On May 13, 2023, Chinese President Xi Jinping convened an instructive meeting in Beijing. He has helped to unite leaders from across Latin America through the China-CELAC Forum. The convening came at a particularly pivotal time, with leaders like Brazilian President Luiz Inacio Lula da Silva on hand. The United States is increasing its own activity in the region. This diplomatic initiative couldn’t come at a better time, as that pressure is starting to intensify.
During the forum, Xi Jinping announced a substantial credit line of 66 billion yuan, equivalent to approximately $9.2 billion, aimed at supporting Latin American leaders. China’s $60 billion financial commitment at the summit underlines Beijing’s growing grip on regional politics. It is a demonstration of the country’s desire to deepen partnerships as geopolitical dynamics change.
The China-CELAC Forum served as a platform for Xi Jinping to showcase his commitment to bolstering ties with Latin America. He took the time to take a photo with fellow South American leaders, projecting unity and collaboration among all of the countries taking part. For China, this meeting represented a significant opportunity to deepen economic and political connections with countries in the Southern Hemisphere.
The timing for this convening couldn’t be better. It follows closely on the heels of Beijing and Washington reaching a deal to suspend their three-month-long trade war. That agreement was reached just days before the convening. It was a major blow to U.S. interests and to China’s soft power push in Latin America. As the U.S. increases its push on the Indo-Pacific, Xi is countering. His promise of a credit line might be interpreted as an attempt to provide an alternative to American domination.
Xi Jinping’s personal engagement with Latin American leaders underscores a deep commitment to the effort at hand—to expand China’s footprint beyond its borders. The credit line is expected to facilitate investments in various sectors, potentially benefiting infrastructure projects and trade initiatives across Latin America.