A South-South cooperation framework

All this makes the China-CELAC Forum extremely important for building a platform which can work out new forms of cooperation between China and Latin America and the Caribbean. In this regard, the new "1+3+6" cooperation framework proposed by Xi in Brazil last year defines the objectives and instruments China and CELAC could strive for to promote their common development.

The six fields include infrastructure construction. As such, it is a key sector not only for building the base for a more balanced economic engagement between the two sides, but also for developing the still limited trade and logistic routes between Asia and Latin America.

Their cooperation in this sector could be fruitful, because Chinese companies have developed strong expertise in construction and engineering. Now that China is implementing a comprehensive reform agenda to change its development model from exports and high investment into a more innovation-driven one - led by domestic consumption - more Chinese companies will step up their "go-global" strategies to make up for the market gaps at home. Latin America could then become an interesting level playing field to do so.

The region has a huge infrastructure deficit. According to CAF Development Bank of Latin America, the countries of the region invest about 3 percent of GDP into the sector. Yet they will have to double their investments if they want to cover the deficit. The new dialogue China and CELAC are establishing will, therefore, further support their cooperation in economic infrastructure for achieving sustainable development goals.

The author is special China consultant to CAF Development Bank of Latin America, UN ECLAC advisor and researcher at Emerging Markets Institute at Beijing Normal University.