In hard times, LatAm turns to China for boost
Chinese President Xi Jinping wraps up his visit to three Latin American countries, Ecuador, Peru and Chile, Wednesday, during which he also attended the 24th AsiaPacific Economic Cooperation ( APEC) Economic Leaders’ Meeting in Lima, Peru. This is his third visit to Latin America since assuming office, which shows that Beijing is attaching increasing importance to the continent. For the moment, Latin America is facing major challenges. Xi’s tour can thus offer timely help while boosting the continent’s confidence during hard times.
Latin America is confronting largescale economic, political and social turmoil, so it is in urgent need of support from the outside world. Under the huge pressure of a slowing economy, the GDP growth rate of several major nations in the region including Brazil, Argentina, Mexico and Venezuela have hit the lowest level in the past few years. The three pillars of the Brazilian economy, export, investment and consumption, are declining at the same time. The economic growth of Peru and Chile, which once were highlights of regional economic development, have also dropped from 4 percent to about 2 percent.
Apart from the risk of economic recession, changes in the presidencies have taken place in Brazil and Argentina. Political struggles in Venezuela are getting worse and the governments of Chile and Mexico are facing mounting stress in ruling their countries. The new administration of Peru is suffering from low support rates. Disputes within governments in Latin America as well as protests among their people are emerging everywhere.
In the meantime, the global international situation is facing immense uncertainty. The prices of bulk commodities are fluctuating. The US is witnessing slowing recovery. The UK divorced the EU. All that made Latin America’s economy, which has long been dependent on international markets, hang in the balance. To the north, the election of isolationist Donald Trump brings unknown risks.
Against such a backdrop, the highspeed development of China- Latin America ties has become crucially important. Bilateral trade volume between the two sides increased 21- fold from $ 12.6 billion in 2000 to $ 263.5 billion in 2014. For the moment, China is Latin America’s second- largest trading partner as well as the largest partner and the largest export market for Brazil, Peru and Chile. When it comes to cultural and people- to- people exchanges, the first Confucius Institute in the continent was founded in Mexico in 2006. So far, there are a total of 35 such institutes and 10 Confucius Schools in 15 countries in the region.
After years of accumulation, Sino- Latin American ties in political, economic and people- to- people exchanges are now ready to reach the next level.
The direction of China- Latin America cooperation has already been confirmed. Beijing will connect its China Dream with the Latin American Dream. Both countries will pursue economic and social prosperity, and enhancing bilateral political collaboration. The two will also connect and combine their development strategies in order to form a community of common interest. Promoting the upgrade of economic and trade cooperation will come next. Both sides will start joint projects in trade, investment and finance instead of simply exchanging raw materials for manufactured products. Future cooperation will be expanded to include energy, resources, agriculture, technical innovation, infrastructure, finance, telecommunications and more. Moreover, both sides will make their cooperation sustainable to realize economic growth and make sure efforts can improve ordinary people’s livelihood.
Globalization, which is aimed at mutual benefit and win- win cooperation, has long been a consensus goal, especially among Latin American countries, which are dreaming of prosperity and development. Facing a disadvantageous situation both at home and abroad, promoting relations with China has also turned into a general consensus among them. Xi’s visit will hence without question bring Latin America a positive signal for their future development.