The fifth China-Latin America International Forum was jointly sponsored by the Institute of Latin American Studies at the Chinese Academy of Social Sciences and CAF-Development Bank of Latin America.

 

Despite diminishing demand from China for Latin America in the areas of economy and trade, scholars have described bilateral relations as “on the way up” at the fifth China-Latin America International Forum on May 15 in Beijing.

China and Latin America have made substantial progress in recent decades on economic, political and cultural fronts, said Li Peilin, vice-president of the Chinese Academy of Social Sciences (CASS).

Former Panamanian President Martín Torrijos said China continues to be a significant contributor to economic growth and poverty alleviation in Latin America, noting China-Latin America trade volume soared from $12 billion to $55 billion and Chinese investment in Latin American countries jumped from $250 billion to $550 billion from 2012 to 2013.

“The growth is impressively huge,” Torrijos said.
 

However, reduced demand from China has had a negative impact on Latin American economies, prompting speculation that China-Latin America relations have reached a “crossroads.”
 

Chai Yu, a research fellow from the Institute of Latin American Studies at CASS, defined the falling demand as a follow-up effect of the 2008 global financial crisis, which nevertheless highlights China’s important role in the Latin American region.
 

“In the past, the US and European countries were major partners of Latin America, but China has had excitingly great significance in the economic development of the region,” Chai added.
 

“China and Latin America have great potential for economic and trade cooperation,” said Rodrigo Soares, a professor from the Sao Paolo School of Economics in Brazil.
 

Mario Pezzini, head of the Development Center at the Organization for Economic Cooperation and Development, noted that Latin America is in a critical historical period, as the emergence of a new middle class necessitates change in state governance.
 

However, due to lingering impacts of the global financial crisis, infrastructure investment in Latin America is 13 percent lower than the global average, Pezzini said, expressing hope that China-Latin America cooperation could spur further development in the region.

 

Zhang Junrong is a reporter at the Chinese Social Sciences Today.