2012 marks new stage in China-LatAm ties

Chinese Premier Wen Jiabao's visit to four Latin American countries and a China-Latin America business summit were two events in 2012 that marked a new stage in Sino-Latin American ties.

In June, Wen visited Brazil, Argentina, Uruguay and Chile and delivered a speech at the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) in Santiago, unveiling a convincing and promising agenda to institutionally consolidate mutually beneficial ties between China and Latin America.

Wen's idea was, in short, that the 21st century marks the beginning of a new period of rapid development in relations between China and the region. The relations show sound momentum of all-dimensional, wide-ranging and multi-tiered growth.

This long-term strategic perspective, part of China's foreign policy for several decades, helps consolidate the political, economic and cultural ties between the peoples without placing political conditions.

The Chinese premier also proposed several concrete measures to deepen strategic cooperation between China and the region.

Among them, Wen suggested to create the China-Latin America and the Caribbean Cooperation Forum to establish a regular dialogue mechanism.

He also proposed to boost trade with ECLAC countries to 400 billion U.S. dollars in the next five years, or double the current amount.

China is not pursuing a trade surplus, Wen said, adding it is willing to import more manufactured and value-added products from the region in addition to raw materials, so as to achieve more balanced and sustainable trade between the two parties.

To strengthen investment and financial cooperation, Wen announced the creation of the China-Latin America and the Caribbean Cooperation Fund, with a Chinese contribution of 5 billion dollars to promote joint investment in manufacturing, high and new technology and sustainable development.

Similarly, the China Development Bank will head a special 10-billion-dollar credit line to promote cooperation in infrastructure, such as railways, highways, ports, power stations, electricity networks, and telecommunication facilities.

On food security, Wen proposed to establish a 500,000-ton emergency food bank for humanitarian purposes. He also said it was important to create an agriculture ministers' forum by 2013 and create a 50 million-dollar fund to support six research centers to strengthen agribusiness and manufacturing, science and technology.

Wen also stressed the need to promote cultural exchanges, communication, sports and tourism between China and Latin America.

According to ECLAC Executive Secretary Alicia Barcena, who recently visited Beijing, Wen's agenda "marks a substantial leap in the form and content in which China has decided to be present in the region."

Wen's message "marks a watershed in the quality of the relationship with Latin America," she added.

The second significant event in the year on China-Latin America ties was the 6th China-Latin America Business Summit held in the Chinese coastal city of Hangzhou in October. More than 1,000 representatives from 30 Latin American and Asian countries attended the event.

The summit's goal was to take advantage of the vast economic opportunities offered by China's adoption of a new development model, which prioritizes domestic consumption instead of investment and exports.

The summit addressed such issues as sustainability and greater value-added investment and trade between China and Latin America.

Participants discussed new opportunities in the global services sector, new collaboration mechanisms in financial services, and the globalization of small and medium-sized companies.

The financial and economic crisis affecting the United States and Europe has brought new strategic opportunities for China and Latin America to strengthen their political, economic and cultural relations.

China is the destination of around 10 percent of Latin American exports and the origin of 15 percent of the region's imports, while two Chinese banks pledged credit lines this year with 12 countries in the region for 60 development projects, totaling more than 8 billion dollars.

The Asian country has become an important trade partner for Argentina, Brazil, Uruguay, Cuba, Venezuela, Peru, Chile, Ecuador, Colombia and Costa Rica.

On the cultural front, thousands of students are attending Confucius Institutes in 14 Latin American countries to learn the Chinese language and Chinese culture.

ECLAC, the institution that actively promotes ties between Latin America and China, believes that now is the right time to take a qualitative leap in the region's relations with the Asian country, as well as with the Asian-Pacific region in general to become strategic partners.

The Chinese premier's proposals during his visit and the agreements reached at the business summit aim to do just that, and should be given priority by Latin American and Caribbean governments.