International Cooperation at China-CELAC Summit Reinforces Multilateralism Amidst Trade Disputes Globally
China-CELAC Forum Strengthens Ties and Focuses on Sustainable Development
The Community of Latin American and Caribbean States (CELAC) and China held their fourth ministerial summit in Beijing earlier this month, reaffirming their commitment to deepening cooperation, investments, and partnerships between China and Latin American and Caribbean States (LAC).
The China-CELAC Forum, established in 2014, has entered an active phase, with total trade between China and LAC reaching USD 518 billion in 2024. This strong commercial relationship emphasizes sectors like clean energy, digital economy, and artificial intelligence. China has also committed USD 10 billion in new credit lines for the region, focusing on clean energy and technological cooperation.
Historically, the forum’s strategic priorities have shifted from educational cooperation to infrastructure development, high-tech sectors, port expansion, and digital/financial infrastructure. The joint CELAC-China Action Plan of 2021 included a $9 billion regional credit line for infrastructure, poverty reduction, and digital transformation, promoting Chinese financial instruments such as Panda Bonds and RMB internationalization.
Implementation mostly occurs through bilateral agreements rather than forum-wide mandates. For example, Argentina’s participation in the Belt and Road Initiative (BRI) and specific infrastructure loans to Nicaragua have been handled bilaterally despite regional-level commitments from the forum. Brazil and Mexico, while major economies in the region, have not officially joined China’s BRI yet, though integration trends continue.
The forum’s cooperation mechanisms include ministerial meetings, national coordinators’ meetings, dialogues between foreign ministers, and multiple subforums on agriculture, technology, business, infrastructure, and political parties. The summit produced joint cooperation action plans covering a variety of areas, including sustainable development and cultural collaborations.
Future plans focus on expanding cooperation in clean energy, AI, and digital economy, with China pledging more credit and support for sustainable development in the region. Chinese investments are expected to shift toward more commercial, joint ventures and acquisitions, particularly in renewables and industrial production. The forum aims to maintain and deepen bilateral deals, leveraging the platform to support China’s broader strategic goals such as BRI, technology transfer, and RMB internationalization, while respecting Latin American countries’ sovereignty and individual approaches to cooperation.
The summit took place amid a cooling in the tariff war between the United States and China. Brazil issued a joint statement with China on the margins of the summit, agreeing to cooperate on projects related to the environment, energy transition, and science and technology, among other areas. Nicaragua signed four agreements with Chinese companies on the margins of the summit, including a deal with Yutong on electric vehicles and hydroelectric and mining deals.
Chinese President Xi Jinping announced a CNY 66 billion (US$9.15 billion) credit line to support development in CELAC countries, which is less than half the amount pledged at the 2015 summit. Xi Jinping emphasized the need for cooperation on clean energy, artificial intelligence, and the digital economy, and encouraged Chinese companies to expand investment in the region. Chile's President Boric claimed the time to take a qualitative leap forward in economic ties with China, while Brazil's President Lula advocated for strong trade with China and deeper cooperation on the energy transition.
The summit's topics align with the SDGs of Energy (7), Infrastructure (9), Cities (11), Climate (13), Peace (16), and Partnerships (17). The Chile-China Business Forum also took place in Beijing, with both countries indicating a willingness to collaborate on solutions to challenges facing the energy transition and the digital transformation. The China-CELAC Forum remains a key multilateral framework promoting China-LAC cooperation with expanding financial, technological, and infrastructure partnerships, underpinned by an increasing emphasis on sustainability and high-tech sectors in a multipolar global context.
- The China-CELAC Forum has entered an active phase, focusing on sectors like clean energy and digital economy.
- China has committed USD 10 billion in new credit lines for the region, focusing on clean energy and technological cooperation.
- The joint CELAC-China Action Plan of 2021 included a $9 billion regional credit line for infrastructure, poverty reduction, and digital transformation.
- Future plans of the forum focus on expanding cooperation in clean energy, AI, and digital economy.
- Chinese investments are expected to shift toward more commercial, joint ventures and acquisitions, particularly in renewables and industrial production.
- Topics discussed in the summit align with the SDGs of Energy, Infrastructure, Cities, Climate, Peace, and Partnerships.
- The China-CELAC Forum remains a key multilateral framework promoting China-LAC cooperation with expanding financial, technological, and infrastructure partnerships, underpinned by an increasing emphasis on sustainability and high-tech sectors in a multipolar global context.
