China eyes $500b annual trade with Latin America in 10 years

President Xi Jinping reviews a guard of honor upon arrival at the National Congress in Brasilia on Wednesday. [Photo/Agencies]

BRASILIA - Chinese President Xi Jinping said here Thursday that his country will work with Latin American and Caribbean countries to boost their two-way trade to $500 billion in 10 years.

China will also "encourage and support more Chinese companies to invest" in the region so that its stock of investment could reach $250 billion in the coming decade, the president said in a keynote speech at a summit with 11 Latin American and Caribbean leaders.

He called on the two sides to expand mutual investment, promote investment diversification, and channel more capital into production sectors.

In his speech, the Chinese leader proposed a "1+3+6" cooperation framework to "promote faster, broader and deeper cooperation between the two sides for real results."

"One means one plan," Xi said, referring to the Chinese-Latin American and Caribbean Cooperation Plan (2015-2019), with the aim of achieving inclusive growth and sustainable development.

He also suggested that "three engines," namely trade, investment and financial cooperation, should propel the practical cooperation between China and Latin America so as to reach comprehensive development.

The Chinese president also said cooperation between China and Latin American and Caribbean nations should focus on six areas: energy and resources, infrastructure building, agriculture, manufacturing, scientific and technological innovation, and information technologies.

To facilitate cooperation in these areas, Xi announced that "China will formally launch the $10 billion Special Loans for Chinese-Latin American and Caribbean Infrastructure and will, on this basis, further increase the credit line to 20 billion dollars."

China, he added, will also provide $10 billion in preferential loans for Latin American and Caribbean countries.

China will also launch a Chinese-Latin American and Caribbean cooperation fund and pledge a contribution of $5 billion, which is primarily for cooperation in energy and resources, agriculture, manufacturing, hi-tech, sustainable development and other areas, Xi said.

Additionally, China will launch a $50 million special fund for agricultural cooperation with Latin American and Caribbean countries, and introduce an exchange program between young scientists of the two sides.

The meeting was held during Xi's state visit to Brazil, the first leg of his four-nation tour to South America.