Chinese President Xi Jinping pledged 66 billion yuan, or about $9.2 billion, in new credit to Latin American and Caribbean nations during a summit in Beijing on Tuesday, reinforcing China’s growing economic influence in the region.
The funding, announced at the China-CELAC Forum, will be issued in Chinese yuan rather than U.S. dollars. China said the move promotes the international use of its currency and supports regional development. The credit will focus on infrastructure, energy, and industrial projects. Xi also vowed to increase Chinese imports from the region and encourage more outbound investment.
“We oppose the use or threat of force and the imposition of unilateral coercive measures,” Xi said. “We are committed to advancing a more democratic international order.”
Roughly 30 nations attended the forum. Two-thirds of Latin American countries have signed onto the Belt and Road Initiative, China’s global infrastructure and investment strategy. China is now one of the region’s top trading partners, especially for Brazil, Chile, and Peru.
Trade between China and Latin America has surged from $12 billion in 2000 to $515 billion in 2024, according to Chinese customs data. Nearly half of China’s imports from CELAC countries come from Brazil.
Xi said China would allow visa-free travel for five countries, though he did not name them. Leaders also signed a cooperation plan covering trade and development through 2027.
The announcement came days after China and the United States agreed to pause new tariffs for 90 days. While not naming the U.S., Xi criticized protectionist policies, saying, “There are no winners in tariff wars or trade wars. Bullying and hegemony will only lead to self-isolation.”
Some regional leaders warned against overreliance on foreign capital. “The fate of Latin America doesn’t depend on President Xi, the United States, or the European Union,” Brazilian President Luiz Inacio Lula da Silva said. “It depends on whether we want to be great or continue to be small.”
Lula and Xi later signed bilateral agreements covering agriculture, energy, and technology.
China’s growing investments in the region include electric vehicle manufacturing in Mexico and Brazil, as well as lithium mining projects in Argentina, Bolivia, and Chile. China also has trade deals with Chile, Costa Rica, and Peru. Its upgraded agreement with Peru is expected to boost trade by 50 percent.
Still, not all countries are fully aligned with Beijing. Panama, citing pressure from the United States, has said it will exit the Belt and Road Initiative. Haiti and Saint Lucia, which recognize Taiwan, attended the summit despite China’s diplomatic opposition to the island.
Analysts say the yuan-based credit may attract countries facing capital shortages, though it may not benefit those holding large amounts of dollar-denominated debt.
Xi closed the forum by saying China and Latin America share “a glorious tradition of independence” and likened their relationship to “a great, sturdy tree,” signaling China’s long-term intentions in the region.
