World trade
New paths in the customs dispute? Why China around Latin America
The hot tall dispute between China and the USA temporarily cooled down a bit. But Beijing has been targeting long alternative trading partners – like Latin America.
After the temporary customs reduction between China and the United States, Beijing has announced that Beijehen are further expanded with the Latin American and Caribbean states (Celac). No matter how the world will change, China will always be a “good friend and partner” of the region, said state and party leader Xi Jinping to open the China-Celac Forum in Beijing.
There are no winners in customs wars, said XI. His country wants to work more together with the increasing block confrontation and protectorism in infrastructure, raw materials and food as well as 5G technology and artificial intelligence with Latin America and the Caribbean.
XI also promised to increase imports from Latin American and Caribbean countries and to instruct China’s companies in the region. Beijing wants to provide 66 billion yuan (around 8.2 billion euros) for the development of the region.
What the customs dispute has to do with the region
Especially since the trade conflict with the United States, China has been trying to promote other countries as a stable trading partner. In the meantime, Beijing and Washington agreed to significantly reduce their mutual tariffs for 90 days. But the distrust between the two sides is great.
The race of the two largest economies in the world can be seen in the Celac countries. The United States is the most important trading partner in the region. China follows behind it. According to Beijing, the trading volume with the region was $ 518.4 billion in 2024 (today around 466.8 billion euros).
What China wants to achieve in Latin America
The People’s Republic is interested in the raw materials in Latin America. From Brazil, China recently increased the purchase of soybeans in order to become less dependent on imports from the USA even in agricultural products. In addition, the countries in Latin America have important raw materials, such as lithium from Chile, which is particularly important in battery production. Countries of the global south are the protagonists for development, said Chile’s President Gabriel Boric.
China also wants to secure access to the Latin America markets and massively invests in infrastructure via his “Neue Seidenstrasse” initiative. According to Chinese information, Beijing launched more than 200 infrastructure projects in the region.
Why the ports in the region are in focus
Peru had received a lot of attention in November when President Dina Boluarte and XI inaugurated the low -water port Chancay. It is operated by China’s state shipping company Cosco.
A major conflict between the USA and China in Latin America is also the Panama Canal. US President Donald Trump claimed that China had control over the important sea trade route because the Hong Kong Corver Hutchison is involved in ports there. Beijing rejects that. A sale of the port division CK Hutchison to the US finance company Blackrock recently called China’s authorities to check the deal.
Panama only sent his ambassador to the Forum after Beijing as highest ranking representatives, while states such as Chile, Brazil and Colombia arrived with great delegations.
dpa
Source: Stern
