Narayan AmmachchiChina has stated that it cannot grow unless countries in Latin America and the Caribbean grow, indicating how interested it is in expanding trade relations with countries in the US backyard.
“The development of China cannot be possible without the development of other developing countries, including countries in Latin America and the Caribbean,” said China’s Foreign Ministry in a policy document released last week.
Analysts say China is taking advantage of U.S. disengagement, because the policy document comes as U.S. President-elect Donald Trump vowed to renegotiate the North American Free Trade Agreement (NAFTA) and build a wall on the US-Mexico border.
Latin America has long been a major investment destination for Chinese government and companies. Last year, China surpassed the US to become the continent’s largest foreign investor, staking a staggering $21.45 billion in a range of trade deals across the region.
From raw materials to agriculture goods, from high technology to finance, China has wide-ranging business interests in Latin America. More than anything else, China has lent billions of dollars to several Latin American countries.
In its policy document, China says it is “actively promoting a socialist market economy and socialist democracy”. To strike a chord with regional countries, it is offering to create jobs, respect local practices, and provide economic assistance without any conditions.
For example, the Asian country said it is ready to purchase energy and other resources in Latin American currencies in order to reduce the impact of external economic and financial risks.
In his recent visit to South America, President Xi Jinping signed more than 40 bilateral deals, covering a wide range of areas including trade, finance, energy, infrastructure, agriculture, and cultural exchanges, according to Chinese media.
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