On Wednesday, China’s state media reported that Colombia has agreed to a “cooperative plan” to participate in China’s ambitious Belt and Road Initiative (BRI).
The BRI has faced criticism, often described as a potential “debt trap,” as it encourages countries to take on substantial loans from Chinese banks, which may be difficult to repay due to the less-than-promised profitability of many BRI projects.
During a visit to China on Monday, Gustavo Petro, Colombia’s President, expressed that his country will be involved in what was originally dubbed the “Silk Road,” an ancient trade route connecting China to Europe. Interestingly, Latin America had no historical ties to this route.
“We’ve taken a significant step in enhancing relations between China and Latin America,” Petro stated.
According to reports, Chinese leader Xi Jinping mentioned that as part of the BRI deal, China promises to aid in importing higher quality goods from Colombia, investing in local businesses, and participating in infrastructure development.
“Two-thirds of Latin American countries have now engaged in infrastructure initiatives, which aim to boost China’s political and economic sway globally, in exchange for infrastructure investments and other major projects,” stated Deutsche Welle on Wednesday.
Petro, along with various Latin American leaders, attended a gathering in China aimed at strengthening ties in the region. Such events are seen as China’s strategy to increase its influence in Latin America, often at the expense of the United States.
Incorporating Colombia into the BRI is a notable win for Beijing, especially following Panama’s withdrawal from the initiative, which had previously been the first Latin American participant back in 2018.
At the China-CELAC Forum, Xi framed China as a supporter of a multilateral global order and criticized what he termed “bullying and hegemony” from the U.S. under Donald Trump.
“There are no winners in tariff wars or trade battles. Only through unity and cooperation can nations safeguard global peace and stability, fostering development and prosperity,” remarked Xi.
The Chinese Foreign Minister encouraged CELAC members to “unite” with China against Trump, who has been accused of using tariffs as a means of coercion.
Moreover, Xi indicated plans to extend a $9.2 billion credit line to Latin American and Caribbean nations at the forum, conditional on their willingness to accept funding in yuan rather than U.S. dollars. He also promised to initiate visa-free travel for five Latin American nations, with intentions to expand this in the future, though he did not specify which countries would be included first.
