China's relations with Latin America have progressed well, especially in recent years. Its ties with Brazil, Argentina and Mexico are even helping tackle the global economic crisis and chart the road to a new international order.

In view of the profound changes taking place in the West, China has become an important strategic option for Latin American countries looking to diversify their diplomacy. Their common interests are increasing and their ties are moving toward a turning point on bilateral, as well as multilateral platforms.

China and Latin American states are among those that have benefited a lot from the gradual multi-polarization of the world order both politically and in the economic field. China's emergence as an economic power, Russia's efforts to regain its waning influence in Latin America, and India's and Iran's moves to develop ties with Latin American countries have boosted the continent's image in the international arena. All this has made Latin American countries choose their own paths of development. And the declining influence of the US and the European Union (EU) in Latin America has made their task easy.

Latin American countries' ties with the US entered a period of mutual accommodation after Barack Obama assumed the Oval Office. Their relations with the EU, too, have made little progress because the latter failed to pay enough attention to its interests.

Latin American countries want to have closer trade ties with Asian countries, especially China, because they are now more aware of the importance of the Asia-Pacific region. They want to strengthen trade ties with China because they no longer want to be dependent only on the US and the EU. It's little wonder then that China replaced the US as Brazil's largest trading partner in the first four months of this year.

Perhaps the main reason why they want to strengthen their ties with China and other Asian countries is that they don't think the US or the EU can help them achieve robust economic growth in the near future.

On the other hand, they have realized that trade with China, which has the potential of increasing its investment in the continent manifold, could expedite both sides' economic recovery in true earnest. Financial cooperation between them and China has reached new heights: from preferential loans to exploitation of resources, boosting trade and infrastructure construction.

China and Latin American countries agree on a series of issues, from ways to tackle the global economic crisis and fight trade protectionism to demanding a reform of the international monetary system (led by the International Monetary Fund and the World Bank) and tackling climate change.

To increase their representation in emerging markets and their voting power in international affairs, China, Brazil, Mexico and Argentina can coordinate and cooperate at global platforms such as G-20 and G-8 plus five nations' meetings.

But Sino-Latin American ties face some difficulties, too. The differences in their cultures, languages and political systems could make mutual understanding and communication difficult. Perhaps because of that China and some Latin American countries are yet to deal with some issues properly and take their ties to greater heights.

The two sides have to make great efforts to stop politicization of some trade disputes. Some Latin American countries practice trade protectionism in some form or the other, which is likely to create frictions and prevent ties from developing smoothly. That's why strong political will is needed on the part of China and Latin American countries to deepen trade cooperation and seek out more workable methods of collaboration.

The importance Latin American countries attach to ties with China gives Beijing a chance to adopt an efficient economic diplomacy toward the region in order to consolidate and expand its ties. It's important that Latin American countries and China make more concerted efforts to enhance mutual understanding and steer clear of misunderstandings.

Frequent political reshuffles in Latin American countries, too, make it necessary for both sides to enhance political mutual trust and strengthen party-to-party exchanges.

Besides, they should try to not let US policies influence their bilateral ties. Given that the US still is the only superpower, an improvement in Sino-Latin American ties has caused misgivings in Washington. Some US scholars have even suggested that China's activities in Latin America be monitored more closely.

But China and Latin American countries should not allow this to determine their ties. In the long term, the elevation of Sino-Latin American ties to a strategic level will not only strengthen South-South cooperation, but also help push forward multilateralism and democratization of international relations.

The author is a scholar with the Institute of Latin American Studies under the Chinese Academy of Social Sciences

(China Daily 06/16/2009 page8)