The Chinese offensive in Latin America

November was marked by Asia’s presence in Latin America. Asia-Pacific leaders met in Peru at the APEC 2008 summit and China focused on highlighting its interest in Latin America.

In an unprecedented move, the Beijing published Chinese policy toward Latin America and the Caribbean, an official government document which explains the regime's approach to strengthening ties to the region's nations. The document begins with a positive take on Latin America, a novel approach to regional analysis. It states “Latin America and the Caribbean have huge potential given the region’s long history, vast territory, abundant natural resources and excellent foundation of socio-economic development." It is clear that the document aims past a strictly short-term, commercial view, and at a more permanent commitment to long-term regional development.

On Nov. 16, President Hu Jintao embarked on a tour of Latin America and the Caribbean, thereby reinforcing the political will expressed in the document. The Chinese leader’s trip, which began in Costa Rica, was full of gestures, such as the gift of a 35,000-seat football stadium, which was presented in light of Costa Rica’s ending 60 years of Taiwanese recognition last year. The two nations also began FTA negotiations, the region’s third after Chile and Peru.

The head of the People's Republic then traveled to Cuba. As per its usual treatment of their old ally, China was generous with Cuba. It not only granted loans, donations and significant humanitarian aid for hurricane victims, but also extended the deadlines for payment of various debts incurred in the 1990s.

Finishing his tour, Hu Jintao arrived in Lima on a visit which was not limited to APEC issues. It also included the signing of a Peruvian free trade agreement and the possible sale of a Chinese satellite to Peru.

Thus, the Asian giant surprised South America this month with a strong diplomatic foray, which clearly illustrated elements of its Latin America/Caribbean policy: One-China policy (Costa Rica), cooperation (Cuba), and commercial ties (Peru).

China has already completely surpassed its goal of having $100 billion in Latin American trade by 2010. Thus, Latin America is clearly a promising commercial opportunity for China. It can also meet part of its high demand for commodities. Not to mention there is less prejudice and fear towards China than in other regions. This positive attitude, in the form of less stringent regulation, facilitates trade and investment.

Likewise, the Chinese reticence to influence Latin American politics has reduced concern in Washington about the growing Chinese presence in a region usually considered within its sphere of influence.

Everything seems to indicate that China will be around for a long time in Latin America.