Sino-Latin America relations

Sino-Latin America relations are relations between China — which is by defined as either the People's Republic of China (PRC, China) or the Republic of China (ROC, Taiwan) — and the countries of Latin America. Such relations have become increasingly important between the region and Latin America.^[1]

Trade

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 were Brazil, Mexico, Chile, Venezuela and Argentina.^[3]

In 2009 7% of Latin America's exports was to China. It consisted largely of raw material and commodities 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 as brand 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 2012 Fitch ratings report, in 2010, 92% of Latin American exports to China were commodities; 85% of Chinese foreign 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 book The 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 the 2015–16 Chinese stock market turbulence many Chinese investment projects in Latin America were canceled or have slowed.^[11] These include the Nicaragua Canal.

Political

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 the BRICS 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 of Chinese 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-president Xi 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 with Taiwan 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 of Community of Latin American and Caribbean States was warmly welcome by China in 2011. Hugo Chavez read aloud a letter from China's President Hu Jintao congratulating the leaders on forming the new regional bloc.^[13] On January 8, 2015, the 1st China-CELAC Forum opened at the Great Hall of the People in China.^[14]

In January 2019, numerous countries including the US recognized the legitimacy of opposition leader Juan Guaido as President of Venezuela. The PRC issued an official statement condemning American intervention in the internal affairs of Venezuela, supporting Nicolás Maduro in the struggle for the Venezuelan presidency.^[15]

Military

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's Paramount leader Xi Jinping and President 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 8×8 VN-1 APCs, 14 JF-17/FC-1 multirole fighters, and five P18 Malvinas class patrol ships.^[19]^[20] While the government of President Mauricio Macri, elected in December 2015, soon dropped the arms purchases from China.^[21] that also authorizes construction of satellite tracking facility near Las Lajas, Neuquén; base is managed by People'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]

In King George Island, Antarctica, China and Chile share side-by-side military facilities.^[18] In 1982, with Pinochet's Chile allowed, China built a Great Wall research station in the Antarctic inside Chile's territorial claims.^[25]

Space

China has launched communication satellites (from launch sites in China) for Venezuela,^[26] Bolivia, Ecuador, Brazil, and Argentina.^[27]^[28]

Regional organizations

In 2004 China joined the Organization of American States as a permanent observer. In 2008 China joined the Inter-American Development Bank as a donor. China has also increased its relationships with CELAC, the Andean Community, PARLACEN, and the Caribbean Community.^[2]

Cultural

The PRC actively seeks cultural exchanges with Latin America and CCTV-4 America has extensive Spanish language programming.

Relations with Latin American countries

Relations between China and Latin America

Note: Different political entities have controlled mainland China: the Empire of China from 221 BC to 12 February 1912, the Republic of China from 12 February 1912 to 7 December 1949, and the People'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), controlling Taiwan, 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
Argentina	1945 (ROC) 16 February 1972 (PRC)	See Argentina–China relations
Bolivia	1919 (ROC) 9 July 1985 (PRC)	See Bolivia–China relations
Brazil	3 October 1881 (Qing) 1928 (ROC) 15 August 1974 (PRC)	See Brazil–China relations
Chile	18 February 1915 (ROC) 15 December 1970 (PRC)	See Chile–China relations
Colombia	1941 (ROC) 7 February 1980 (PRC)	See China–Colombia relations
Costa Rica	1941 (ROC) 1 June 2007 (PRC)	See China–Costa Rica relations
Cuba	16 September 1902 (Qing) 1913 (ROC) 28 September 1960 (PRC)	See China–Cuba relations
Dominican Republic	1941 (ROC) 1 May 2018 (PRC)	See China–Dominican Republic relations
Ecuador	1946 (ROC) 2 January 1980 (PRC)	See China–Ecuador relations
El Salvador	1941 (ROC) 21 August 2018 (PRC)	See China–El Salvador relations
Guatemala	15 June 1933 (ROC)	See China–Guatemala relations
Honduras	9 April 1941 (ROC) 26 March 2023 (PRC)	See China–Honduras relations
Mexico	14 December 1899 (Qing) 1928 (ROC) 14 February 1972 (PRC)	See China–Mexico relations
Nicaragua	1930 (ROC) 7 December 1985 (PRC)	See China–Nicaragua relations
Panama	16 January 1910 (Qing) 1912 (ROC) 12 June 2017 (PRC)	See China–Panama relations
Paraguay	8 July 1957 (ROC on Taiwan)	See China–Paraguay relations
Peru	26 June 1874 (Qing) 1913 (ROC) 2 November 1971 (PRC)	See China–Peru relations
Uruguay	1957 (ROC on Taiwan) 3 February 1988 (PRC)	See China–Uruguay relations
Venezuela	1941 (ROC) 28 June 1974 (PRC)	See China–Venezuela relations

Relations between Taiwan and Latin America

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
Argentina	1945	1972	Yes	See Argentina–Taiwan relations
Bolivia	1919	1985	No	See Bolivia–Taiwan relations
Brazil	3 October 1881 (Qing) 1928	1974	Yes	See Brazil–Taiwan relations
Chile	18 February 1915	5 January 1971	Yes	See Chile–Taiwan relations
Colombia	1941	1980	Yes	See Colombia–Taiwan relations
Costa Rica	1941	6 June 2007	No	See Costa Rica–Taiwan relations
Cuba	16 September 1902 (Qing) 1913	1 September 1960	No	See Cuba–Taiwan relations
Dominican Republic	1941	1 May 2018	No	See Dominican Republic–Taiwan relations
Ecuador	1946	18 November 1971	Yes	See Ecuador–Taiwan relations
El Salvador	1941	21 August 2018	No	See El Salvador–Taiwan relations
Guatemala	15 June 1933	Present	Official	See Guatemala–Taiwan relations
Honduras	9 April 1941	26 March 2023	No	See Honduras–Taiwan relations
Mexico	14 December 1899 (Qing) 1928	16 November 1971	Yes	See Mexico–Taiwan relations
Nicaragua	1930	1985	No	See Nicaragua–Taiwan relations
Nicaragua	1990	9 December 2021	No	See Nicaragua–Taiwan relations
Panama	16 January 1910 (Qing) 1912	13 June 2017	No	See Panama–Taiwan relations
Paraguay	8 July 1957	Present	Official	See Paraguay–Taiwan relations
Peru	26 June 1874 (Qing) 1913	2 November 1971	Yes	See Peru–Taiwan relations
Uruguay	1957	1988	No	See Taiwan–Uruguay relations
Venezuela	1941	1974	No	See Taiwan–Venezuela relations