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1 1 (April 11, 2019)

handle is hein.crs/govzhb0001 and id is 1 raw text is: Congressional Research Service Informing the legislative debate since 1914 S Updated April 11, 2019 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 over nearly 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 increasing global soft power efforts worldwide. A succession of Chinese leaders and other officials have visited the region to court governments. In turn, regional leaders and officials have been frequent visitors to China. The PRC has signed a variety of bilateral partnership agreements with several countries in the region, including strategic partnerships with Argentina, Brazil, Chile, Costa Rica, Ecuador, Mexico, Peru, Uruguay and Venezuela. Diplomacy Beijing's diplomatic overtures in Latin America underpin China's economic activities and help it to institutionalize its engagement in the region and garner support in international fora. Some analysts argue that China's activities in the region reflect a global strategy to reduce U.S. dominance, although they 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 and the Caribbean Development Bank, and an active participant in the Asia Pacific Economic Cooperation forum. PRC President Xi Jinping participated in a January 2015 forum in Beijing 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. At the forum, China and CELAC countries agreed to a five-year cooperation plan covering politics, security, trade, investment, finance, infrastructure, energy, resources, industry, agriculture, science, and people-to-people exchanges. At a second China-CELAC ministerial held in January 2018, both sides agreed to an updated cooperation plan extending through 2021. China also invited Latin American countries to participate in its Belt and Road Initiative (BRI), which is focused on infrastructure development in various regions around the world. Currently 16 Latin American and Caribbean countries are participating in the BRI. A 2016 PRC government policy paper on Latin America and the Caribbean stated that 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. The paper states that China will actively carry out military exchanges and cooperation with Latin American and Caribbean countries but also emphasizes that China does not target or exclude any third party. Another apparent goal of Beijing in the region is to isolate Taiwan by attempting to lure away Latin American and Caribbean countries that still maintain diplomatic relations with Taiwan, also known as the Republic of China. At this juncture, 9 countries in the region (out of 16 countries worldwide) recognize Taiwan, while the remaining 24 countries in the region recognize the PRC. Although competition between China and Taiwan for friends in the region through offers of economic assistance, also known as checkbook diplomacy, had been waning for about a decade, in 2017 and 2018, Panama, the Dominican Republic, and El Salvador switched recognition to China. Economic Relations China's economic goals in the region include securing access to raw materials (such as oil and various ores and minerals) and agricultural goods (especially soybeans); establishing new markets for Chinese goods, including high value-added products; and partnering with Latin American firms to access and develop technology. China also has sought to secure investment opportunities in Latin America for its infrastructure firms and to reduce excess capacity in steel, cement, and other related commodities. Total China-Latin America trade increased from $17 billion in 2002 to almost $306 billion in 2018. In 2015, PRC President Xi set a goal of increasing total China-Latin America trade to $500 billion in 10 years. China's imports from Latin America and the Caribbean amounted to almost $158 billion in 2018, accounting for almost 7.5% of China's overall imports; China's exports to the region in 2018 amounted to $148 billion, accounting for 5.9% of China's total exports. China has become the top trading partner of Brazil, Chile, Peru, and Uruguay. Major Chinese imports from the region in 2018 were primarily natural resources, including ores (29%), soybeans (19%), petroleum (19%), and copper (8%). Major PRC exports to Latin America included electrical machinery and equipment (21%); machinery and mechanical appliances (15%); motor vehicles and parts (7%); and a wide array of industrial and consumer products. In the aftermath of U.S. withdrawal from the proposed Trans-Pacific Partnership (TPP) free trade agreement in January 2017, China participated in a meeting with the remaining 11 TPP signatories (including Chile, Mexico, and Peru) regarding future trade integration in the Asia Pacific region. Although the remaining TPP signatories have concluded their own trade agreement without the United States, all three Latin American signatories to the https://crsreports.cong

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