International Leaders' Meeting Reinforces Multilateral Collaboration in the Face of Global Trade Diffriculties (China-CELAC summit)
The China-CELAC Forum, established in 2014, continues to serve as China's primary multilateral platform for engaging Latin America and the Caribbean. The focus remains on expanding economic ties, trade, and cooperation in advanced technology sectors.
At the fourth ministerial summit between CELAC and China, which took place earlier this month in Beijing, Chinese President Xi Jinping announced a CNY 66 billion (US$9.15 billion) credit line to support development in CELAC countries. This commitment underscores China's economic focus and willingness to finance development projects.
President Xi's speech included a call for expanded cooperation on clean energy, artificial intelligence, and the digital economy. In response, Chinese companies are actively investing in renewable energy projects in Latin America, such as wind turbine production in Brazil by the company Goldwind.
The China-CELAC Forum emphasizes high-tech sectors, port development, and digital and financial infrastructure as priorities. The 2021 joint CELAC-China Action Plan offers a regional credit line of US$9 billion for infrastructure, poverty reduction, and digital transformation.
The Forum operates through various mechanisms, including ministerial meetings, coordination meetings, and dialogues between China and CELAC foreign ministers. It also hosts specialized subforums dedicated to fields such as scientific and technological innovation, infrastructure cooperation, and business summits.
Notable attendees at the summit included Colombia's Gustavo Petro, Chile's Boric, and Brazil's Luiz Inácio Lula da Silva. During the event, Brazil issued a joint statement with China on the margins of the summit, agreeing to cooperate on projects related to the environment, energy transition, and science and technology, among other areas. Companies from China have expressed their intention to invest approximately US$4.5 billion in various sectors of the Brazilian economy.
In addition, Colombia will become the 23rd CELAC country to sign up for China's Belt and Road Initiative (BRI). Nicaragua, which resumed diplomatic relations with China in 2021, signed four agreements with Chinese companies on the margins of the summit, including a deal with Yutong on electric vehicles, and hydroelectric and mining deals were also floated.
The trade conflict between the United States and China has placed Latin America in a challenging position. However, the China-CELAC Forum continues to emphasize multilateralism, international cooperation, and "strengthening all pillars of the climate change mechanism". The Forum is committed to promoting cooperation in clean energy, AI, and the digital economy, as well as enhancing infrastructure and strengthening economic and trade relations.
While China seems committed to continued engagement with the region, whether China's billions materialize or not will depend on multiple factors, including China's own economic prospects, the extent to which bankable projects are available to Chinese companies, and the interests of individual countries and localities. The Chile-China Business Forum, which took place in Beijing earlier this month, indicated a willingness from both countries to collaborate on solutions to challenges facing the energy transition and the digital transformation, among other issues.
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