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Visit to bolster trade, investment: Experts

By Yu Liang (China Daily)
Updated: 2008-11-19 07:45

China's economic relations with Latin American nations will continue to grow despite the deepening global financial crisis, experts say.

Trade between China and Latin America skyrocketed to $102.6 billion last year from $8.3 billion in 1999 and shows little sign of slowing.

China mainly imports soybean, copper, iron and wood from the region in return for IT technology, garments and electronics.

Chinese businesses have been strengthening investment in infrastructure, roads and harbors in the region in recent years.

China and Latin American countries need to improve their comprehensive cooperation as both sides are rising, Wang Zhen, an expert with the Foundation for International Studies and Academic Exchanges, said yesterday.

He added that China's trade with Latin American countries is still only a small part of the country's $2 trillion trade volume and thus has "great potential".

Beijing and its Latin American counterparts have pledged to enhance relations with free trade pacts.

China signed a free trade agreement with Chile in 2005, the first with a Latin American nation.

A similar free trade deal, between China and Peru, which has been discussed in past weeks, is expected to be signed during President Hu Jintao's visit to Peru this weekend.

Experts believe high-level visits between countries are also expected to further improve the country's relations with Latin American countries.

Xu Shicheng, a researcher with the Chinese Academy of Social Sciences, said: "For sure, Hu's visit to Latin American countries would strengthen ties with the whole region and further boost development."

Ahead of Hu's visit, China released on Nov 5 its first policy paper on Latin American and Caribbean countries.

The paper called for an expansion of trade and said China would give "positive consideration" to new free trade agreements with Latin American and Caribbean nations, and promote cooperation in other areas.

"The Chinese side wishes to expand and deepen mutually beneficial cooperation with Latin American and Caribbean countries in resources and energy within bilateral cooperation frameworks," it said.

(China Daily 11/19/2008 page6)