In 2016, MOFCOM comprehensively implemented the spirits of the 18th CPC National Congress, the third, fourth, fifth and sixth Plenary Sessions of the 18th CPC Central Committee, made in-depth study and carried out the speech spirits of General Secretary Xi Jinping. Following the unified deployment of the central committee and the State Council, MOFCOM continuously promoted the complementarity of China-Latin American countries’ economic and trade cooperation to transform to practical cooperation in economy and trade, so as to further consolidate the economic and trade relation pattern between China and Latin American countries which is mutually supportive and will promote mutual development.

High-level mutual visits promoted the economic and trade cooperation between China and Latin American countries to step to a higher level and wider scale. In November 2016, President Xi Jinping made state visits to Ecuador, Peru and Chile, and attended the 24th APEC Economic Leaders’ Meeting in Lima, Peru. During his visit to Latin America, President Xi Jinping put forward that China and Latin America should, under the new frame work of practical cooperation of “1+3+6”, drive new growth through trade, bolster new development through investment, provide new supports through financial cooperation, generate new engine through industrial connection, create new opportunities through overall cooperation, promote the development of China-Latin American Forum and strengthen cooperation with Latin America in different sub-regional organizations. These ideas pointed out the direction for the two parties to realize mutual benefits and win-win at a higher level, in wider space and on a deeper layer in economy and trade. During President Xi Jinping’s visit to the three countries, China signed a series of agreements with the three countries in economy and trade, injecting new motivation to further deepen economic and trade cooperation with the three countries. In September 9, during Premier Li Keqiang’s visit to Cuba, China and Cuba reached a series of consensus in economy and trade, promoting further development of China-Cuba practical cooperation in economy and trade.

Besides, leaders of Peru, Uruguay, Brazil, Argentina and Mexico visited China or attended activities in China. Through visiting, the two parties further strengthened political mutual trust, and consolidated foundation for reciprocal cooperation.

China was still an important trade partner of Latin American countries. In 2016, trade between China and Latin American countries was US$ 216.6 billion, down 8.4% year on year. The trade volume decreased, but the quantity of goods China imported from Latin American countries didn’t change much. China’s status as a foreign trade partner of Latin American countries was still steady. China was still the largest import country of Latin America in energy and mining products and agricultural products. Varieties of agricultural products trade increased continuously. In 2016, China was the largest import country of Latin America in soybean and sugar.

Investment in Latin America kept increasing with more diversified modes and wider scale. According to the initial statistic of the Ministry of Commerce, in 2016, China’s non-financial direct investment in Latin America was US$ 29.8 billion, up 39% year on year. China’s investment patterns and subjects in Latin America were even diversified and large-scale merger and acquisition projects sprung up. The investment scale was expanded from traditional scales like energy and mining and infrastructure to bigger scales including finance, agriculture, manufacturing, information industry, service industry, e-commerce and air transportation.

Project contracting was generally steady, and the cooperation mode was innovated continuously. In 2016, the contract volume of contracting projects signed by Chinese enterprises in Latin America was US$ 19.12 billion, up 5.3% year on year. The complete turnover was US$ 16.03 billion, down 2.3% year on year. The Chinese enterprises not only continued the cooperation with Latin American countries in infrastructure through traditional EPC mode, but also began to try BOT to conduct cooperation with Latin American countries.

Cooperation on FTA construction gained fruitful achievements. The implementation of FTAs signed by China with Chile, Peru and Costa Rica went well. In November 2016, during President Xi Jinping’s visit to Latin America, China announced to conduct the upgrading negotiation of China-Chile FTA and the joint study of the upgrading of China-Peru FTA. The joint feasibility study of China-Colombia FTA was also positively on the way. Uruguay also put forward to carry out FTA cooperation with China.

Financial measures helped the implementation of large projects. The implementation of financial measures announced by Chinese leaders when visiting Latin America gained positive progress in 2016. Up to now, many projects under China-Latin America Cooperation Fund, privilege loan and China-Latin America special loan for infrastructure were promoted orderly. Under China-Latin America capacity cooperation fund, Chinese enterprises have won the bid for the franchise rights of two Brazil hydropower station.

The implementation and promotion work of the above projects bolstered China-Latin American cooperation on infrastructure construction, development of resources and energy, electric power, agricultural cooperation, manufacturing industry, marine engineering equipments and biotechnology.

The bilateral economic and trade consultation mechanism was practical and effective. Since 2016, China and Latin America consecutively held China-Uruguay, China-Argentina, China-Cuba, and China-Ecuador Joint Committee on Economy and Trade, as well as the 7th China-Mexico High-Level Working Group Meeting. Through the above consultation mechanism, the two parties had discussions and communications on the problems and major concerns existing in bilateral economic and trade cooperation.

The 2nd China-Latin American Infrastructure Cooperation Forum was held successfully. The 2nd China-Latin American Infrastructure Cooperation Forum was held in June 2016 in Macao, which bolstered China-Latin American communication and cooperation on infrastructure.

2017 is a major year for the implementation of the 13th five-year plan and also a year to deepen the supply-side structural reforms. The Ministry of Commerce actively promotes bilateral economic and trade development with Latin American countries, and implements the market diversification strategy and the “going out” strategy, so as to promote the upgrading of China-Latin America economic and trade cooperation mechanism and greet the 19th CPC National Congress with good achievements.

(All information published on this website is authentic in Chinese. English is provided for reference only.)