During a call between Foreign Ministers of China and Latin America on COVID-19 in July, Foreign Minister Wang Yi stressed that China will not disregard the strategic importance it places on relations with Latin America. He put forward five proposals for strengthening the multilateral cooperation, including sending medical assistance and advancing BRI cooperation.
Currently, a number of BRI projects around the world and Latin America are halted, such as cooperation in lithium extraction in Argentina and Chile. Similarly, fewer infrastructure proposals have been put forward by Chinese contractors [Coronavirus reshapes Belt and Road in Latin America].
In the long term however, countries in the region will be in search of a strategy to reignite their economies and finance for infrastructure, energy, and development will be needed more than ever. If China expresses willingness to fill the financial void, its appeal as a partner may increase further. Strategic gains are even more likely if China engages in a debt relief program for the region, which has a significant debt exposure to China [China alone can’t solve Latin America’s looming debt crisis]. Ultimately, China may exploit the difficult present position of the region in order to negotiate from a position of strength on other strategic matters such as 5G technology development.
Mirela Petkova
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