Trade Cooperation Between China and Latin America is Reciprocal, with No Strings Attached, MOFCOM Says
Xu Wei
DATE:  Feb 08 2018
/ SOURCE:  Yicai
 Trade Cooperation Between China and Latin America is Reciprocal, with No Strings Attached, MOFCOM Says Trade Cooperation Between China and Latin America is Reciprocal, with No Strings Attached, MOFCOM Says

(Yicai Global) Feb. 8 -- Economic and trade cooperation between China and Latin America is reciprocal and mutually beneficial, with no strings attached, China's commerce ministry said in response to a recent accusation made by U.S. secretary of state Rex Tillerson.

MOFCOM has rubbished claims made during Tillerson's visit to five Latin American countries that China is a "predatory actor" in the region, while the U.S. is its "most enduring" partner. Tillerson labeled China a "new imperial power" due to its investments and business activities in Latin America.

The proportion of Latin American exports to China has increased from 1 percent to 10 percent in the last seven years, and China has become the third largest export market in the region, said Gao Feng a spokesperson at China's commerce ministry in a regular press briefing. 

Since 2014, China has been the second-largest trading partner of goods in Latin America, statistics and estimates from the Economic Commission for Latin America and Caribbean show.

Imports from China have increased from 2 percent to 18 percent. China has become the second largest source of imports for the region, Gao said.

Direct investment from China to Latin American countries was about USD90 billion from 2005 to 2016, accounting for about 5 percent of the total foreign investment in the region over that period. Chinese investments in Latin America were worth more than USD25 billion in 2017, accounting for 15 percent of the total, Gao said, citing CEPAL data.

Chinese investment in Latin America is also diversifying. Investment in the mining and energy sectors made up some 42 percent and 18 percent, respectively, of China's investment in the region from 2004 to 2010. However, these proportions in the two sectors fell to 20 percent and 6 percent during 2011 to 2017. China also invests in communications, real estate, food and renewable energy in Latin America, greatly improving infrastructure in the region and giving more options for local consumers, Gao said.

Tillerson's remarks not only distorted the facts, but even gave praise to the Monroe Doctrine, which had governed U.S. foreign policy towards Latin America during the 19th century, Gao added. The approach has previously drawn wide criticism from Latin American countries.

China will always uphold the principle of equality and mutual benefits in undertaking projects with Latin American countries, Gao said, adding that the country will not promote its own development at the expense of the others. 

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Keywords:   US,Latin America,MOFCOM