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1 [1] (May 18, 2021)

handle is hein.crs/govedjf0001 and id is 1 raw text is: Ccw0ressbno $ ft rvs nfoa mo th~ h92k a1~ve d~4 fl nte V 14 Updated May 18, 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 y ears, U.S. policymakers have raised questions regardingpotential 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 growthreflects China's globalsoft power efforts and influence operations worldwide. A successionofChineseleaders andother officials have visited the region to court governments. In turn, regional leaders and officials have frequently visited China. The PRC has signed a variety of bilateralp artneship agreements with countries throughout the region, including comprehensive strategic partnerships with Argentina, Brazil, Chile, Ecuador, Mexico, Peru, and Venezuela. Diplomacy Beijing's diplomatic overtures in Latin America underpin China's economic activities andhelp 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 aimto challengethe 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 a p articip antin the Asia Pacific Economic Cooperation forum. Amid the Coronavirus Disease 2019 (COVID-19) pandemic, China has sold vaccines and provided medical as sistance andloans to about a dozen countries throughout the region. PRC PresidentXiJinping participated in a January 2015 summit 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 meeting, China and CELAC countries agreed to afive-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 and Caribbean countries to participate in its Belt and Road Initiative (BRI), which is focusedon PRC-backed infrastructure development around the world. Currently at least 19 countries in the region are participating in the BRI. In 2016, the PRC government released its second policy paperon LAC. The document states that China seeks to strengthen cooperation on the basis ofequality and mutual benefit in severalkey areas, including exchanges and dialogues, trade and investment, agriculture, energy, infrastructure, manufacturing, and technological innovation. The paper s tates that China will actively carry out military exchanges and cooperation with countries in the region 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 stillmaintain diplomatic relations with Taiwan, also known as the Republic of China. Currently, 9 countries in the region (out of 15 countries worldwide, including the Vatican) recognize Taiwan, and the remaining 24 countries in the region recognize the PRC. In 2017 and 2018, Panama, the Dominican Republic, and I Salvador switched recognition to the PRC. Economic Relations China's economic goals in LAC include securing access to raw materials (such as oil, ores, andminerals) and agricultural goods (especially soybeans); establishing new markets for Chinese goods, includinghigh value-added products; and partnering with Latin American firms to access anddevelop technology. China also has sought to secure investment opportunities in Latin America for its infrastructure firms. Just as Latin America's economic linkages with China helped the region withstand the 2008 global fmancial crisis, China's post-COVID-19 economic rebound could play an important role in Latin America's post-pandemic recovery. Total China-LAC trade increased fromalmost $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 fromLAC amountedto $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%), motor vehicles andparts (6%), and a wide array of industrial and cons umerproducts. 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 (at https://www.aei.org/china-global-investment-tracker/), which tracks large transactions of $100million or more, China's investments in LACfrom2005 to 2020 amounted ttps ://crs reps S

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