Investment in Latin America benefits all

Source:Global Times Published: 2015-5-19 0:43:01

Latin America, a region tens of thousands of kilometers away from China, impresses Chinese people with more than its samba or coffee. It is one part of the world that is instructive on how China gets along with its faraway partners.

Premier Li Keqiang embarked on a Latin American tour this week that includes Brazil, Colombia, Peru and Chile. This is the third time that a member of the current Chinese leadership landed on this soil, following Chinese President Xi Jinping's visits to the region to promote cooperation in 2013 and 2014.

China-Latin America cooperation is on a fast track to full bloom. Trade and investment deals worth tens of billions of dollars are expected to be signed during Li's tour. A proposed cross-Andes railway linking Brazil's Atlantic coast to Peru's Pacific coast will also be under discussion.

Complementary goals set the cornerstone for bilateral cooperation. In the past few years, China's demand for bulk commodities to fuel its rapidly developing economy provided a strong stimulus for its economic relations with Latin America, an area rich in raw materials and natural resources.

China's speedy development helped boost the Latin American economy. For example, Brazil is now growing soybean crops in remote areas in its center-west region for export to China. Peru has bet heavily on China's investment in copper mines to revitalize its economy, which depends on mineral exports.

Latin America's basic infrastructure is not complete, and China can provide abundant know-how.

Given a slowdown at home, there has been a weakening demand for commodities in China, and trade between China and Latin America only witnessed a moderate increase of just 0.79 percent in 2014.

It is under such circumstances that the top priority of Li's Latin American tour this time is to take new measures to expand cooperation on resources and investment.

An era of relatively slower growth of the Chinese economy is called the "new normal" by Chinese leaders.

But China's investment to Latin America will continue. In January, President Xi pledged $250 billion in investment in Latin America over the next decade, highlighting China's long-term vision and commitment to mutual benefits.

China's activities in Latin America, a region once considered the backyard of the US, has raised geopolitical concerns from some Western observers. But the ties between China and Latin America are mainly based on economic interests and serve as the driver for regional development. Engaging China multilaterally in the region will benefit all stakeholders.



Posted in: Editorial

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