China has announced a comprehensive policy paper aimed at enhancing trade and economic cooperation with nations in Latin America and the Caribbean. The new framework, released in March 2024, outlines plans to engage across various sectors, including technology, infrastructure, finance, manufacturing, and agriculture. This marks the third policy document issued by China on this topic since 2008, indicating a sustained commitment to fostering deeper ties with the region.
The policy reflects China’s perspective on a changing global landscape where the Global South is increasingly influential. The document states, “As a developing country and a member of the Global South, China has always shared a common destiny with the Global South, including Latin America and the Caribbean.” A key focus of this strategy is to promote high-value and technology-intensive exports to the region, while also supporting Chinese investments in Latin American markets.
Focus on Agricultural and Technological Cooperation
Agriculture plays a crucial role in China’s new strategy. The policy outlines plans to enhance customs and inspection mechanisms to boost agricultural imports from Latin America, highlighting food security as an area of “mutual benefit.” Companies from both regions are encouraged to engage more actively in agricultural trade and processing, fostering a partnership that aims to increase food supply and economic stability.
In addition to agriculture, technology and industrial upgrades are emphasized as potential areas of collaboration. The document proposes joint efforts in fields such as artificial intelligence, digital transformation, aerospace, satellite applications, new-energy vehicles, and battery technologies. Furthermore, it mentions collaboration in space activities, including remote sensing and satellite navigation, indicating a broadening of the technology partnership.
Infrastructure Development and Financial Cooperation
Infrastructure development remains a significant pillar of China’s strategy. The policy commits to “needs-based development cooperation” without political conditions, focusing on initiatives such as poverty reduction, climate-related projects, and large-scale construction including ports, railways, highways, energy grids, and telecommunications. This approach aims to bolster economic growth and improve living standards in participating countries.
China also seeks to enhance financial cooperation, promoting stronger business-to-business relationships and increased cross-border e-commerce. The policy encourages the use of local currencies in trade and investment settlements, which could streamline transactions and reduce reliance on foreign currencies.
The framework further outlines broader goals, such as increasing collaboration in education, public health, culture, tourism, sports, and media exchanges. China plans to fund training programs and invite regional officials, students, and technical personnel to participate in educational exchanges and scholarships, fostering a deeper understanding and stronger bonds between the two regions.
China has rapidly ascended to become Latin America’s second-largest trading partner and a key source of investment for public works projects. The announcement of this new policy framework signals Beijing’s intention to solidify and expand its role in the region, with aims to “promote stable industrial and supply chains” while supporting Latin American countries in taking a more prominent role in global economic governance.
This proactive approach is designed to strengthen ties between China and Latin American nations, reflecting a mutual interest in economic collaboration and shared development goals.
