Americas Quarterly - Winter 2012

China–Latin America: Much in Common ZHANG MINGDE

positions on many issues. China and the emerging powers in Latin America now consult, coordinate and collaborate well in many formal and informal multilateral forums like the grouping of BRIC (Brazil, Russia, India, and China) countries, the G20, the United Nations Conference on Climate Change, and the UN Conference on Environment and Sustainable Development. These pragmatic trade and economic relationships have not only consolidated political relations; they have brought tangible benefit to the well-being of both peoples.

China has signed free-trade agreements with Chile, Peru and Costa Rica. It has become one of Latin America’s major trade partners, and the number-one trade partner of Brazil and Chile. The pattern of trade has deepened and continues to improve. With the aim of realizing economic complementarity, it is based on the principle of mutual benefit and sustainable development for both sides.

China’s demand for energy, agricultural products and minerals has grown as China’s economy and standard of living have grown. The mix of these products accounts for the largest share of Latin America’s exports to China. But at the same time, Latin American countries are also invested in the high-end potential of China’s economic development and its ever-growing market demand. These offer the opportunity for Latin America and the Caribbean producers to improve the quality of their economic and trade cooperation with China by taking advantage of their rich energy and mineral resources and their relatively developed agricultural products.

The progress achieved through our cooperation is obvious. In 2010, the volume of trade between China and Latin America and the Caribbean reached $183 billion, and China’s nonfinancial investment in the region reached $11.09 billion.

The diversification of trade with China has served Latin America well in recent years. A stable and healthy Chinese economy contributed to Latin America’s—and much of the world’s—ability to avoid the destabilizing effects of global financial fluctuation and recession.

Latin America and the Caribbean on China’s “Strategic Plane”

Chile was the first Latin American country to establish diplomatic relations with China, the first to enter into negotiations for China’s ac- cession to the World Trade Organization (WTO), and the first to sign a free-trade agreement with China. Brazil is now on a fast track of developing comprehensive relations with China. Not only is it China’s most important Latin American partner in terms of investment and trade, Brazil also has engaged in high-tech cooperation. We are currently jointly developing a satellite, which is the best example to date of South-South cooperation in aviation and technology.

As a reflection of these growing relations, in November 2008 the Chinese government released its first-ever strategy paper on its relations with the region. According to China’s policy paper on Latin America and the Caribbean, China has three political, economic and cultural objectives in developing the relationship: 1) politically, play, the role of a responsible power in global development. In a speech commemorating the 90th anniversary of the founding of the Chinese Communist Party, President Hu Jintao said that China has sought this role through a policy of pursuing “reform and opening-up, seeking economic development and improving the well-being of the people.” Because it believes that this path is a positive one, China welcomes all countries to participate in China’s development, and to share China’s development opportunity. By doing so, China will share its prosperity with people all over the world.

This year China starts its 12th Five-Year Program. The program seeks to further implement a strategy of mutual benefit. This includes enhancing the level of our