“It doesn’t matter how the world changes, China will always support the countries of Latin America and the Caribbean as a good friend and a good partner,” XI said during the inauguration of the forum that It was attended by the presidents of Colombia (Gustavo Petro), Brazil (Luis Inacio Lula da Silva) and Chile (Gabriel Boric).
His comments arrived a day after the US made a series of reductions to tariffs imposed against China for up to 90 days, leaving behind the levels that exceeded 100% overload. China, on the other hand, agreed to reduce the tariff load against the US in the same proportion; Waiting for the evaluations and meetings that continue to be carried out in the midst of commercial tensions between both economic powers. It is expected that in the next few days a high -level meeting between Donald Trump and Xi Jinping, the first since the US president returned to the Oval office.
Xi Jinping is the president of China (Photo: EFE)
Promises, commitments and new allies
During the Chinese Summit – CELAC, XI announced a credit line for the countries of Latin America and the Caribbean up to 66 billion yuan (US $ 9.2 billion) with the objective of supporting the development of the countries of the region. The Chinese president also promised an increase in imports of products that go beyond copper, oil or soy; Three of the inputs that acquire the most from nations such as Peru, Brazil and Argentina.
In a context in which access to capital remains limited After the aid granted by various organisms during the pandemic, The new credit line granted by China will be useful for many countries in the regionaccording to the analysts consulted by the agency Reuters. However, the financing granted by China will not be useful for the various indebted Latin American nations to cover other debts that carry in dollars, since the amounts have been committed in yuan.
It is important to emphasize, however, that the credit line of almost US $ 10,000 million is below what China offered Latin American countries 10 years agoduring the Chinese inaugural forum – CELAC of 2015. The main reason for this decrease is given are the different economic circumstances in which the Asian giant is today: While 10 years ago it stood out for a ‘boom’ of incomparable growth with any other power, today the Chinese economy is slowing down (it maintains growth levels, but at a lower pace).
But the granting of the credit line was not necessarily the most important point of the Chinese forum agenda – CELAC. “China was restless for how this forum was going to develop, in particular, after the recent movements that Washington had in Central America”he said to Commerce Marco Carrasco, economic development specialist at Asia-Pacific and China. “The last precedent was what happened with Panama, which after the US pressures decided to leave the Strip and Route initiative and cancel investments that were already ongoing “the expert added.
The new Silk Route
What is the ‘Strip and Route’ initiative?
The Strip and routebetter known as the new silk route, is a Infrastructure Development Strategy promoted by the People’s Republic of China (RPC) since 2013 (known in English as Belt and Road Initiative). For the Chinese government, this initiative, which should end in 2049 (Centenary Year of the RPC), points to “Improve regional connectivity and embrace a brighter future”The recent exit of Panama from this initiative after Donald Trump’s threats was a hard blow to China’s efforts to sit roots in Latin America, and opened the door for other countries in the region to feel pressured to choose between their investments of Asian origin or those of US origin.
But what happened with Panama motivated Beijing to look for new partners. This week, XI managed to sign an agreement with Gustavo Petro, president of Colombia, to add for the first time to the new silk route, despite exporting six times more products to the US.
“I think this situation is being very well used by China. Meanwhile, The United States, which allegedly sought to reduce Chinese influence on a global scale, is doing the opposite. More than advancing, it seems that it will be sabotageto”, Added Carlos Aquino, director of the Asian Studies Center of the San Marcos University.
The Chinese president, Xi Jinping (I), shakes the hand of the Colombian president, Gustavo Petro (D), in a file photograph. EFE/EPA/Andrés Martínez Casares
Challenges on the road
The greatest growth of Chinese investments in Latin America in the face of Americans in recent decades is undeniable. Alonso Macedo, Junior economist of the Peruvian Institute of Economics (IPE), remarked this newspaper that In 2000, for example, the United States looked as the main commercial partner of the entire region. But until the closing of 2024, China had already become the main partner of the third part of Latin American countriesamong which Brazil, Argentina, Chile and Peru stand out.
“As he grows as an economy, China has been able to integrate these countries into their chain. China is, in fact, extremely important for Peru. It consumes 70% of the copper concentrate that we export and is, in general, our main export destination, ”said the specialist.” The rulers from all Latin American countries are with the eye on China And in being able to access its economy more and more, which is growing by leaps and bounds. Chinese investment becomes increasingly important, and China has managed to invest in large projects that also chart them with its logistics chain“He said.
In this context, and in the midst of global leadership competition between the two global powers, The region faces the great challenge of avoiding being in the midst of any conflict that arises between China and the US in the short, medium and long term. Here he highlighted, for example, that in a recent meeting between Peruvian Chancellor, Elmer Schialer, and US Secretary of Defense, Pete Hegseth, The Peruvian delegation was suggested to be careful with Chinaemphasizing that it is not a good partner and that it represents a threat to peace in the region.
News published by the United States Department of Defense: Defense Minister Walter Astudillo, and Foreign Minister Elmer Schialer attended the Pentagon to hold a protocol meeting of cooperation between the two nations.
“Implicitly is already putting us to choose. They are two elephant fights; If we put ourselves in the middle we end up crushed”, Considered Aquino.
For Macedo, in the midst of global tensions it will be key that the rulers know how to manage properly. “South America in particular has the challenge of knowing how to navigate these pressures, and for that more energetic leadership and good diplomacy are needed. We must consider that facing the presidential elections of 2026 here in Peru”He stressed.
Despite the challenges present and questions from partners such as the US, Macedo emphasized that the experience in Peru with Chinese investments has shown that profits have not been unilaterally given. “Chinese investments have been welcome in infrastructure, construction, public works and mining, and I think they have generally had a positive impact for the country. However, obviously everything is part of its geopolitical influence strategy”, The economist pointed out.
