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

1 [1] (September 18, 2018)

handle is hein.crs/crsmthzzbov0001 and id is 1 raw text is: Ir o rq h IegisIatvedtatesn~e1914 Congressional Research Service September 18, 2018 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 the past 15 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, and 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, and Venezuela. Diplomacy and Policy 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 and Premier Li Keqiang have made four trips to Latin America since 2013, visiting 11 countries. President Xi 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 and China invited Latin American countries to participate in its Belt and Road Initiative, which is focused on infrastructure development in various regions around the world. A 2016 PRC 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. According to some sources, PRC defense sales and assistance to the region have expanded from small arms to advanced weapons systems. They include military exchanges with various countries, military helicopters and vehicles to Bolivia, rifles and patrol boats to Ecuador, rocket launch vehicles to Peru, and fighter aircraft and armored personnel carriers to Venezuela. Some PRC military equipment, however, reportedly suffers from poor quality and aftermarket support. 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. At this juncture, 9 countries in the region (out of 17 countries worldwide) recognize Taiwan, also known as the Republic of China, while the remaining 24 countries in the region recognize the PRC. Although tensions between China and Taiwan over so-called 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 $262 billion in 2014 and was valued at $257 billion in 2017. In 2015, PRC President Xi set a goal of total China-Latin America trade reaching $500 billion in 10 years. China's imports from Latin America and the Caribbean amounted to about $126 billion in 2017, accounting for 7% of China's overall imports; China's exports to the region amounted to $131 billion, accounting for 5.7% 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 2017 were primarily natural resources, including ores (3 1%), soybeans (19 %), petroleum (16%), and copper (9%). Major PRC exports to Latin America included electrical machinery and equipment (21%); machinery and mechanical appliances (15%); motor vehicles and parts (6%); and a wide array of industrial and consumer products. wwwcrs.gov 1 7-5700 S

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