New Era of China-Latin America Relations

Promoting Strategic Cooperation

Since 1993 China has steadily established strategic cooperative partnerships with nine Latin American nations: Brazil, Mexico, Argentina, Venezuela, Peru, Chile, Ecuador, Costa Rica, and Uruguay. Since entering the new century, China has elevated its relations with Brazil, Mexico, Argentina, Venezuela, and Peru to that of “comprehensive strategic cooperative partnership.”

Chinese President Xi Jinping meets Peruvian President Pedro Pablo Kuczynski in Lima on November 21, 2016.

During President Xi’s latest visit, China signed the Joint Announcement on the Establishment of a Comprehensive Strategic Partnership respectively with Ecuador and Chile. Seven countries among the nine former partnerships have thus been promoted to the level of comprehensive strategic cooperative partnership.

China and Peru upgraded their strategic partnership of 2008 to a comprehensive strategic partnership in 2013. During his stay in Lima, President Xi and his Peruvian counterpart Pedro Pablo Kuczynski announced the 2016-2021 Joint Action Initiative, further deepening bilateral relations. So far, China has six strategic cooperative partners in South America, initiatively forming a new landscape of China-Latin America ties. President Xi’s three visits in the space of four years highlights the great importance the Chinese government attaches to Latin America, and the growing demand for strategic cooperation between the two sides.

Upgrading FTAs to Bolster Growth

As of 2015, China had signed free trade agreements (FTAs) with three Latin American countries: Chile in 2005, Peru in 2009, and Costa Rica in 2010. Since then, this bilateral trading has traveled express, with China-Chile bilateral trade volumes increasing five-fold in the 10 years since their FTA came into effect. China-Peru trade volumes also doubled during the six years since their FTA was signed. However, these two FTAs do not cover all commodities, investments, and services.

President Xi and leaders from Peru and Chile have accordingly launched negotiations on the upgrading of the FTA, with the aim of accelerating bilateral trade growth and invigorating potential economic and commercial cooperation.

Advancing Pragmatic Economic Cooperation

A total of 40 or more cooperative agreements and program contracts were signed during President Xi’s visits to Ecuador, Peru, and Chile, covering the diverse areas of mining, energy, manufacturing, agriculture, fishing, communication, and infrastructure.

All these achievements will boost pragmatic economic and trade cooperation, bolster confidence in Latin America’s economy, and promote China-Latin America relations, thereby achieving a win-win situation of mutual development. “Made in China,” “China’s Engineering,” and “China’s Speed” will enable all Latin Americans to feel, experience and, participate in the development of their native countries through elevated cooperation with China.