News Americas, NEW YORK, NY, Fri. Dec., 2016: Given Donald Trump’s campaign rhetoric, many experts are predicting a policy Of protectionism in trade relationships, especially with Latin America and the Caribbean. But while the US may again be pulling back from their ‘backyard neighbors, China is moving full steam ahead into this region. Here are five ways China says it will be expanding investments in the Caribbean and Latin America:
1: Industrial Investment and Capacity Cooperation
In a recent policy paper on Latin America and the Caribbean, the Chinese government said it will encourage its enterprises to expand and optimize investment in Latin American and Caribbean countries on the basis of equality and mutual benefit. The government also said it will be signing more agreements on investment protection, avoidance of double taxation and tax evasion with Latin American and Caribbean countries, so as to create favorable environment and conditions for investment cooperation between enterprises of both sides.
2: Financial Cooperation
China says it will support its financial institutions to strengthen business exchanges and cooperation with national, regional and international financial institutions in Latin American and Caribbean countries and further improve the construction of branch networks in the region. Efforts will be made to enhance dialogue and cooperation between the central banks and financial regulatory authorities of the two sides, expand cross-border local currency settlement, discuss RMB clearing arrangements, and steadily promote monetary cooperation, the government said in its policy paper on the region recently. On the basis of bilateral financial cooperation, and giving full play to the role of China-Latin America Cooperation Fund, concessional loans, special loans for Chinese-Latin American infrastructure, China-Latin American Production Capacity Cooperation Investment Fund, and relevant financing arrangements between China and Caribbean countries, China will actively explore cooperation forms including insurance and financial lease, continuously expand cooperation with regional financial institutions in Latin America and the Caribbean, and support cooperation in key areas and major projects between the two sides.
3: Energy and Resources Cooperation
China says it wishes to expand and deepen cooperation in the fields of energy and resources with Latin American and Caribbean countries based on the principle of win-win cooperation and sustainable development. Efforts will be made to bring cooperation to upstream business such as exploration and development, so as to consolidate the foundation for cooperation and expand resources potentials; and at the same time, cooperation will be extended to downstream and supporting industries such as smelting, processing, logistics trade and equipment manufacturing, so as to improve added value of products. China says it is ready to actively explore with Latin American and Caribbean countries the establishment of mechanisms for long-term supply of energy and resources products and local currency pricing and settlement, to reduce the impact of external economic and financial risks.
4: Infrastructure Cooperation
China says it will strengthen cooperation on technical consultation, construction and engineering, equipment manufacturing and operation management in the fields of transportation, trade logistics, storage facilities, information and communication technology, energy and power, water conservancy, housing and urban construction. China will also support and encourage competent enterprises and financial institutions to actively participate in the planning and construction of logistics, power and information passages in Latin American and Caribbean countries, and actively explore new ways of cooperation, such as the Public-Private Partnership (PPP) model, so as to promote the connectivity of infrastructure in Latin America and the Caribbean.
5: Tourism Cooperation
The Chinese government says it will encourage tourism authorities and enterprises on both sides to introduce tourism resources and products to each other and expand tourism cooperation. China says it will explore and issue more facilitation policies to promote two-way tourism, and support the negotiation for more direct flights between aviation authorities of the two sides and strengthen dialogue and cooperation with consumer protection departments of Latin American and Caribbean countries, with priority given to the protection of consumer rights of international travelers.
Photo: President of the People’s Republic of China, Xi Jinping talks during a meeting in the Patio de Las Camelias at Palacio de La Moneda on November 22, 2016, Santiago, Chile. (Photo by Sebastián Vivallo Oñate/Agencia Makro/LatinContent/Getty Images)
By NAN Business Editor