Certainty in uncertain times

LAC countries are searching for opportunities to improve their people's quality of life and China is sharing its experience and opportunities

In less than a week, Latin American and Caribbean-China relations have been strengthened strategically as a result of the APEC meeting in Peru and the G20 summit in Brazil. APEC integrates 21 economies, including Chile, China, Mexico, Peru and the United States, and accounts for almost two-thirds of global GDP, while the G20, including Argentina, Brazil, China, Mexico, and the US among others, accounts for around 66 percent of the global population and 85 percent of global GDP.

Both meetings deliberated on the demands of the Global South. The APEC meeting highlighted inclusive growth and the global risks and challenges such as overall policy uncertainty, protectionism and trade restrictions, as well as increasing food prices. At the G20 meeting, Brazilian President Luiz Inacio Lula da Silva emphasized that "neoliberal globalization has failed. In the midst of growing turbulence, the international community seems resigned to navigating aimlessly through hegemonic disputes." His call for action explicitly criticized the Bretton Woods institutions, as well as impasses on health and biodiversity and environment topics. He urged a review of financial and policy rules that disproportionately affect the Global South.

From a LAC perspective, speeches and commitments by leaders from the US and China could not have been more contrasting.

In the case of the US, President Joe Biden's presence was secondary: globally and in both meetings all members were preparing for President-elect Donald Trump's threats to "Make America Great Again" with unilateral measures against trade and foreign direct investment flows in general and against specific countries and global and regional institutions. Massive global uncertainty has been generated by the founder of the current global order and Bretton Woods institutions.

In both meetings, the presence and speeches of Chinese President Xi Jinping were enlightening for LAC countries and the whole Global South. He proposed to "foster an open, inclusive and nondiscriminatory environment for international economic cooperation" at the G20 summit. At the APEC meeting, President Xi detailed the importance of an "interconnected paradigm" for Asia-Pacific cooperation, the necessity of green innovation, and an inclusive vision for Asia-Pacific development and highlighted the support of life in a community with a shared future. From this perspective, APEC and the G20 should integrate innovation, new-quality productive forces and global ecological governance through concrete policy measures. Crises in Ukraine and Gaza and the required energy transitions and reform with regard to the legal framework of the World Trade Organization are fundamental for a world order. True multilateralism is crucial for establishing the new before abolishing the old. This is particularly relevant in 2024.

This November has been fundamental for LAC countries. Beyond geopolitical discussions, both meetings have been critical for understanding different development paths and the potential of LAC-China socioeconomic relations. LAC countries will continue with "new triangular relationships" in which the US is still a point of reference from multiple perspectives. Nevertheless, China offers serious and long-term cooperation proposals that no other global partner, neither the US nor the European Union, suggests. At the APEC meeting in Peru, President Xi inaugurated the largest port in the LAC region, with an investment of $1.3 billion that will substantially lower transportation costs and time from the LAC region to Asia and China. Facts are relevant, beyond speeches.

China's cooperation has been of outstanding importance for LAC countries in many fields, including trade, financing, investments and infrastructure. As of 2023, everyday life in LAC countries has substantially improved through more than 250 infrastructure projects, generating almost 800,000 jobs. Chinese investments in subways, telecommunications, ports and airports and infrastructure projects are helping to power development in LAC countries. China matters in everyday life in the Global South and in LAC countries in the 21st century.

However, new triangular relationships between LAC countries, the US and China will not be easy in the coming years. Mauricio J.Claver-Carone, advisor to Trump's team, recently suggested that a 60 percent tariff should be applied to any product going through Chancay or any Chinese-owned port in the region.

New triangular relationships will continue in the short, medium and long term. However, from a LAC perspective, overall cooperation and President Lula's specific requests at the G20 meeting, as well as President Xi's proposal for building a community with a shared future, are fundamental for the Global South and the LAC region.

LAC countries are searching for development opportunities to improve the quality of life of their population, including the eradication of absolute poverty, and China is sharing its experience and opportunities with the Global South and LAC countries through concrete concepts and projects.

The author is a professor at the National Autonomous University of Mexico and coordinator of the university's Center for Chinese-Mexican Studies. The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.