Initiative has been a watershed moment for ties, ushering in significant development and growth opportunities
Tango is the emblematic dance of Argentina. (PHOTO / XINHUA)
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The Belt and Road Initiative, or BRI, has marked a significant turning point in the relationship between China and Latin America, ushering in a bonanza of development and growth that continues to strengthen ties between the two sides.
Panama’s entry into the BRI in 2017 was a watershed moment for Latin America, kick-starting a wave of interest from other nations. In January last year, Nicaragua followed suit, and in December 2021, Cuba and China signed a cooperation plan to further promote the BRI.
These strategic collaborations have propelled China-Latin America relations into a new era, characterized by equality, mutual benefit, innovation, openness, and shared prosperity.
As of now, 21 countries in Latin America have joined the BRI, with China emerging as the region’s second-largest trading partner for 10 consecutive years. The initiative’s fundamental objective of fostering international trade and investment has fueled exponential growth, with bilateral trade between China and Latin America surpassing the $300 billion milestone in 2020.
The Iguazu Falls, at the border of Argentina and Brazil, is one of the must-see tourist destinations in South America. In 1984, UNESCO added the Iguazu National Park to the World Heritage list. (DAVID ZHAO / FOR CHINA DAILY)
Despite the challenges posed by the COVID-19 pandemic, China’s trade with Latin American countries surged to a record high of $450 billion in 2021, a remarkable 41 percent year-on-year increase.
This achievement is a testament to the resilience and adaptability of the partnership, even in times of geopolitical conflicts and economic downturns, said Zhou Zhiwei, a senior research fellow at the Institute of Latin American Studies at the Chinese Academy of Social Sciences.
China’s trade with Latin America and the Caribbean grew 26-fold between 2000 and 2020. Last year was also a very productive year as cooperation was strengthened under the BRI, setting the stage for further collaboration in trade, infrastructure, and other fields, Zhou said.
In February 2022, attention was drawn to closer China-Latin America ties when Argentine President Alberto Fernandez traveled to Beijing for the opening of the Winter Olympic Games and to mark his country’s official entry into the BRI.
The move — coming the same year that the two countries celebrated the 50th anniversary of diplomatic ties — would pave the way for collaboration in trade, infrastructure, anti-pandemic cooperation, green development, and the digital economy, as well as take the diplomatic and political relationship to new heights, said Azhar Azam, a market and business analyst.
Sabino Vaca Narvaja, Argentine ambassador to China, said that China represents Argentina’s second-largest trading partner and “is one of the main investors not only in the country but also in the whole region”.
The Obelisk is lit up in red to celebrate the Chinese New Year in Buenos Aires, Argentina, on Jan 22. (PHOTO / XINHUA)
In 2017, with Panama’s announcement of joining the BRI, it incorporated Latin America and the Caribbean region, as a stretch of the 21st Century Maritime Silk Road, “and in that year it became the most important infrastructure plan of global cooperation”, the ambassador said.
“In Latin America, most of our countries are very complementary with China, and this translates into the relationship that our organization of the Community of Latin American and Caribbean States is also having, which has invited China to participate, with most of our countries having signed to join the BRI,” he said.
Infrastructure development lies at the heart of the BRI, and China’s involvement has been instrumental in transforming Latin America’s connectivity landscape.
In Chile in 2021, China Railway Construction Corporation Limited (CRCC), in a historic public-private partnership agreement, bagged the contract for upgrading and maintaining a 195-kilometer stretch of Route 5 from Chillan to Talca, a city about 255 km south of the capital Santiago.
At the time, this was Chile’s largest infrastructure project and the first public-private partnership project awarded to a Chinese company.
The project includes the operation and maintenance of the existing highway section, expansion of 30 km of highway, design and construction of a 54-km ring road, and building of 13 electronic toll collection systems.
Cherries are a significant export for Chile, with 70 to 80 percent of them heading to China. Shipping cherries from Chile to China via sea transport takes over 20 days. Ensuring timely delivery of cherries picked from orchards to refrigeration centers at the port is a crucial concern for growers. That is where the section of Route 5 comes into play.
A new energy light rail train made in Tangshan, Hebei province, by CRRC for Argentina, as seen on June 6. (PHOTO / XINHUA)
By September 2022, two main toll stations on the section had been completed and put into operation, and the electronic toll collection system was officially launched. As a result, travel time on the section of Route 5 has been reduced by about 30 minutes, with a 17 percent year-on-year decrease in traffic congestion, the company told China Daily.
China and Latin America have made great progress in collaboration in infrastructure and agriculture and there is still huge potential to tap in technological cooperation, including new energy, artificial intelligence, and electric vehicles, Zhou at CASS said.
Beyond physical infrastructure, the BRI has also sparked significant cultural exchange and understanding. Exhibitions like the Terracotta Warriors showcased in Colombia in 2006 have kindled interest in Chinese culture among local residents.
Strengthening cultural exchanges and mutual understanding is a crucial aspect of the China-Latin America relationship, said former Colombian ambassador to China Luis Diego Monsalve.
While the Terracotta Warriors touring Colombia sparked curiosity about China, the profound influence of Gabriel Garcia Marquez’s literature, particularly One Hundred Years of Solitude, resonates deeply with Chinese readers, further bridging the cultural divide, he added.
Education exchange has also flourished under the BRI, with 44 Confucius Institutes and 12 Confucius Classrooms established across Latin America. Moreover, the first Chinese cultural center in Mexico City stands as a symbol of the enduring partnership, promoting artistic expression and appreciation.
Green cooperation has seen remarkable progress, as exemplified by Argentina’s Cauchari Solar Park, built with Chinese investment and technological assistance. The facility has not only provided clean energy to thousands of families but also generated significant socioeconomic benefits for the region.
Visitors learn about Brazilian coffee at a consumer products expo in Haikou, Hainan province, on April 14. (PHOTO / XINHUA)
The solar park is one of the six solar farms built in Argentina by PowerChina, the largest renewable energy contractor in the country, with 12 solar, wind, and hydroelectric energy projects completed and 10 more projects under construction.
Tu Shuiping, head of PowerChina’s Argentine subsidiary, said there is still “a lot of potential”.
“I believe in the future, Argentina will become one of our most important markets,” Tu said.
Argentina is the 21st nation in Latin America to formally join the China-led initiative and the first to do so among the top three regional economies, which also includes Brazil and Mexico.
Brazil is also one of the countries in the region that has its trade performance with China hitting new highs, with bilateral trade reaching $135 billion in 2021, the fourth consecutive record-breaking year.
Although Brazil has not yet formally joined the BRI, nearly half of the Brazilians believe it has brought benefits to countries participating in the initiative and the international community as well, according to a poll released in April, days before Brazilian President Luiz Inacio Lula da Silva made a state visit to China and secured a series of cooperation agreements.
BRI projects have also played a major role in further fortifying China-Latin America ties, said Zhou. Countries like Brazil, Mexico, and Colombia that have not yet signed a memorandum of understanding for joining the BRI may consider accelerating their pace in taking the opportunity, Zhou added.
The future is promising, observers said.
According to an article published in the World Economic Forum, Latin America-China trade is expected to exceed $700 billion by 2035, more than twice as much as in 2020. China will approach — and could even surpass — the United States as Latin America’s top trading partner.
In 2000, Chinese participation accounted for less than 2 percent of Latin America’s total trade. In 2035, it could reach 25 percent, the article said.
