Interview: China's LatAm policy paper key to developing ties

China's recent Policy Paper on Latin America and the Caribbean is key to developing ties, since it serves as a road map to furthering cooperation, according to a leading Argentine economist and political observer.

The document "marks which path to take in diplomacy, investment and trade, basically in partnership with Latin American economies," said Gustavo Girado, head of the Buenos Aires-based consulting firm Asia & Argentina (A&A).

In November, China presented its second policy paper on the region, building on the original document issued in 2008.

"Ties have progressed immensely, to the point where China is a leading trade partner of nearly all the Spanish -- and Portuguese-speaking economies, including Brazil -- all of Latin America," said Girado.

In the past decade, trade exchange between China and Latin America grew 20-fold to reach 236.5 billion U.S. dollars in 2015, according to the Chinese government, which has free-trade agreements with several regional countries, such as Chile, Peru and Costa Rica.

Biregional ties made more headway in 2016, including on the cultural front, with the Year of China-Latin America Cultural Exchange.

Today, China is the region's second largest trade partner and third largest source of investment, while Latin America is China's seventh biggest trade partner and a leading destination for Chinese foreign investment.

"China is one of the main investors in the region, and China is practically the leading consumer of products that comprise the Latin American economies' basic basket of export goods," added Girado.

"Chinese investment in Latin America fills a void, with infrastructure and technology, which Latin American economies cannot themselves fill," he said.

Girado said his own country is a clear example of that.

"Argentina is a typical case, because with little external financing (from traditional lending sources), it has used a lot of Chinese financing in the past decade and a half to undertake major development and infrastructure works," said Girado.

The policy paper, Girado believes, seeks to promote ties that are "much closer and more cooperative."

"That last word is repeated on many occasions throughout the text -- 'cooperative and comprehensive' -- because it (China) has achieved a comprehensive strategic partnership with several Latin American countries, but not with all," he notes. Enditem