About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (December 14, 2021)

handle is hein.crs/govehvm0001 and id is 1 raw text is: Congressional Research Service Informing heleg iltive d ba e s'no 1914 0 Updated December 14, 2021 China's Engagement with Latin America and the Caribbean As the People's Republic of China (PRC) has increased its engagement with Latin America and the Caribbean (LAC) over the past 20 years, U.S. policymakers have raised questions regarding potential implications for U.S. interests in the region. China's engagement with the region has grown significantly since 2001, particularly in terms of diplomatic and economic ties. This growth reflects China's global soft power efforts and influence operations worldwide. A succession of Chinese leaders and other officials have visited the region to court governments. In turn, regional leaders and officials have frequently visited China. The PRC has signed various bilateral partnership agreements with countries throughout LAC, including comprehensive strategic partnerships with Argentina, Brazil, Chile, Ecuador, Mexico, Peru, and Venezuela. Diplomacy Beijing's diplomatic overtures in LAC underpin China's economic activities and help institutionalize China's engagement in the region and garner support in international fora. Some analysts argue that China's activities in LAC reflect a global strategy to reduce U.S. dominance, although the activities do not aim to challenge the United States directly or militarily. China's diplomatic efforts include being an observer at the Organization of American States, a member of the Inter-American Development Bank (IDB) and the Caribbean Development Bank, and a participant in the Asia Pacific Economic Cooperation forum. China has sold Coronavirus Disease 2019 vaccines and has provided medical assistance and loans to pay for vaccines to about a dozen countries in LAC. China and the United States are the leading suppliers of vaccines to the region, according to Wilson Center data. Since 2015, PRC President Xi Jinping has participated in three summits with leaders and foreign ministers of the Community of Latin American and Caribbean States (CELAC), a region-wide organization that excludes the United States and Canada. Xi addressed the Third China- CELAC Ministerial in December 2021 via video message. The meetings have promulgated cooperation plans covering politics, security, trade, investment, finance, infrastructure, energy, resources, industry, agriculture, science, and people-to-people exchanges. At the 2018 summit, China invited countries in LAC to participate in its Belt and Road Initiative (BRI), which focuses on PRC- backed infrastructure development around the world. At least 19 countries in LAC participate in the BRI. In 2016, the PRC government released its second policy paper on LAC. The paper stated China seeks to strengthen cooperation on the basis of equality and mutual benefit in several key areas, including exchanges and dialogues, trade and investment, agriculture, energy, infrastructure, manufacturing, and technological innovation. It noted that China will actively carry out military exchanges and cooperation with countries in LAC but emphasizes that China does not target or exclude any third party. Another of Beijing's apparent goals in LAC is to isolate Taiwan by attempting to lure away Latin American and Caribbean countries that maintain diplomatic relations with Taiwan, also known as the Republic of China. Currently, 8 countries in LAC (out of 14 countries worldwide, including the Vatican) recognize Taiwan; the remaining 25 countries recognize the PRC. Panama, the Dominican Republic, and El Salvador switched recognition to the PRC in 2017-2018, and Nicaragua switched on December 9, 2021. In Honduras, President-elect Xiamara Castro pledged to establish relations with the PRC but her transition team asserts that her government will maintain relations with Taiwan. Econorm Relations China's economic goals in LAC include securing access to raw materials (such as oil, ores, and minerals) and agricultural goods (especially soybeans); establishing new markets for Chinese goods, including high-value-added products; and partnering with LAC firms to access and develop technology. China also has sought investment opportunities in Latin America for its infrastructure firms. Total China-LAC trade increased from almost $18 billion in 2002 to almost $316 billion in 2019. In 2020, despite the decline in world trade due to the pandemic, China's total trade with the region dipped only slightly, to $315 billion. In 2020, China's imports from LAC amounted to $165 billion, consisting primarily of natural resources, including ores (35%), soybeans (17%), mineral fuels (12%), meat (7%), and copper (6%). China's exports to the region in 2020 amounted to $150 billion, with major exports including electrical machinery and equipment (23%), machinery and mechanical appliances (16%), and motor vehicles and parts (6%). China has become the top trading partner of Brazil, Chile, Peru, and Uruguay and the second- largest trading partner for many other countries. China has free-trade agreements with Chile, Costa Rica, and Peru. According to the China Global Investment Tracker database maintained by the American Enterprise Institute (https://www.aei.org/china-global-investment-tracker/), which tracks transactions of $100 million or more, China's investments in LAC from 2005 to mid-2021 amounted to $133 billion, with Brazil accounting for $61 billion and Peru $25 billion. Energy projects accounted for 60% of investments; metals/mining accounted for 25%. The database also shows China's construction projects in LAC from 2005 to mid-2021 were valued at $63 billion, with

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Already a HeinOnline Subscriber?

Log In

profiles profiles most