-
-
-
China Daily E-paper
Op-Ed Contributors
Hu's visit to boost relations
By Huang Shikang (China Daily)
Updated: 2010-04-14 08:21
 |
Large Medium Small |
The relations between China and Latin America themselves have seen unprecedented development in both strategic and commercial cooperation in this century. Political mutual trust is deepening, and opportunities and prospects for economic cooperation are also in good shape.
Latin America, as an economic and strategic partner, is indispensable to China's peaceful development. The economies of China and Latin American countries are complementary.
A large proportion of China's imports of resources and daily necessities are from Latin America, while China's exports to the region are increasing. China's direct investment in Latin America is also growing.
In Ecuador, Colombia, Venezuela and Peru, China has been contracted to develop oilfields. China has invested more than $6 billion into seven large mines and more than $10 billion in almost 30 grand infrastructure construction projects. In addition, China has offered nearly $20 billion of loans to Latin America.
There is still huge potential for economic cooperation between China and Latin America. China's direct investment in Latin American non-financial sectors was $8 billion by the end of 2008, amounting to only 5.5 percent of total foreign direct investment in the region and 4.4 percent of China's total outbound investment. With growing investment and expanding projects, China and Latin America is set to take advantage of the potential. Recently, national leaders suggested using financial means to promote investment and trade, which is seen as a new approach in developing bilateral economic cooperation.
Still, obstacles remain on the road to economic cooperation. A number of Latin Americans continue to fear a "China threat", protectionism in Latin America is on the rise, and cultural differences and geographic distances hinder cooperation. Despite the disadvantages, President Hu's visit to Latin America, like previous ones, will facilitate a new wave of economic projects between China and the region.
The author is a former Chinese ambassador to Chile and Mexico.
(China Daily 04/14/2010 page8)
