange and infrastructure projects, signaling a shift toward a new global collaboration.

The LAC region, comprising 33 independent countries with a population exceeding 640 million, spans over 20.7 million square km, about 13.8 percent of the world's total land area. Renowned for its abundance of natural resources, the region holds one third of the world's arable land and nearly a quarter of its forests, making it a region rich in economic potential.

In January 2015, the first ministerial meeting of the Forum Between China and the Community of Latin American and Caribbean States in Beijing marked a new chapter in China-LAC relations. The forum established a structured mechanism for cooperation, nurturing a strategic transition toward self-sustained, constructive development with a shared focus on cooperation, growth and mutual benefit.

The partnership between China and LAC envisions a hopeful model of global cooperation—where economic advancement, cultural exchange and sustainable development progress hand in hand.

As these two regions continue investing in each other's futures, they are not only constructing physical infrastructure but also laying the groundwork for a more inclusive and prosperous world.

A pillar of mutual growth 

Over the past two decades, economic ties between China and the LAC region have steadily strengthened, reflecting a robust and growing partnership. In 2008, the Chinese Government published its first policy paper on LAC, signaling its commitment to long-term engagement in the region.

Since then, trade between both sides has surged, growing from $14.9 billion in 2001 to $261.3 billion by 2012, and continuing to expand rapidly.

In 2023, total trade volume between China and LAC had exceeded $489 billion, marking six consecutive years of accelerated growth.

According to the Economic Commission for Latin America and the Caribbean, from 2000 to 2022, the total value of goods traded between China and the region increased 35 times, far outpacing LAC trade with other global regions, which grew only four times during the same period.

China's partnerships with Brazil, Argentina and Mexico have been pivotal in fostering this growth. Its strategic partnership with Brazil dates back to 1993, followed by uplift of ties to a strategic partnership with Venezuela, Mexico, and Argentina in the early 2000s. Free trade agreements (FTAs) with Chile, Peru and Costa Rica further solidified economic ties, with the recent FTA with Nicaragua, which went into force in January of this year, marking China's 21st such agreement globally.

In July 2014, during a visit to the LAC region, Chinese President Xi Jinping introduced the "1+3+6" cooperation framework, focusing on three engines of growth—trade, investment and finance—and six target sectors, including energy resources, infrastructure and agriculture. 

Consequently, Chinese investments have focused on strategic areas such as energy, mining and manufacturing. Between 2003 and 2022, China invested $187.5 billion in the LAC region, as reported by the Inter-American Dialogue, a U.S.-based think tank that focuses on policy analysis, earlier this year.

China's second policy paper on LAC, released in November 2016, further expounded on the "1+3+6" cooperation model, highlighting areas like manufacturing, investment, finance, science and technology, health, space and poverty reduction.

The ongoing momentum was reinforced at the 16th China-LAC Business Summit in Beijing last November. Over 1,000 representatives from LAC nations convened to explore new avenues for bilateral trade and investment, emphasizing both China's role as the region's fastest-growing export market as well as the potential for continued mutual economic benefit.

This intensifying economic partnership is not only reflected in trade figures but also in real-world benefits for both regions. LAC countries have seen substantial growth in their agricultural exports to China—including Mexican avocados, Chilean cherries and Uruguayan beef—enriching the lives of Chinese consumers while creating economic opportunities for LAC producers. In return, Chinese products and technologies, including 5G mobile network technology, have become integral to lifting productivity and modernizing major sectors across the LAC region.

Everyday connections 

China's engagement with LAC countries extends beyond trade and economic investment, substantially improving everyday life across the region. A recent book, Connecting China, Latin America, and the Caribbean: Infrastructure and Everyday Life, published by University of Pittsburgh Press in February, offers insights into how Chinese infrastructure projects are reshaping local experiences.

Based on a study initiated in 2016, the book explores the transformative impact of Chinese-built infrastructure in areas such as connectivity, service improvement and job creation.

Over the past decade, China's emphasis on people-centered development has led to notable infrastructure initiatives. For instance, China Harbour Engineering Co. constructed Jamaica's North-South Highway, reducing travel time between the capital of Kingston and the northern tourist areas from four hours to just one.

In Honduras, the Patuca III Hydroelectric Plant, built by the Power Construction Corp. of China, has an installed capacity of 104 megawatts and generates an average of 336 million kWh of electricity annually, alleviating power shortages and providing reliable power supply to thousands of households.

Tourism is vital to the economy of Antigua and Barbuda, an island nation of over 100,000 residents in the eastern Caribbean Sea, contributing 60 percent of the nation's GDP. Known for its beautiful beaches and diverse wildlife, Antigua and Barbuda has in recent years elevated its tourism infrastructure with a considerable airport expansion. Funded by China and constructed by the China Civil Engineering Construction Corp., the new terminal—opened in early 2015—features modern facilities and has furthered the country's ability to support tourism.

"In terms of the asymmetry of the size, power and resources, China always has exercised full respect and treated us with the type of respect that we have not seen in other relationships," Antigua and Barbuda's Prime Minister Gaston Browne said in an interview with Xinhua News Agency this February, underscoring how mutual respect and trust have strengthened the relationship.

Cultural and educational exchanges have also bolstered ties between China and LAC countries. Since the establishment of the first Confucius Institute in Central America at the University of Costa Rica in 2009, over 44 such institutes have opened across different LAC countries, promoting Chinese language and culture.

Confucius Institutes, named after the ancient Chinese philosopher and educator Confucius (551-479 B.C.), serve as nonprofit public institutions to help people better understand China by teaching the Chinese language and culture at universities overseas.

At the same time, an increasing number of students from the LAC region are attending Chinese universities. These exchanges foster mutual understanding, forming the bedrock of stronger, people-to-people relationships between China and LAC nations.

In 2023, the National Library of El Salvador, built with Chinese assistance, was handed over to local authorities. This landmark now stands as a symbol of the growing cultural ties between China and the area.

"Infrastructure construction is essential in LAC's development, as high logistics costs from inadequate transportation networks hinder trade advantages. Despite abundant natural resources and agricultural products, urbanization has led to serious income disparities and varied public service coverage. Urban development needs support in areas such as housing, transportation, utilities and communication," Shi Yan, a lecturer in the Department of Spanish and Portuguese at Beijing Foreign Studies University, who focused on Latin American politics during her Ph.D. studies, told Beijing Review.

"Chinese companies building public facilities in LAC countries are vital for multi-level development and signify deepening practical cooperation between China and the region," Shi added.

Building a future 

The Belt and Road Initiative (BRI) is a testament to China's commitment to its long-term relationship with LAC. First proposed by President Xi Jinping in 2013, the BRI seeks to boost connectivity along and beyond the ancient Silk Road routes. This initiative has seen substantial engagement in LAC, with 22 countries in the region having signed BRI agreements with China to date.

A key example of this collaboration is the Phoenix Park Industrial Estate in Trinidad and Tobago, which officially opened this January as the first BRI project landing in the Caribbean. Located at Port of Point Lisas, the industrial park aims to support the diversification of the local economy by promoting high-value-added light industries. Offering incentives such as tax breaks and streamlined customs procedures, the park is expected to create thousands of jobs and attract foreign investment, positioning Trinidad and Tobago as a regional industrial hub. Additionally, it is the first park in the Caribbean to achieve full 5G mobile network coverage, providing advanced digital infrastructure that enhances efficiency and connectivity for businesses operating within the estate.

Cooperation has also expanded into LAC's digital economy and green energy sectors. Chinese tech titan Huawei has played a big role in assisting the Mexican Government to establish the region's largest public Wi-Fi network. This project is part of the country's five-year national digital strategy, México Conectado, aimed at bridging the digital divide.

Low-carbon projects have strengthened green industry chain cooperation across the region, pl

aying a decisive role in the fight against climate change. A key example was that of the 19th Pan American Games, held in Santiago, Chile, from October 20 to November 5, 2023, where green transportation took center stage. Chinese-made double-decker electric buses transported many local residents to different sports venues throughout Santiago, infusing some considerable green energy into this major athletic event.

The BRI represents more than just infrastructure investment; it embodies a commitment to social and economic sustainability. The initiative has spurred investments in healthcare, education and clean energy, each playing a part in building a resilient society.

"The joint efforts to advance Belt and Road cooperation have amplified the voice of emerging markets and developing countries in regional and global economic governance. China is the world's largest developing country, while LAC is a region with a high concentration of developing countries. Both sides align on key priorities, including maintaining world peace and stability, promoting multipolarity, democratizing international relations, and advocating for improvements in global governance mechanisms," Liu Ying, a research assistant at the Academy of Contemporary China and World Studies, said in an interview with Beijing Review.

"Brazil will host the G20 [Group of 20] Summit [from November 14 to 16] and Peru will hold the APEC economic leaders' meeting later the same month. These events demonstrate that LAC countries are actively participating in multilateral affairs and global governance, shaping a more diverse international order. Their involvement in regional and global agendas, coupled with the multi-level and multi-field cooperation mechanisms between China and the LAC, has nurtured positive practices for the Global South's joint participation in global governance," Shi continued. "This engagement plays an important, stabilizing role in transforming the international political and economic order, grounded in principles of peace and development." BR

Printed edition title: Shared Aspirations

Copyedited by Elsbeth van Paridon 

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