China-CELAC Forum fosters stronger ties between Beijing and Latin American nations. / AP
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China is moving to bolster its alliances with other nations as a counterbalance to President Donald Trump’s trade war, presenting a united front with Latin American leaders at an event on Tuesday in Beijing.
Chinese leaders have positioned the world’s second-largest economy as a dependable trade and development partner, in contrast to the uncertainty and instability stemming from Trump’s tariff hikes and other policies.
On Monday, Beijing and Washington announced a breakthrough on tariffs following weekend talks in Geneva, Switzerland, where both sides agreed to reduce steep tariffs for 90 days to allow room for negotiations.
Having taken steps to ease tensions with the US, Chinese President Xi Jinping stated that China stands ready to “join hands” with Latin American countries “in the face of seething undercurrents of pure political and bloc confrontation and the surging tide of unilateralism and protectionism.”
“There are no winners in tariff wars or trade wars,” Xi said, repeating a phrase frequently used by China when referencing Trump’s policies.
He was addressing the China-CELAC Forum — the Community of Latin American and Caribbean States — which was established in 2015. The presidents of Brazil, Chile and Colombia were among the officials from the region in attendance.
Xi unveiled five initiatives focusing on political dialogue, economic development, cultural and academic exchanges, and global security, all aimed at strengthening ties between China and Latin American nations.
He pledged to increase imports from the region and to encourage Chinese companies to expand their investments there. Xi also announced a new 66 billion yuan (approximately $9.2 billion) credit line to support financing across Latin America and the Caribbean.
China also aims to deepen cooperation in areas such as clean energy, 5G telecommunications, the digital economy, artificial intelligence, and global security.
Latin American states join BRI
Trade between China and the region has been rising rapidly, surpassing $500 billion for the first time last year.
Much of this growth is driven by increased Chinese imports of agricultural goods such as soybeans and beef, as well as energy resources including crude oil, iron ore and critical minerals.
Beijing’s investments in the region through Xi’s Belt and Road Initiative (BRI) have included the installation of 5G networks and the construction of ports and hydropower plants.
Colombian President Gustavo Petro announced on Monday that his country would formally join the BRI — signalling confidence in the initiative after several Chinese projects in Latin America encountered difficulties in recent months.
In February, Panama became the first Latin American country to withdraw from the initiative under pressure from the US. Earlier this month, Chinese electric vehicle manufacturer BYD and stainless steel producer Tsingshan revealed they were abandoning plans to build lithium cathode plants in Chile due to declining lithium prices.
Among other commitments, Beijing plans to invite 300 members of Latin American political parties to China annually for the next three years and will provide 3,500 government scholarships alongside various other forms of exchange.
Five Latin American countries will receive visa exemptions for travel to China, with more to be announced, Xi said. It was not immediately clear which countries would benefit from the visa exemption.
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