China-CELAC Forum Boosts Latin America Trade

China is set to host a summit on May 13th with several of its main Latin American and Caribbean trade partners, aiming to strengthen ties and expand its influence in the region. This comes as Beijing and Washington continue efforts to ease tensions in their ongoing trade dispute.

Among the attendees at the ministerial meeting of the China-CELAC Forum in Beijing will be the presidents of Brazil, Colombia, and Chile. The gathering underscores China's growing engagement with Latin America, particularly in areas such as trade, infrastructure, and investment under the Belt and Road Initiative.

Trade between China and CELAC countries reached USD427 billion during the first nine months of 2024, highlighting the bloc’s growing economic importance to Beijing. Chinese President Xi Jinping is expected to speak at the forum — marking a decade since the first such event.

The summit also follows recent progress in US-China trade discussions, where both sides signaled a willingness to deepen cooperation and reduce tensions, although strategic competition in Latin America remains evident.

China has recently stepped up efforts to bolster partnerships across various regions in response to the trade friction with the United States, encouraging multilateral cooperation and rejecting unilateral approaches. In parallel, Chinese officials have been holding high-level talks with several Latin American nations, emphasizing collaboration in trade and investment.

Beijing’s engagement in the region remains largely focused on commodities, with Brazil playing a key role. President Luiz Inácio Lula da Silva is expected in the Chinese capital during the summit, and a series of bilateral agreements are likely. China is Brazil’s top export destination, with trade centered on key raw materials like soybeans, iron ore, and crude oil.

Meanwhile, Chile is also looking to deepen its relationship with China, particularly in the lithium sector, while Colombia has expressed interest in joining the BRI, following Peru’s lead with the recent launch of a major port project. These developments come as attention builds toward the BRICS Summit in Brazil later this year.

Although some shifts are visible — such as Panama’s recent decision to step away from the BRI — the broader picture suggests China remains focused on consolidating long-term partnerships across Latin America, amid evolving global dynamics.