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ViewpointNovember 1 2019

How mutual trust and respect will enhance the Latam-China relationship

Latin America’s increasing interest in attracting Chinese investments, tourists and commerce is matched by China’s growing presence in the region, says Panama's former vice-president and foreign minister.
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Isabel de Saint Malo

Isabel de Saint Malo

Latin America’s infrastructure gap and its need for public hospitals, schools, water and sanitation, and many other such services, is prompting the region’s governments to strive to attract increasing levels of foreign direct investment. China is a strong partner in these efforts and this relationship is continuously discussed in official forums.

The Community of Latin American and Caribbean States, a group that brings together all 33 Latin American and Caribbean countries for high-level political dialogue, has scheduled meetings with China every three years since 2015. 

And as of 2009, China has been part of the Inter-American Development Bank (IADB), contributing $350m to various programmes in that year alone. (China was also the chosen host of the IADB’s 2019 Annual Meeting of the Board of Governors; however, plans were changed because of Beijing’s refusal to grant a visa to Juan Guaidó, who is recognised by many Latin American countries and the US as the legitimate president of Venezuela.)

Mutual benefits 

The China International Import Expo, held in Shanghai for the first time in 2018, attracted several Latin American countries: Argentina, Bolivia, Chile, Costa Rica, Cuba, the Dominican Republic, Panama, Peru, Uruguay, Venezuela and several Caribbean nations were among the 50 countries present. Efforts by China to include Latin American partners in the Belt and Road Initiative are also evident, with Latin American countries sharing a reciprocal interest.

China has defined a coherent and specific policy to increase influence over global governance in order to support its efforts to be a “moderately prosperous society” by 2020, and a developed country by 2035, as stated by official documents. Its position that the development of China cannot be possible without the development of other countries is also central to this vision. 

It is important to understand the context of this new relationship that is being built with China: the clear differences of systems regarding the values of human rights and democracy, as well as the shared vision regarding the importance of multilateralism and of collaboration to build a better world, to increase people’s quality of life and to overcome poverty and exclusion.

If we are able to recognise our differences, express them and build a relationship based on that understanding, we will be working towards our own priorities and agendas. It is important to recognise that we can agree on many things, but more importantly, that we can disagree on many others and then agree to disagree in order to move forward.

Latin America is still developing, it needs to realise opportunities where they exist, it needs to continue to work to close the infrastructure gap. Each country needs to define economic areas with which to work with China and define its own strategy, according to their own interests and priorities. The support of specialised institutions that have gathered knowledge on the subject could be strategic to the effort. 

Historical ties

In 2017, the government of then president Juan Carlos Varela in Panama took the historic step of signing diplomatic relations with China, but the ties between the two countries long preceded this moment. Chinese workers arrived in Panama in the 1850s to build the interoceanic railroad. Many stayed and their descendants are part today of the Panamanian population: a hardworking, strong business community that reminds us constantly of our valuable heritage as a multi-ethnic society.

The signature of the agreement prompted Panama to design a national agenda of the issues of importance to our country, which we would prioritise bilaterally. Tourism, commerce and investment are among the issues incorporated within the agenda. As a result, a number of framework agreements on all of these areas have been signed and are under implementation. 

Future high-level exchanges will happen and Chinese companies will continue to make efforts to increase their presence in the region, just as Latin America will continue to strive to promote investments, commerce and other types of exchanges. One of the barriers is the difference in culture, which highlights the importance of continuing exchanges that promote better understanding of Latin America's culture by China and vice versa.

This is what the world needs: global collaboration, increased exchanges and co-operation, as the basis to achieve progress and inclusion, where there are opportunities for all, in order to reach the agreed upon UN Sustainable Development Goals agenda that strives to 'leave no one behind'.

Isabel de Saint Malo is the former vice-president and foreign minister of Panama.

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