Dispute With The US, China Promises Loans Of Hundreds Of Trillions For Latin America-Karibia

Chinese President Xi Jinping/DOK PHOTO via Wikimedia Commons

JAKARTA - Chinese President Xi Jinping promised credit of 66 billion yuan (approximately 9.18 billion US dollars or IDR 152.5 trillion) for Latin American and Caribbean countries that are members of the Community of Latin American and Caribbean States (CELAC).

"China will also provide credit of 66 billion yuan to support the development of Latin American and Caribbean countries," President Xi said at the opening of the China-CLAC Forum Ministerial Meeting in Beijing, Tuesday, May 13.

The China-CLAC (Community of Latin American and Caribbean States) forum consists of China and 33 Latin American and Caribbean countries aimed at developing comprehensive cooperation based on the principles of equality and mutual benefit between member countries.

"China and Latin American and Caribbean countries are important members of 'Global South'. Only through the unity and cooperation of world countries can maintain global peace and stability, as well as encourage development and prosperity together," added President Xi.

For the first time, President Xi also publicly made a statement regarding the trade war.

"The tariff war and trade wars will not produce winners. Hegemony behavior and forcing will only self-isolate. Facing increasing block confrontations as well as increasing unilateralism and protectionism, China is willing to cooperate with regional countries to encourage joint development and build communities with a future with Latin China-Americans," Xi said.

President Xi also offered five cooperation initiatives for CLACC members. The first initiative is "Union Initiative", namely by strengthening coordination on important international and regional issues.

"In the next three years, China will invite 300 political party cadres from CLACC countries every year to visit China to exchange experiences in governance. China supports increasing regional influence on the international stage and jointly safeguarding the international system centered on the United Nations," added President Xi.

The second initiative is "Development Initiative", namely maintaining a multilateral trading system, maintaining stability and smoothness of global supply chains and creating an open and cooperative international environment.

"China will implement a plan for a Latin China-American technology partnership, import more quality products from the region, and encourage Chinese companies to invest bigger in Latin American territory," Xi said.

Third, "Initiative Civilization" is to promote universal values such as peace, development, justice, democracy, and freedom.

"We will hold a Conference on the Dialogue of Latin China-American Civilizations, hold a 'Latin American Art Council', deepen cooperation in cultural heritage such as archeology, preservation of historical sites, and museum exhibitions and conduct research on ancient civilizations together and combat illegal trade in cultural goods," Xi said.

Fourth, "Initiative Peace" by supporting Latin America and the Caribbean as Peaceful Areas and the statements of 33 countries to form a nuclear-free zone.

"We will strengthen cooperation in disaster management, cybersecurity, counter-terrorism, anti-corruption, drug eradication, and eradication of cross-border crimes in order to maintain regional stability and security. China will conduct law enforcement training and provide equipment assistance according to the capabilities and needs of CLAC member countries," Xi explained.

The fifth is "People's Closeness Initiative" including China's plan to provide 3,500 government scholarships for CLACC countries, 10,000 training opportunities in China, 500 Mandarin teacher scholarships, 300 poverty alleviation technician training, 1,000 visits from the "Chinese Language Bridge" group, 300 people's welfare projects and supporting vocational education cooperation such as Luban Workshop and Mandarin education in the next three years.

"China will hold a 'Latin China-American Friendship' Film and TV Exhibition, and translate 10 TV series or flagship audio-visual programs each year. We will also organize a Latin-American and Caribbean China Tourism Dialogue and impose visa-free policies for 5 regional countries and will expand them gradually," Xi said.

President Xi also said the trade value of Latin China-Americans for the first time surpassed $500 billion by 2024, or had increased more than 40 times compared to 2000.

Two-way trade between China and CELAC hit $515 billion in 2024, according to China's customs data, up from US$450 billion in 2023 and only US$12 billion in 2000.

Present at the conference were Colombian President Gustavo Petro, Brazilian President Lula da Silva, Chilean President Gabriel Boric, former Brazilian president who is currently the President of the New Development Bank (NDB) Dilma Vana Rousseff and foreign ministers of the CLACC member country.

The first Chinese-CLAC Forum Ministerial Meeting was held 10 years ago, January 8-9, 2015 in Beijing, marking the official launch of the forum.

The 33 cluster member states are Antigua and Barbuda, Argentina, Bahamas, Barbados, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Dominica, Ecuador, El Salvador, Grenada, Guatemala, Guiana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and Grenadines, Suriname, olahraga and Tobago, Uruguay and Venezuela.