China in Latin America: September 2024

Chinese Migration: According to AP, thousands of Chinese migrants are moving to Mexico. In 2023, the Mexican government issued 5,070 temporary residency visas, double the number of the previous year.

Beijing Increases Trade: Paraguayan Foreign Minister Rubén Ramírez Lezcano said that Mercosur, the South American trade bloc, would be willing to negotiate a free trade agreement with China if it addresses the trade deficit between the country and the bloc. Peruvian President Dina Boluarte denounced the presence of Chinese vessels fishing illegally in Peruvian waters. The Peruvian government’s antidumping measure against imports of Chinese taffeta, a type of fabric, and polyester also went into effect in September. Meanwhile, in Chile, the Anti-Distortions Commission concluded that China was not dumping Chinese steel into the Chilean market and that the Chilean government should withdraw tariffs on the import of Chinese steel.
 

The Honduran government reached an agreement with its Chinese counterparts on Honduran exports of fresh melons to China. Ecuador’s Agricultural Minister Danilo Palacios also announced that the South American country would soon begin exporting milk products to China and that China’s Vice Minister of Customs would be visiting Ecuador later in September. 

On September 19, Republican U.S. Senator Marco Rubio proposed enacting a measure to bar Chinese manufacturers from evading tariffs by placing factories in other countries, such as Mexico.

New Investments: Chinese electric vehicle maker BYD paused its decision on whether it will build a car production facility in Mexico until after U.S. elections in November. In Bolivia, the government’s state-owned lithium company announced that China’s CBC was on a shortlist of four companies to advance to the next phase of a bid to develop several lithium extraction plants in Bolivia. In Venezuela, the national assembly ratified a new investment deal with China. Although few details have been published about the deal, it is likely to focus particularly on Venezuela’s special economic zones and on additional protections for Chinese investments in the country. 

On September 8, Honduras’s Tourism Institute announced that Honduras had been included as one of the major destinations for Chinese tourists. From September 12 to 14, China hosted the fourth Ministerial Conference of the China-Caribbean Economic and Trade Cooperation Forum in Qionghai, Hainan Province. During the conference, Guyana’s Minister of Foreign Affairs Hugh Todd signed memoranda of understanding on trade facilitation and green development with China’s Vice Minister of Commerce and International Trade Representative Wang Shouwen.

The South China Morning Post reported that the Brazilian government has formed an interministerial working group to assess Brazil’s entry into the Belt and Road Initiative (BRI), with the expectation that Brazil will formally join the BRI in November when Xi visits the South American country. Brazil is also analyzing the potential impact BRI membership will have on U.S.-Brazil relations, especially if former President Donald Trump wins in November. Lastly, the Boston University Global Development Policy Center published a new working paper examining the determinants of Chinese development financing in Latin America between 2008 and 2019.

The South China Morning Post reported that the Brazilian government has formed an interministerial working group to assess Brazil’s entry into the Belt and Road Initiative (BRI), with the expectation that Brazil will formally join the BRI in November when Xi visits the South American country. Brazil is also analyzing the potential impact BRI membership will have on U.S.-Brazil relations, especially if former President Donald Trump wins in November. Lastly, the Boston University Global Development Policy Center published a new working paper examining the determinants of Chinese development financing in Latin America between 2008 and 2019.

Deeper Security Integration: Chinese troops participated in Brazil’s annual Operation Formosa military exercises the week of September 10, where U.S. troops were also participants. On September 9, Nicaragua’s Police Chief Francisco Díaz had met with China’s Public Security Minister Wan Xiaohong to discuss deepening cooperation on matters of public security. The two sides signed an agreement under which China pledged to provide technical assistance to Nicaragua’s police force to help it combat terrorism, narco-trafficking, and cybercrimes. 

Beijing’s Diplomacy: At the UN General Assembly (UNGA), Brazilian President Luiz Inácio Lula da Silva announced that Brazil and China had proposed a six-point plan to initiate a peace dialogue between Russia and Ukraine. Also during UNGA, Chinese Foreign Minister Wang Yi met with his counterpart in Panama, Javier Martínez-Acha, where the Chinese foreign minister reaffirmed the importance of ties between their two countries. Earlier in the month, Brazil hosted the first China-Latin America and Caribbean States Roundtable on Human Rights in Rio de Janeiro. 

In Nicaragua, the government of Nicaraguan autocrat Daniel Ortega inaugurated a new Confucius Institute at the National Autonomous University in Managua. Rosario Murillo, Nicaragua’s vice president and Ortega’s wife, and Laureano Ortega Murillo, Ortega’s son, presided over the event.