The development of relations between latin american and Caribbean countries and China

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The development of relations between latin american and Caribbean countries and China

Oleh Oliinyk,

Ph. D. (Economy), Leading Research Fellow,

State Institution «Institute of World History of NAS of Ukraine», Kyiv, Ukraine

Олег Олійник, кандидат економічних наук, провідний науковий співробітник, ДУ «Інститут всесвітньої історії НАН України», м. Київ, Україна

РОЗВИТОК ВІДНОСИН МІЖ КРАЇНАМИ ЛАТИНСЬКОЇ АМЕРИКИ ТА КАРИБСЬКОГО БАСЕЙНУ ТА КИТАЄМ

Анотація

Опинившись в міжнародній ізоляції після утворення КНР, лідери цієї країни обирають курс на розбудову відносин з країнами що розвиваються, в тому числі з країнами Латинської Америки та Карибського басейну, які своєю чергою підтримали наміри китайського керівництва. Сторони знайшли прийнятний для сторін формат співробітництва як у політичній так і торгово-економічній сферах. Співробітництво між Китаєм та ЛАКБ сприяє багатополярності та демократії в міжнародних відносинах, посилює голос країн, що розвиваються, у міжнародних справах, а також захищає спільні інтереси обох сторін, а також інших країн, що розвиваються.

Метою статті є спроба з 'ясувати передумови формування відносин між країнами Латинської Америки та Карибського басейну та Китаєм, їх генезис та вплив на соціально-економічний розвиток сторін та формування нової парадигми відносин. Як основний метод дослідження було застосовано історичний метод, що дало змогу вивчити виникнення, формування та розвиток основних історичних подій у відносинах між країнами Латинської Америки та Карибського басейну та Китаєм у хронологічній послідовності. Також було застосовано порівняльно-історичний метод, що допомогло шляхом порівняння встановити зміст, форми, напрями та перспективи відносин між країнами Латинської Америки та Карибського басейну та Китаєм.

Наукова новизна статті полягає у поглибленому аналізі інструментальних, концептуальних основ та практичних аспектів розвитку відносин між країнами Латинської Америки та Карибського басейну та Китаєм, а також у прогнозуванні потенційних тенденцій розвитку відносин між сторонами.

Висновки. Завдяки поступовості та продуманості політики розбудови двосторонніх відносин між країнами Латинської Америки та Карибського басейну та Китаєм сторони змогли побудувати дієві, проте в той самий час прагматичні відносини на засадах довіри, рівності та взаємної вигоди.

Ключові слова: відносини між ЛАКБ та Китаєм, Форум Китай - СЕЛАК, торгівля, економічні зв 'язки, енергетика, туризм.

Abstract

Faced with international isolation after the establishment of the People's Republic of China, the country's leaders have chosen to build relations with developing countries, including Latin American and the Caribbean, which in turn have supported the intentions of the Chinese leadership. The parties found an acceptable format for cooperation in both political and trade and economic spheres. Cooperation between China and the LAC promotes multipolarity and democracy in international relations, strengthens the voice of developing countries in international affairs, and protects the common interests of both parties and other developing countries. The objectives of the proposed article are to try to clarify the preconditions for the formation of relations between Latin America and the Caribbean countries and China, their genesis and impact on the socio-economic development of the parties and the formation of a new paradigm of relations.

The methods we employed to do the research: the historical method which allowed to study the origin, formation and development of major historical events in the relations between Latin America and the Caribbean countries and China in chronological order; the comparative- historical method which helped to establish the content, forms, directions and perspectives of relations between Latin America and the Caribbean countries and China by comparison. The scientific novelty of the article lies in the in-depth analysis of the instrumental, conceptual foundations and practical aspects of the development of relations between Latin America and the Caribbean countries and China, as well as in forecasting potential trends in relations between the parties. Conclusions. Thanks to the gradual and well-thought-out policy of building bilateral relations between Latin America and the Caribbean countries and China, the parties were able to build effective, but at the same time pragmatic relations based on trust, equality and mutual benefit.

Key words: relations between LAC and China, China-CELAC Forum, trade, economic relations, energy, tourism. latin american international isolation

Problem statement. The development of China's relations with Latin America and the Caribbean countries (hereinafter - LAC) began almost immediately after the formation of China in 1949. Relations between China and the LAC have strengthened after Chinese leaders decided to close large-scale relations with the Soviet Union and declared a policy of non-alignment. The main focus of foreign policy has been shifted to building relations with developing countries. Enhancing solidarity and cooperation with other developing countries is a cornerstone of China's independent foreign policy. The development of relations with LAC has become the embodiment of China's new foreign policy.

Following the proclamation of the policy of reform and openness at the11th Plenum of the Chinese Communist Party (CCP) Central Committee in December 1978, the China's foreign policy theory and principles were adjusted with emphasis on the principles of peaceful coexistence in the development of international relations, namely: principles of independence, full equality, mutual respect and non-interference in the internal affairs of other countries. China's new foreign policy course has influenced China's cooperation strategy with the LAC countries. If at the beginning of the development of relations with the LAC, the Chinese leadership maintained relations through the communist parties of the region, then after the change of foreign policy, relations also developed with the democratic parties of the LAC.

In March 1979, a CCP delegation visited Mexico at the invitation of the Mexican Institutional Revolutionary Party on the occasion of the party's 50th anniversary. In the 1980s, the CCP established contacts with the center-right Colombian Conservative Party. In the 1970s and 1980s, China established diplomatic ties with most countries in the region.

Analysis of the latest research and publications. The development of China's cooperation with the LAC countries has contributed to the strengthening of research activity of scientists from both countries. In their works, the authors give an objective assessment of the state of bilateral cooperation, highlighting the achievements, problems and promising areas of cooperation. Ukrainian researchers are also studying this topic in particular Victor Kaspruk, Kateryna Vakarchuk and others.

Studies on this topic are conducted by Barcen Alicia, Cimoli Mario, Garcia- Buchaca Raul, Shaw Sally Shaw [5], Pedro Lago, Yang Wang [13], Mark P. Sullivan [16],Wu Ju [17], Pedro Lago, Wang Yang [13], Zhang Yong [21], Bai Shi [4], Michael Zarate [18, 19, 20], An Gang [3], Fu Zhibin [10], Hongying [17],

Anabel Gonzalez [11], Julian Ventura [16], Brian Harris, Andres Shipani, Lucy Hornby, Zhang Archie [12], Victor Kaspruk [2], Kateryna Vakarchuk [1].

The topic of relations between China and the LAC countries is the focus of attention of both Chinese and LAC scientists, as well as world research centers. In this context, the report «China - LAC Trade: Four scenarios in 2035 », conducted by a group of researchers from the Atlantic Council, which included the following individuals: Tatiana Prazeres, Pepe Zhang, David Bohl. This report explored four scenarios, based on different - but plausible - assumptions and corresponding outcomes. In an attempt to identify some common threads across different scenarios, surprising and interesting developments emerged. Here are the main takeaways and recommendations for policymakers and other stakeholders in LAC, China, and the United States, seen through the three main analytical lenses of the report (trade partners, sectors, and balance). Regardless of who comes in first in 2035, a key finding of this exercise is that China is still gaining ground in LAC trade, and is likely to continue to do so through 2035. The scenarios estimate that, by then, China's participation in overall LAC trade may range from 15 to 24%. While a participation around one quarter of the region's trade may not look particularly high, the fact that China accounted for less than 2 % of LAC trade in 2000 makes the 2035 mark stand out. Remarkably, across all four scenarios, the United States' relevance as a destination of LAC exports declines. In terms of sectoral composition, a striking feature of LAC - China trade in 2035 is the likely decline of agriculture in the region's total exports to China. Countries across LAC should prepare for this and other shifts in the profile of their exports to China [13].

Mark P. Sullivan from the Congressional Research Service (CRS) also explored China's involvement in the LAB. The results of the study were presented in the report China's Engagement with Latin America and the Caribbean. In the study, the author reveals the parties' goals and benefits of cooperation. China's economic goals in LAC include securing access to raw materials (such as oil, ores, and minerals) and agricultural goods (especially soybeans); establishing new markets for Chinese goods, including high value-added products; and partnering with Latin American firms to access and develop technology. China also has sought to secure investment opportunities in Latin America for its infrastructure firms. Just as Latin America's economic linkages with China helped the region withstand the 2008 global financial crisis, China's post-COVID-19 economic rebound could play an important role in Latin America's post-pandemic recovery. Under the George W. Bush and Obama Administrations, U.S. officials, while recognizing concerns about China's influence, generally viewed China's engagement in LAC positively. The overarching goal of U.S. policy was for China to contribute economically to the region in a transparent fashion, following international rules and complying with local or international labor and environmental standards. From 2006 to 2015, the United States and China held seven bilateral consultations on Latin America. In the 117th Congress, the Senate passed S. 1260 on June 8, 2021, which would address issues related to U.S. competition with China worldwide and includes numerous LAC provisions. The bill includes provisions requiring a multiyear strategy for increasing U.S. economic competitiveness and promoting good governance, human rights, and the rule of law and a report assessing China's engagement with international organizations and the defense sector in the region [15].

The 2021 version of Foreign Direct Investment in Latin America and the Caribbean is the most recent edition of an annual series produced by the Unit on Investment and Corporate Strategies of the Division of Production, Productivity and Management of the Economic Commission for Latin America and the Caribbean (ECLAC). This research was conducted by Alicia Barcen, Mario Cimoli, Raul Garcia-Buchaca, Sally Shaw. In this report, the researchers presented an analysis of the directions, forms and methods of China's direct investment in LAC in both retrospective and prospective approaches. Ten years ago, when investments by Chinese companies were beginning to gain prominence in the region, they were highly concentrated in the hydrocarbon and mining sectors. Today, China's international position has changed immensely: the country has positioned itself as one of the world's major powers, a conflict for technological hegemony with the United States has arisen and its relations with the region have become more complex. Today, Chinese investments no longer target only mining and hydrocarbons; however, they remain concentrated in a small number of activities deemed strategic in China's internationalization plans, with large acquisitions in the electricity sector and full or partial acquisitions for accessing strategic minerals such as copper, lithium and niobium. The region's countries are facing a scenario in which they will be required to rethink how best to negotiate the involvement of Chinese companies, what tools they should use and what shape such participation should adopt [5].

The purpose of the article. The purpose of the study, the results of which are presented in this article, is as follows: to determine the motivation of the leaders of China and the LACB to build relations; identification of tools, forms and methods of cooperation between China and the LAC; proving the prospects for the development of relations with developing countries and the effectiveness of multipolar diplomacy.

The main text of the article. Friendly cooperation between the two sides in various fields increased significantly in the 1990s. A new stage in Sino-Latin American relations came in 1990, when Chinese President Yang Shankong toured the LA countries, visiting Mexico, Brazil, Argentina, Uruguay and Chile. During the meetings with the leadership of these countries, the President of the People's Republic of China expressed his desire to develop cooperation with the LAC. During the meetings with the leadership of these countries, the President of the People's Republic of China expressed his desire to develop cooperation with the LAC countries. In 1996, the Minister of Foreign Economic Relations and Trade of China Wu Yi visited the LAC. During the month, the minister, surrounded by Chinese businessmen, visited the LAC. During this visit, the foundations of China's economic and investment cooperation with the LAC were laid. Since 1993, China has established strategic partnerships with 9 LAC, including Brazil, Mexico, Argentina, Venezuela, Peru, Chile, Ecuador, Costa Rica and Uruguay.

Recognizing the importance and prospects of China's relations with the LAC, in 2008 the Chinese government developed a policy document «China's Policy toward Latin America». This is the first political document that defined China's policy towards the entire region. According to it, the Chinese government considers its relations with the LAC from a strategic level and seeks to build and develop a comprehensive and joint partnership with the LAC on the basis of equality, mutual benefit and joint development. The document identified the following objectives:

Promote mutual respect and trust and expand common language. Based on the five principles of peaceful coexistence, China and the LAC will treat each other as equals and respect each other. The Parties will strengthen dialogue and communication, political mutual trust, broaden the common strategic framework and continue to show understanding and support on issues related to each other's main interests and major issues.

Deepen cooperation and achieve win-win results. The Parties will use their strengths, cooperation potential and seek to partner with each other in economic cooperation and trade for mutual benefit and mutual development.

Use each other's strengths to enhance mutual progress and boost exchange. To this end, the parties will carry out more cultural and interpersonal exchanges, learn from each other and jointly contribute to the development and progress of human civilization.

The principle of «one China» is a political basis for the establishment and development of relations between China, the LAC countries, regional organizations. The vast majority of countries in the region adhere to the «one China» policy and recognize China's position on Chinese reunification and have no official ties or contacts with Taiwan. The Chinese government appreciates this position. China is ready to establish and develop relations between the states with all LAC countries, if these countries recognize the principle of «one China».

The document identified areas of comprehensive cooperation between China and LAC, including trade, investment, financial, industrial, energy, customs cooperation, cooperation on quality inspection, tourism cooperation, reduction debt relief, economic and technical assistance, cooperation in agriculture, science, technology and education, cooperation in culture and social affairs, medicine and health, with the media, human exchange, in the fields of environment, human resources and social security, humanitarian assistance, in the fight against poverty, military exchanges and cooperation, in matters non-traditional security [7].

Based on this policy document, in 2012 a strategy for cooperation between China and the LAC was developed.

In 2012, President Hu Jintao attended the 17th G20 Summit in Los Cabos, Mexico. In the same year, Chinese Prime Minister Wen Jiabao during his visit to Brazil, where he attended a UN conference on sustainable development, also visited Uruguay, Argentina and Chile. In his speech at the conference, Wen Jiabao expressed hope for the development of comprehensive cooperation and the establishment of long-term relations with the LAC. He also suggested launching a Forum on Sino-Latin American Cooperation with the Commonwealth of Latin America and the Caribbean (CELAC), as well as the establishment of a Sino-Latin American Cooperation Fund. During Wen Jiabao's visit to Brazil, a swap agreement on the exchange of national currencies in the amount of $30 billion dollars was concluded. The conclusion of a currency swap agreement will promote the spread of the Chinese yuan and intensify financial cooperation between China and Brazil [10].

After Hu Jintao's visit to the LAC, relations between China and the LAC began to develop steadily and rapidly. Mutually beneficial cooperation in various fields between the two sides has deepened, common interests have grown. The volume of Chinese exports to LAC in 2012 increased by 12.7% compared to 2011 and amounted to $112.2 billion, while the volume of imports from LAC for the corresponding period increased by 9.3% and amounted to $105.7 billion. LAC increased exports of finished products to China. Brazil has supplied China with textiles, chemicals, Argentina with electromechanical and stereo equipment, and Chile with watches and medical equipment. The parties see each other as promising partners for cooperation and see great opportunities for joint development. To strengthen trade relations, China has signed free trade agreements with Chile, Peru and Costa Rica. In May 2012, during the visit of Colombian President Juan Manuel Santos to China, the parties also discussed the signing of a free trade agreement between the two countries. China has also proposed a free trade agreement with MERCOSUR, a common market in South America that includes Argentina, Brazil, Venezuela, Paraguay and Uruguay. As of 2015, China has signed 3 free trade agreements, with Peru in 2009, Costa Rica in 2010 and Chile in 2015.

In October 2012, the People's Bank of China together with the Inter-American Development Bank established the China-Latin American Cooperation Fund (CLAC Foundation).

An important event for the development of relations between China and the LAC was the visit of Chinese President Xi Jinping on July 17, 2014 to Brazil, where he took part in the China - CELAC summit. At the summit, Xi Jinping delivered a speech entitled «Building a Community of One Destiny for Common Progress». In his speech, the President of the People's Republic of China made a historical excursion into the development of relations between China and the LAC. He stressed that thanks to the joint efforts of both sides over the past more than 60 years, strong and stable progress has been achieved. Although China and the LAC are geographically far apart, there is a natural sense of closeness between these peoples, Xi Jinping said. He also referred to an old Chinese saying: «Nothing can divide people with common goals and ideals, not even mountains and seas». In his speech, the Chinese President also noted that the parties are at a new historical stage, which opens up better opportunities and conditions for deepening mutually beneficial cooperation in all respects. The parties have every reason to make greater progress in expanding these relations. He also proposed the establishment of a comprehensive and joint partnership between China and the LAC, which provides for equality, mutual benefit and common development. According to him, such a partnership will have five main features, in particular: sincerity and mutual trust in the political sphere, mutually beneficial cooperation on the economic front, mutual learning and competition in the cultural sphere, close coordination in international affairs, and synergy between China with the region as a whole and its bilateral relations with individual countries in the region. The President of the People's Republic of China also singled out the tasks that need to be solved in order to create a comprehensive strategic partnership. In this context, he identified five main areas of cooperation.

First, the parties must treat each other as equals and sincerely support each other. Secondly, it is necessary to deepen mutually beneficial cooperation and work for joint development. To promote faster, broader and deeper cooperation between the two sides to achieve real results, Xi Jinping offered to cooperate in the «1+3+6» format. The number «1» means one plan. The number «3» means «three engines» - trade, investment and financial cooperation. In this context, the Chinese President noted that the parties should expand cooperation in the field of trade in services, e-commerce and other industries, as well as work to achieve the goal of $ 500 billion of bilateral trade between the parties over the next ten years. The number «6» means «six areas» in which the parties should focus cooperation: energy and resources, infrastructure construction, agriculture, industry, scientific and technological innovation, and information technology. Third, there is a need to promote exchange and mutual learning in order to establish a basis for lasting friendship. Fourth, the parties need to strengthen international coordination to protect common rights and interests. Fifth, the parties should promote joint cooperation to strengthen bilateral ties.

The summit announced the official establishment of the China - CELAC Forum (hereinafter - the Forum) and decided to hold the first ministerial meeting of the Forum in Beijing in January 2015. Xi Jinping also announced a $35 billion development finance package, which includes the provision of soft loans in the amount of $10 billion special loans, for infrastructure development in the amount of $20 billion and $5 billion for the CLAC Foundation.

He also announced a proposal to establish a $50 billion China - CELAC Cooperation Fund in the field of agriculture. The activities of this fund are aimed at supporting research institutions and agricultural enterprises in China in conducting agricultural cooperation projects with a number of Latin American countries, covering various parts of the industrial chain, including breeding, crop production, animal husbandry, processing of logistics and storage, as well as research and development of applied technologies. The fund will also help strengthen agricultural cooperation in science and technology, economics and trade between China and the LAC, as well as deepen the integration of China's agricultural and LAC sectors.

Another initiative of Chairman Xi Jinping at the China - CELAC summit was the announcement by the Chinese government of providing 6,000 government scholarships, funding of 6,000 training programs and 400 master's programs for SELAC youth training in China between 2015 and 2019. In addition, the Chinese government has officially launched a program of 1,000 young leaders on both sides, called the «Future Bridge», which provides for seminars for young people in the country. Xi Jinping also announced a cultural initiative - «2016 - the year of cultural exchange between China and the LAC». During 2016, cultural events from 30» were held in the Chinese provinces and cities, as well as in Hong Kong and Macao.

The China - CELAC Forum aims to promote a comprehensive partnership based on equality, mutual benefit and joint development between China and LAC. The China - SELAC Forum includes China and 33 CELAC member states: Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Dominica, Ecuador, El Salvador, Grenada Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Kitts and Nevis, Santa Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, Uruguay and Venezuela.

The forum became the main platform for promoting joint cooperation between China and the LAC. As part of the Forum, China conducts dialogues and cooperates with other organizations and institutions in Latin America and the Caribbean to build a comprehensive and balanced network of cooperation between China and LAC.

The first meeting of Chinese - CELAC ministers took place in Beijing from January 8 to 9, 2015. The opening ceremony was attended by Chinese President Xi Jinping, Costa Rican President Luis Guillermo Solis, Ecuadorian President Rafael Correa Delgado, Venezuelan President Nicolas Maduro Moros and Bahamas Prime Minister Perry Christie. The main topic of the meeting was «New platform, new starting point and new opportunities - joint efforts to promote comprehensive cooperative cooperation between China and LAC». At the meeting, Xi Jinping delivered a speech «T ogether to write a new chapter in the partnership of comprehensive cooperation between China and the LAC countries». In his speech, Xi Jinping presented the state of relations between China and the LAC. He stated that mutual political trust between the parties is growing, practical cooperation is expanding, exchange between people is growing, international coordination has been strengthened, and general cooperation has progressed. The Chinese President also revealed the potential for cooperation between China and the LAC. He said that the area of China and LAC together is one-fifth of the world's area, the total population is one-third of the world's population, and China's economy and LAC together account for one-eighth of the world's economy. This creates favorable conditions and provides valuable resources for achieving comprehensive and profound growth in China - LAC relations, Xi Jinping said. Chinese Prime Minister Li Keqiang and Foreign Minister Wang Yi also met with the participants.

Three final documents were released at the meeting, namely: the Beijing Declaration of the First China - CELAC Ministerial Meeting, the Plan of Cooperation between China and LAC (2015-2019), and the institutional arrangements and rules of the China - CELAC Forum. The Beijing Declaration consolidated the political consensus between China and the LAC in promoting their comprehensive partnership, defined the general direction of joint cooperation between China and the LAC and the directions of development of the China - CELAC Forum. It establishes guidelines for deepening cooperation between the two parties, including respect, equality, pluralism, mutual benefit, cooperation, openness, inclusiveness and unconditionality.

The Plan of Cooperation between China and LAC (2015-2019) identifies priorities and specific measures for cooperation between China and the LAC in the next five years, covering 13 areas: policy and security; international affairs; trade, investment and finance; infrastructure and transport; energy and resources; agriculture; industry, science and technology; aerospace and aviation; education and training; culture and sports; press, mass media and publications; tourism; environmental protection, risk management and disaster risk reduction; poverty eradication and health; friendship between people.

At the China - CELAC Ministerial Meeting, it was noted that this plan will be implemented on the principles of flexibility and voluntary participation, in accordance with the domestic policy and provisions of the national legal system of each party. The plan also does not affect any bilateral cooperation programs agreed by individual Parties and does not replace bilateral agreements, decisions and commitments established between the Parties. The institutional principles and rules of the China - CELAC Forum were developed at the meeting. The participants of the event also identified such mechanisms of cooperation as a meeting at the ministerial level, a dialogue between the Ministers of Foreign Affairs of China and the SELAC «quartet», and a meeting of National Coordinators.

Under China's Plan of Cooperation with LAC (2015-2019), both sides will hold sub-forums in specific areas of the China - CELAC Forum to build platforms for China and LAC to strengthen exchanges and cooperation. By March 2016, the following subforums have been launched: Forum of Chinese Agriculture Ministers and LAC, Scientific and Technical Innovation Forum of China and LAC, Forum of Chinese Political Parties and CELAC, Infrastructure Forum of China - LAC Cooperation, Forum of Young Political Leaders of China, Forum of brain centers of CHINA - LAC, China - LAC Business Summit, China - LAC Friendship Forum and China - LAC Legal Forum.

In accordance with the Institutional Rules and the Rules of Procedure of the China - CELAC Forum in all areas, all activities will be conducted on the basis of consensus. The results of the forums will be presented for consideration at a meeting of the China - CELAC Ministerial Forum. At the sectoral forums, the Parties shall study more closely the issues of cooperation in the relevant field, make decisions and relevant documents.

At the end of the meeting, the participants made an important statement. They expressed their conviction that the official establishment of the China - CELAC Forum is an important platform for countries with broad cooperation. The Forum, chaired by the Ministries of Foreign Affairs of the China - CELAC Forum, will address issues related to the diplomatic, political, economic, scientific and technical, trade, financial, cultural, social and environmental spheres. In their work, the Forum participants will be guided by the principles of respect, equality, pluralism, mutual benefit, cooperation, openness, inclusiveness and non-conflict. The participants of the Forum are determined to hold a dialogue in certain areas of the Forum and others, agreed by mutual consent, through innovative ways of cooperation, in order to promote common sustainable development, social well-being, economic growth and new achievements in South-South cooperation. The Chinese government pays considerable attention to the promotion of history, culture, traditions and language in LAC. As of the end of 2015, 39 Confucius institutes and 18 Confucius classes were opened in 20 LAC countries [6].

The second meeting of Chinese ministers - CELAC took place in the Chilean capital Santiago on January 21-22, 2018. At the meeting, Chinese Foreign Minister Wang Yi said that China and the LAC will work together to take China's comprehensive partnership, CELAC, to a new level. Wang Yi also said that new areas of cooperation have been opened, which include the fight against corruption, drugs and cybercrime. The main topic of the meeting was «CELAC - China: work for greater development, innovation and cooperation for our peoples». Chinese President Xi Jinping sent a congratulatory letter to the participants of the meeting, in which he noted that the China - CELAC Forum has become the main channel of joint cooperation between all participants, which brings results in various fields [15]. The participants of the meeting noted that the format of the meetings at the ministerial level corresponds to the goals set during the establishment of the China - CELAC Forum. This format of work allows the Forum participants to conduct various high-level dialogues to exchange experiences between governments, facilitates consultations on international issues of common interest in working to strengthen integration between the Forum member countries. Participants recognized that guaranteeing respect for human rights and fundamental freedoms. They also noted that the Chinese government's «One Belt, One Road» initiative opens up opportunities to strengthen development cooperation between the countries concerned. The participants expressed their readiness to work for the promotion of peace, cooperation and mutual learning for mutual benefit and mutual benefit.

From November 17 to 23, 2016, Xi Jinping visited the LA for the third time during his term as President of the People's Republic of China. During the visit, he visited Ecuador, Peru and Chile. In addition, Xi Jinping took part in 24 meetings of ATEC economic leaders, which took place in the Peruvian capital, Lima. The Chinese leader's visit to the LAC is considered historic because it opened a new era in the history of China's relations with the LAC During his visit, Xi Jinping delivered a speech entitled «Entering a Bright Future for China and Latin America» in the Peruvian Congress. In this speech, he stressed that China will unwaveringly support the LAC in finding its own path of development in accordance with national conditions, as well as the dignity and revival of the LAC, as well as support the LAC at both international and regional levels. The Chinese leader also offered to stimulate new growth through increased trade, investment, industrial integration and innovation. In addition, Xi Jinping innovated the creation of a «Community of Common Destiny for China and the LAC» and expressed the hope that cooperation between China and the LAC would become a new type of South-South cooperation model.

He also said that Chinese imports would increase to $8 trillion over the next five years and the volume of foreign investments will amount to $600 trillion dollars. This, in turn, will allow China to send $750 billion for foreign investment. About 700 million Chinese tourists are expected to visit foreign countries. China is becoming more open and will offer the world, including LAC, its products and capabilities.

During the visit, the Chinese leader took part in 70 diplomatic events and signed more than 40 agreements and contracts on cooperation in various fields, including: mining, energy, manufacturing, agriculture, fisheries, communications and infrastructure development. In addition, Joint Statements on the establishment of a Comprehensive Strategic Partnership with Chile and Ecuador were signed. The Chinese leader also held talks with representatives of other LAC on establishing a Comprehensive Strategic Partnership. After entering a new era, the status of China's relations with Brazil, Mexico, Argentina, Venezuela and Peru has been raised to the level of a Comprehensive Strategic Partnership. During his stay in Peru, Xi Jinping together with the President of Peru Pedro Pablo Kuczynski initiated the Joint Action Plan for the period 2016-2021 [18].

Immediately after Xi Jinping's return from the LA to Beijing, the Chinese government published a second policy paper (the first was drafted in 2008) on China's strategy in the LAC. The document presents new goals, proposals and measures for joint action in the new environment. The document provides for the creation of a new model of China's cooperation with the LAC, based on sincere mutual political trust, mutually beneficial economic and trade cooperation, mutual knowledge in cultural exchange and mutual support in international affairs to create a community of common destiny. The new policy document also identifies the following areas of cooperation: politics, economics and trade, society, international cooperation, peacekeeping, security guarantees, jurisprudence and general issues of cooperation. In the document, the Chinese government expresses great respect for the LA and bilateral relations, and hopes that the relations between China and the LAC will reach a new level of Comprehensive Strategic Partnership.

Panama was the last Latin American country with which China established diplomatic relations. This was stated by the President of Panama Juan Carlos Varela on June 12, 2017. Speaking at the National Assembly of Panama, the Minister of Commerce and Industry of Panama Mr. Augusto Arosemena said that Panama is launching a new brand «Panama - a bridge between China and Latin America» and the slogan «Panama: Great connection». Relations between the two countries have a long history. More than 160 years ago, Chinese workers arrived in Panama to participate in the construction of the Panama Railway, which connects the Pacific coast of the Republic of Panama with the Atlantic. Since then, the influx of Chinese immigrants to Panama has continued. Today, the Chinese diaspora in Panama numbers about 150,000 people and is one of the largest in the LAC. A new page in relations between the countries began in 1995 when the Parties agreed to open a Panamanian-Chinese office for trade development. The activities of the office contributed to the development of trade between the two countries. In 2016, Panama became China's largest trading partner in Central America. However, since 2014, the volume of bilateral trade has continued to decline (2014 - $817 million, 2015 - $695 million, 2016 - $635 million. At the same time, the volume of Panamanian agricultural exports amounted to $50.9 million, which is 22.9% more than in 2015.

The Panamanian leadership hopes that the opening of the Panamanian embassy in China will help intensify bilateral trade. The total amount of Chinese investments in Panama is 230 million dollars. USA. Today, there are about 30 Chinese companies in Panama operating in the transportation, telecommunications, finance and infrastructure sectors, including Huawei Telecommunications, China Harbor Engineering and China State Construction Engineering. The last two took part in the construction of 3 lines of the Panama subway. The Bank of China also has an office in the country. In July 2017, the Chinese company China Landbridge Group began construction of a container port on Margarita Island, located in the Panamanian province of Colon. The amount of investment in the construction of the project is $1.1 billion. The port has an important role to play in the implementation of the Chinese initiative «One Belt, One Road». China is today the second largest user of the Panama Canal. In 2016, the total volume of Chinese cargo through the canal was 38.6 million tons. A consortium of Chinese companies has embarked on a large-scale project to build 4 bridges across the Panama Canal. This is expected to account for 5% of world maritime trade. The next step in the development of bilateral relations between the countries should be the signing of a free trade agreement. Negotiations on this have already begun [21].

Trade and economic cooperation between China and LAC. Bilateral trade and economic cooperation between China and the LAC has significantly intensified over the past 20 years. The volume of bilateral trade between the parties increased 18 times from $12 billion in 2000 to $228 billion in 2016 [11, p. 10]. In 2017, the volume of trade between the parties increased by 18.8% and amounted to $258 billion. China has become the region's second largest trading partner, accounting for 9.0% of total LAC exports and 18.4% of total imports in 2016. Trade between LAC countries can be explained by the relative comparative advantages of each region, as well as the dynamics of demand and limited supply. China's rapid economic progress, combined with its energy and capitalintensive growth strategy, stimulated demand for Chinese goods and equipment at LAC, while LAC's natural resources stimulated demand from Chinese companies. As a result, LAC exports increased significantly. China's six main trading partners at LAC are resource-rich South America: Brazil, Argentina, Chile, Peru, Colombia and Venezuela. These countries' exports to China focus on four products, which account for 75% of Latin America's exports to the Asian country: copper, soybeans, crude oil and iron ore. Mexico, which has become China's largest trading partner in LAC and fourth in the region in terms of exports, demonstrates a more diversified trade profile through the participation of both countries in global value chains [16, p. 45]. Between 2005 and 2016, China invested about $90 billion to LAC, which is 5% of total foreign direct investment (FDI) in the region. Brazil, Peru, Argentina and Mexico have become major recipients of Chinese FDI. FDI is often in the form of mergers and acquisitions. They are mainly concentrated in energy, utilities and mining. More than 80% of China's investment in LAC comes from state-owned enterprises, which mainly invest in energy resources. The trade confrontation between China and the United States has affected China's investment activity in the region. The volume of agreements on mergers and acquisitions of China with LAC fell from a record level of $17.5 billion in 2017 to only $7.6 billion in 2018. Chinese green direct investment in LAC fell from $4.4 billion in 2017 to only $1.6 billion in 2018, the lowest level since 2006.

Fig. 1. Chinese investments in the LAC sectors, 2005-2016 [17].

Extraordinary economic growth, combined with rapid industrialization, significant urbanization, expanding the middle class, changing demographics, and modern lifestyles, is helping to increase China's demand for food, qualitative changes in diet, and new consumer preferences. Demand for protein and processed foods is growing, as is interest in fruits, vegetables and wine. To address this rapid demand, China is relying on large- scale imports and strengthening strategies for self-sufficiency in food, including grain. LAC countries account for 24% of China's total food imports, although they are mainly represented by primary products, which are then processed in China. The «One Belt, One Road» initiative is today the main driver of the Chinese government's investment strategy for agriculture. Given the global competitiveness of many traditional and non-traditional agricultural products, changes in China's agriculture and food market open up new opportunities for LAC countries to increase higher value-added and processed food exports to China.

The trade confrontation between the United States and China has also affected the geographical structure of Chinese exports. After China cut soybean imports from the United States, China's purchases of Brazilian soybeans rose at the same time. This led to an increase in Brazil's soybean exports in 2018 by 30% [12].

For almost two decades, LAC and China have built strong trade-focused ties. Since 2000, trade between the parties has increased eighteenfold. China has also become a source of funding for the region through foreign direct investment (FDI) and credit, mainly for infrastructure and energy. Increasing trade and investment ties have helped both partners well, allowing China access to energy, metals and food, and allowing Latin American countries, including South America, to uncover a new factor in growth and poverty reduction. According to Ukrainian researcher V. Kaspruk, China has become a kind of engine of economic growth for Latin America in the XXI century. At the same time, draws attention to the fact that Latin American experts are concerned that the continent's countries in the structure of economic exchange with China are becoming a raw material appendage, as it was in the nineteenth century, during the British Industrial Revolution [2].

Fig. 2. Export of LAC to China in 2016 [14]

Fig. 3. LAC imports from China in 2016 [14].

Cooperation in the energy sector. The most striking evidence of bilateral cooperation between China and the LAC is energy cooperation. During the years of reforms, China has built many hydroelectric power plants, among which the world's largest is the Three Gorges hydroelectric power plant. In addition, China has modern technologies for the production of the necessary hydropower equipment and the creation of appropriate infrastructure. China is actively promoting its experience and technology in foreign markets.

During 2009-2012, the Chinese energy company China Energy Engineering Group (Chine Energy) carried out a hydraulic project in the Venezuelan state of Apure, aimed at creating flood protection systems to protect local agriculture and fisheries. Thanks to the created protection system, the problem of flooding was solved and safe conditions for agricultural production and fishing were created. China Energy is also implementing several energy transmission and transformation projects in Venezuela. In 2014, the company received a contract with Midwest power grid, which includes the construction of 2 transformation substations, modernization of 6 transformation stations and installation of 100 km transmission lines. China Energy CEO Zhang Jianxin noted that the company considers the aircraft market a priority in the company's external strategy. He also added that the company plans to expand its activities in the field of hydropower in Argentina, Chile, Peru, Colombia and Venezuela. Today, the level of hydropower development in Europe is 47%, in North America - 38%, and in the LAC - 24%, so the growth potential of hydropower in the LAC is significant.

In 2010, China Energy and China Gezhouba Group Corporation (CGGC) entered the aircraft market to implement a flood control project in Ecuador. Thanks to this project, flood prevention systems have been created in the Guaya River Basin, which has also protected 100,000 people in the region from flooding. The Ecuadorian government and its citizens praised the work of their Chinese counterparts and thanked them for building the critical facility. After that, the Chinese company CGGC successfully implemented the second project in Ecuador to build a hydroelectric power plant «Soplador» with a capacity of 4.87 gigawatts. 5000 workers were involved in the construction of the hydroelectric power plant, including 3000 Chinese workers and 2200 Ecuadorian workers. In addition to salaries, which averaged 150000 yuan a year for management, the Chinese company provided free transportation of workers to work, as well as breakfast. Laundry rooms have been set up at the workers' residences, which can be used free of charge. Tennis courts, basketball and volleyball courts were built for entertainment and recreation. The company also funded the construction of a church for Christian workers.

Chine Energy has successfully established itself in the Colombian market, where it implements 20 engineering projects worth $8 billion. Projects include not only hydropower projects, but also projects related to water conservation, agricultural development and energy transmission.

The largest energy projects of Chinese companies are the construction of two hydroelectric power plants in Argentina - Nestor Kirchner Hydropower Station and Jorge Saipan Nick Hydropower Station worth $4.6 billion. The projects are being built by the Chinese company CGGC and the Argentine company Argentina Electroingenieria (Eling).

Chine Energy is not only involved in the implementation of energy projects. The company also invests in training technicians and engineers to work on the newly built facilities. The Chinese company is also involved in local economic and industrial development. Thanks to the activities of Chinese companies, LAC companies have gained access to clean energy [8].

Cooperation in the field of tourism. In addition to cooperation in the field of energy and trade and economy, the Parties have good prospects for cooperation in the field of tourism. In recent years, tourism in China has been developing rapidly. Increasing China's travel and tourism spending is changing the global tourism landscape. Due to revenue growth, weakening travel policies and diversification of consumer demand, outbound tourism in China has increased significantly. The number of Chinese tourists increased from thirty million tourists in 2005 to 129 million in 2017. In 2016, foreign travel expenses by Chinese tourists amounted to $261 million. According to this indicator, China ranks first in the world. Most often, Chinese tourists visit Asia, Europe, North America, Australia and New Zealand. Only about 1% of Chinese foreign tourists visited LAC in 2017. Most tourists traveled to Mexico. Other LAC have become more interested in Chinese tourists, including Argentina, Brazil, Chile, Colombia, the Dominican Republic, Panama and Peru. Given China's interest in building relations with LAC, the Chinese government's targeted investment and trade policies in LAC, it is to be expected that the tourism sector will also intensify significantly in the coming years. An additional factor in stimulating Chinese tourism to LAC is the Chinese «One Belt, One Road initiative», which aims to connect different regions and continents. The Chinese government is actively promoting this initiative to other developing countries, including the LAC.

Conclusions

In the 21st century, China has significantly intensified its foreign policy in the LAC. Given the uncertainty of global development prospects and the strengthening of protectionism, the Chinese leadership is actively promoting the idea of building a «community of common destiny» through the introduction of the global initiative «One Belt, One Road». LAC are seen as important partners in implementing this initiative. After Chinese President Xi Jinping's third visit to the LAC in China, a new strategy for cooperation between China and the LAC was developed. The document states that China is committed to building new relations with the LAC on the basis of five principles, namely: sincerity and mutual trust in the political sphere, mutually beneficial cooperation on the economic front, mutual cultural training, close coordination in international affairs, and as well as mutual strengthening of China's cooperation with the region as a whole and the development of bilateral relations with individual countries in the region. China is ready to strengthen ties and cooperation with the LAC within the framework of international multilateral mechanisms and jointly defend the international order and system based on the goals and principles of the UN Charter. The Chinese leadership declares its readiness to deepen South-South cooperation with the LAC, consolidate multilateral trading systems, promote global governance reform, and build an open world economic system. China appreciates and recognizes the important role played by regional and subregional LAC organizations in regional and international affairs.