Xi courts Latin America as Trump’s tariffs pressure region
China has signed free trade agreements with Chile, Peru, Costa Rica and Nicaragua
[NEW YORK] Chinese President Xi Jinping vowed to deepen economic cooperation with Latin American and Caribbean nations and offered visa-free entry to some countries, as he seeks to position China as a better partner than the US.
China will provide a 66 billion yuan (S$12 billion) credit line to support development in the region, known in short as LAC, Xi told the fourth ministerial meeting of the China-Community of Latin American and Caribbean States Forum in Beijing on Tuesday (May 13). Visa-free arrangement will also be extended to five countries from the group, Xi said, without naming them.
“Together, China and LAC countries champion true multilateralism and uphold international fairness and justice,” Xi said. Without naming any country, he said trade wars have no winners and that “bullying or hegemonism only leads to self-isolation”.
The remarks were the first public comments by the Chinese leader since Beijing secured better-than-expected temporary tariff reductions from Washington on Monday. They also represented Beijing’s latest efforts to earn greater sway in world affairs, in part by portraying itself as a leader of the Global South.
Xi also vowed to import more products from LAC countries and encourage Chinese investment in the region, framing China as a beneficial partner. He did not address rising concerns over industrial overcapacity in China, even as some countries from the region began imposing tariffs on Chinese steel to protect domestic makers.
The forum, established in 2014, gathered Brazilian President Luiz Inacio Lula da Silva and other state leaders from Colombia and Chile, alongside senior officials from across the 33-member group.
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China has steadily expanded its footprint in Latin America, becoming a primary source of financing and a top trading partner for many countries. More than a dozen nations in the region have joined Beijing’s Belt and Road Initiative, leading to significant Chinese investment in projects such as Bogota’s metro system and the Chancay port in Peru.
China has signed free trade agreements with Chile, Peru, Costa Rica and Nicaragua. Last year, trade between China and LAC countries exceeded US$500 billion for the first time, an increase of over 40 times since 2000, Xi said in his speech.
Despite the 90-day truce announced on Monday, drastic tariffs introduced by US President Donald Trump this year have spurred Beijing to reinforce its image as a champion of the existing global economic framework and bolster alliances, including with traditional US partners.
In response, the Trump administration has intensified efforts to counter China’s influence. Defense Secretary Pete Hegseth recently vowed to eliminate Beijing’s “malign influence” over the Panama Canal, while Treasury Secretary Scott Bessent publicly urged Argentina to reduce its dependence on Chinese loans. BLOOMBERG
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