China's Strategic Policy on Latin America and the Caribbean

Building a Community with a Shared Future

Analysis of China's 3rd Policy Paper on Latin America and the Caribbean. Moving beyond trade towards systemic economic, infrastructure, and social integration.

The 5 Strategic Programs

The policy framework is built upon five comprehensive pillars designed to foster equality, mutual benefit, and innovation.

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Solidarity

Political mutual trust, One-China principle, and support for core interests.

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Development

Economic integration, trade upgrading, and financial cooperation.

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Civilization

Cultural exchanges, education, tourism, and mutual learning.

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Peace

Security cooperation, military exchanges, and cyber sovereignty.

🔗

Connectivity

People-to-people exchanges, poverty reduction, and local governance.

Trade 2.0: Beyond Extraction

China's strategy signals a move away from raw material extraction. The new focus is on specialty goods, advanced technology, digital services, and green manufacturing capacity.

Key Strategic Shifts:
  • Trade in "Technology-Intensive" products.
  • Expansion of Digital Trade & E-commerce.
  • Establishment of Free Trade Agreements (FTAs).

Strategic Focus Shift (Conceptual)

Relative emphasis in policy language

Strategic Goal: Volume & Balance

The policy paper emphasizes the need to "promote sound and balanced trade."

China aims to manage trade frictions by diversifying the structure and balancing commodity exports with high-tech imports.

📈 Target:Stable Growth + Equilibrium

Projected Trade Dynamics (Policy Vision)

Financial Integration & De-dollarization

China proposes a toolkit of financial instruments to facilitate trade and investment directly in local currencies.

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Local Currency Settlement

Expanding RMB clearing arrangements and currency swaps.

🐼

Panda Bonds

Encouraging LAC entities to issue bonds in the Chinese market.

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Special Loans & Funds

Dedicated infrastructure loans and production investment funds.

Infrastructure Scope Expansion

Traditional focus vs. New Policy Strategy

The "New Infrastructure" Wave

The policy pivots towards "New Infrastructure", aligning China’s digital capabilities with LAC modernization needs.

Green Energy

Solar, Wind, Hydro, and Hydrogen supply chains.

Digital Infra

5G networks, Smart Cities, and Cloud Computing.

Aerospace

BeiDou Navigation System & Satellite data application.

Logistics

Smart customs, cold chain, and port logistics.

Institutional Framework

A dense network of specialized forums drives this cooperation.

1

China-CELAC Forum

Primary mechanism for regional political dialogue and strategy.

Infrastructure Forum

Specialized venue for discussing connectivity and projects.

2
3

Business Summit

Facilitating B2B connections, investment deals, and trade promotion.

Sci-Tech & Innovation Forum

Advancing cooperation in AI, space, and sustainable food systems.

4
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