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Sino-Latin America relations are relations between China — which is by defined as either thePeople's Republic of China (PRC,China) or theRepublic of China (ROC,Taiwan) — and the countries ofLatin America. Such relations have become increasingly important between the region andLatin America.[1]
| Latin America | China |
|---|---|
| Latin America | Taiwan |
|---|---|
Between 2000 and 2009, trade between China and Latin America increased by 1,200% from $10 to $130 billion.[2] According to the Chinese Trade Ministry Counselor Yu Zhong, in 2011 the value of trade increased to $241.5 billion, making China the second largest trading partner of Latin America (the USA is the largest). The top five nations in this China-Latin trade wereBrazil,Mexico,Chile,Venezuela andArgentina.[3]
In 2009 7% of Latin America's exports was to China. It consisted largely of raw material andcommodities such as copper, iron ore, oil, and soybeans.[4] China was the largest export market for Brazil, Chile, and Peru and the second largest for Argentina, Costa Rica, and Cuba. Four nations contributed 90% of the exports: Brazil (41%), Chile (23.1%), Argentina (15.9%), and Peru (9.3%). Increased Chinese demand has also been argued to increase the commodity prices of Latin American exports.[2] In the case of Brazil the rise of a new middle class has even been seen as due to Chinese commodity demand.[5] On the other hand, a large part of the exports of Costa Rica (which has a Free Trade Agreement with China), El Salvador, and Mexico to China were high-tech manufactured goods.[6]
5% of China's exports went to Latin America in 2009 and consisted mainly of industrial and manufactured goods. Chinese goods are popular in part due to their low costs. Chinese manufacturers are also making substantial efforts to establish themselves asbrand names for the new middle class.[2] China is investing in power plants in Brazil, and repairing a railway in Argentina.[7]
According to a 2012Fitch ratings report, in 2010, 92% of Latin American exports to China were commodities; 85% of Chineseforeign direct investment went to extractive industries as did 60% of Chinese loans. The report stated that the effects are mixed but overall Latin America has benefited from the relationship with China by higher commodity prices, increased growth, increased investment, and improved governmental financials.[8] There are also concerns of environmental impacts related to the huge increase in extractive industries and agriculture by Chinese companies in Latin America, including pollution, deforestation,habitat destruction and rising fossil-fuel emissions.[9]
There have been concerns regarding the relationship due to Latin American dependency on exports of low-value added, highly price volatile commodities that employ relatively few people. Latin American manufacturers have faced increasing competition from China on both domestic and international markets. In some countries there have protests against the raising inflow of Chinese manufactured goods, local Chinese businesses, and perceived loss of manufacturing jobs to China.[2][8]
The bookThe Dragon in the Room: China and the Future of Latin America found that 92% manufacturing exports from Latin American were in sectors where China was increasing its market share while Latin America was decreasing its share, or where both China and Latin America where increasing their shares but Latin America at a slower rate.[10] Several experts have even argued that the long-term outlooks for Latin American manufacturing are poor and other sources for growth and trade such as services should be sought.[5]
After the2015–16 Chinese stock market turbulence many Chinese investment projects in Latin America were canceled or have slowed.[11] These include theNicaragua Canal.
China has been seen as an alternative to the United States and Europe by Latin American nations for support in the international community, for funding of infrastructure and humanitarian aid, and for creating economic growth. The number of high-level meetings between Chinese and Latin American officials have rapidly increased. These have been accompanied by several bilateral agreements.[2] The creation of theBRICS group also helped to increase relations between China and Brazil.
Leaked diplomatic cables describe a divided Latin American opinion regarding China. Neil Dávila, head of Mexico's federal agency for promoting foreign commerce and investments, stated "We do not want to be China's next Africa," reflecting a common concern regarding the effects ofChinese involvement in Africa. Colombia, Brazil, and Chile also expressed concerns while Venezuela and Argentina were convinced that dependency on the United States must end and saw China as the greatest opportunity for their exports. Chinese officials in response has accused US diplomats of spreading mistrust and Chinese Vice-presidentXi Jinping in 2009 in Mexico stated that "China does not export revolution. China exports neither hunger nor poverty. We do not cause problems. What more can be said of us?"[12]
Many of the nations that continue to have official diplomatic relations withTaiwan are in Central America and the Caribbean. Taiwan has previously offered military exchanges and training as well as economic aid in return but has more recently had difficulty competing with China's economic incentives and in 2008 officially abandoned this "checkbook diplomacy". The remaining pro-Taiwan nations have been seen as waiting for better Chinese offers.[2]
The formation ofCommunity of Latin American and Caribbean States was warmly welcome by China in 2011.Hugo Chavez read aloud a letter from China's PresidentHu Jintao congratulating the leaders on forming the new regional bloc.[13] On January 8, 2015, the 1st China-CELAC Forum opened at theGreat Hall of the People in China.[14]
In January 2019, numerous countries including the US recognized the legitimacy of opposition leaderJuan Guaido asPresident of Venezuela. The PRC issued an official statement condemning American intervention in the internal affairs of Venezuela, supportingNicolás Maduro in the struggle for the Venezuelan presidency.[15]
Military relationships have been mainly through military-to-military contacts. In particular Venezuela, Chile, Bolivia, and Cuba have had frequent official military visits, exchange of military officers, and navy port calls. South American countries such as Venezuela, Bolivia, Ecuador, Peru and Argentina are buying Chinese weapons.[16][17] Chile, Ecuador and Peru were visited by a Chinese flotilla in 2009.[18]
In 2011 China and Bolivia signed a military-to-military cooperation agreement.[2]
In 2015, China'sParamount leaderXi Jinping andPresident of Argentina,Cristina Fernandez de Kirchner, announced prospective arms sales and defense cooperation agreements extending beyond the scope of any made between China and a Latin American nation to date. These plans include Argentina’s purchase or coproduction of 110 8×8VN-1 APCs, 14JF-17/FC-1 multirole fighters, and fiveP18Malvinas class patrol ships.[19][20] While the government of PresidentMauricio Macri, elected in December 2015, soon dropped the arms purchases from China.[21] that also authorizes construction ofsatellite tracking facility nearLas Lajas, Neuquén; base is managed byPeople's Liberation Army Strategic Support Force.[22][23] Per Argentine ambassador to China, Diego Guelar, China has agreed to use the base only for civilian purposes.[24]
InKing George Island,Antarctica, China and Chile share side-by-side military facilities.[18] In 1982, withPinochet's Chile allowed, China built aGreat Wall research station in the Antarctic inside Chile's territorial claims.[25]
China has launched communication satellites (from launch sites in China) for Venezuela,[26] Bolivia, Ecuador, Brazil, and Argentina.[27][28]
In 2004 China joined theOrganization of American States as a permanent observer. In 2008 China joined theInter-American Development Bank as a donor. China has also increased its relationships withCELAC, theAndean Community,PARLACEN, and theCaribbean Community.[2]
The PRC actively seeks cultural exchanges with Latin America andCCTV-4 America has extensive Spanish language programming.
Note: Different political entities have controlled mainland China: theEmpire of China from 221 BC to 12 February 1912, theRepublic of China from 12 February 1912 to 7 December 1949, and thePeople's Republic of China from 7 December 1949 to present. Since 1949, there has been a dispute between the People's Republic of China (PRC), controlling mainland China, and the Republic of China (ROC), controllingTaiwan, over which government represents China. China was represented in the United Nations by the Republic of China (ROC) from 24 October 1945 to 25 October 1971 and is currently represented by the People's Republic of China (PRC) since 25 October 1971. This list covers diplomatic relations by Latin American countries with China under its different political representations.
| Country | Diplomatic relations began | Notes |
|---|---|---|
| 1945 (ROC) 16 February 1972 (PRC) | SeeArgentina–China relations
| |
| 1919 (ROC) 9 July 1985 (PRC) | SeeBolivia–China relations | |
| 3 October 1881 (Qing) 1928 (ROC) 15 August 1974 (PRC) | SeeBrazil–China relations | |
| 18 February 1915 (ROC) 15 December 1970 (PRC) | SeeChile–China relations | |
| 1941 (ROC) 7 February 1980 (PRC) | SeeChina–Colombia relations | |
| 1941 (ROC) 1 June 2007 (PRC) | SeeChina–Costa Rica relations | |
| 16 September 1902 (Qing) 1913 (ROC) 28 September 1960 (PRC) | SeeChina–Cuba relations | |
| 1941 (ROC) 1 May 2018 (PRC) | SeeChina–Dominican Republic relations
| |
| 1946 (ROC) 2 January 1980 (PRC) | SeeChina–Ecuador relations | |
| 1941 (ROC) 21 August 2018 (PRC) | SeeChina–El Salvador relations
| |
| 15 June 1933 (ROC) | SeeChina–Guatemala relations
| |
| 9 April 1941 (ROC) 26 March 2023 (PRC) | SeeChina–Honduras relations
| |
| 14 December 1899 (Qing) 1928 (ROC) 14 February 1972 (PRC) | SeeChina–Mexico relations
| |
| 1930 (ROC) 7 December 1985 (PRC) | SeeChina–Nicaragua relations | |
| 16 January 1910 (Qing) 1912 (ROC) 12 June 2017 (PRC) | SeeChina–Panama relations
| |
| 8 July 1957 (ROC on Taiwan) | SeeChina–Paraguay relations
| |
| 26 June 1874 (Qing) 1913 (ROC) 2 November 1971 (PRC) | SeeChina–Peru relations | |
| 1957 (ROC on Taiwan) 3 February 1988 (PRC) | SeeChina–Uruguay relations
| |
| 1941 (ROC) 28 June 1974 (PRC) | SeeChina–Venezuela relations |
Note: The Republic of China controlled mainland China from 12 February 1912 to 7 December 1949 and has controlled Taiwan since 7 December 1949. China was represented in the United Nations by the Republic of China (ROC) from 24 October 1945 to 25 October 1971 and is currently represented by the People's Republic of China (PRC) since 25 October 1971. Countries which maintain diplomatic relations with the People's Republic of China have to severe diplomatic relations with Taiwan due to the One China policy. Informal relations between Latin American countries and Taiwan are maintained.
| Country | Diplomatic relations began | Diplomatic relations ended | Maintains unofficial relations | Notes |
|---|---|---|---|---|
| 1945 | 1972 | Yes | SeeArgentina–Taiwan relations
| |
| 1919 | 1985 | No | SeeBolivia–Taiwan relations [zh]
| |
| 3 October 1881 (Qing) 1928 | 1974 | Yes | SeeBrazil–Taiwan relations
| |
| 18 February 1915 | 5 January 1971 | Yes | SeeChile–Taiwan relations
| |
| 1941 | 1980 | Yes | SeeColombia–Taiwan relations
| |
| 1941 | 6 June 2007 | No | SeeCosta Rica–Taiwan relations [es;zh]
| |
| 16 September 1902 (Qing) 1913 | 1 September 1960 | No | SeeCuba–Taiwan relations [zh]
| |
| 1941 | 1 May 2018 | No | SeeDominican Republic–Taiwan relations
| |
| 1946 | 18 November 1971 | Yes | SeeEcuador–Taiwan relations [es;zh]
| |
| 1941 | 21 August 2018 | No | SeeEl Salvador–Taiwan relations
| |
| 15 June 1933 | Present | Official | SeeGuatemala–Taiwan relations
| |
| 9 April 1941 | 26 March 2023 | No | SeeHonduras–Taiwan relations [zh]
| |
| 14 December 1899 (Qing) 1928 | 16 November 1971 | Yes | SeeMexico–Taiwan relations
| |
| 1930 | 1985 | No | SeeNicaragua–Taiwan relations [es;zh]
| |
| 1990 | 9 December 2021 | |||
| 16 January 1910 (Qing) 1912 | 13 June 2017 | No | SeePanama–Taiwan relations
| |
| 8 July 1957 | Present | Official | SeeParaguay–Taiwan relations | |
| 26 June 1874 (Qing) 1913 | 2 November 1971 | Yes | SeePeru–Taiwan relations
| |
| 1957 | 1988 | No | SeeTaiwan–Uruguay relations [zh]
| |
| 1941 | 1974 | No | SeeTaiwan–Venezuela relations
|
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