China has announced a 66 billion yuan ($9.18 billion) credit line for Latin American and Caribbean countries, as part of its efforts to strengthen economic and political influence in the region, reports "Reuters".
The news was announced by President Xi Jinping at the triennial ministerial meeting of the China-CELAC forum in Beijing, attended by delegations from about 30 countries.
Xi said that countries in the Global South have the right to development and independence, emphasizing China's commitment to increasing imports from the region and promoting Chinese investment in infrastructure. At the same time, Beijing aims to strengthen its position vis-à-vis Taiwan, with diplomatic efforts involving Latin American and Caribbean countries - seven of which still maintain formal ties with Taipei.
Among the participants in the meeting were representatives of Haiti and Saint Lucia, which continue to recognize Taiwan. Panama's ambassador was also present, although the country said it would not renew its participation in the "One Belt, One Road" initiative.
The new credit line, denominated in yuan, is intended to facilitate payments outside the dollar system, especially through swap agreements. Analysts note that such access to capital is important against the background of difficulties in raising financing in dollars.
However, the new financing is half of what was proposed in 2015, as the slowdown of the Chinese economy affects its international activity. Xi also announced an upcoming visa-free regime with five unnamed countries.
The meeting adopted a joint action plan until 2027, covering areas such as agriculture, nuclear energy and technological cooperation. Brazil - the region's largest economy - is central to the relationship: of the $240 billion Chinese imports from CELAC in 2024, almost half came from Brazil.
Despite President Lula's warning against over-reliance on world powers, his country has continued to deepen trade ties with China, including by signing new bilateral agreements. Total bilateral trade between China and CELAC countries reached $515 billion in 2024, up from $450 billion in 2023.