Xi Pledges $10B for Community of Latin American and Caribbean (CLAC) States
On 13 May 2025, during the opening plenary of China-CLAC Forum in Beijing, Chinese President XI Jinping pledged USD 10 billion in funding for the Community of Latin and Caribbean (CLAC) States. The CLAC consists of 33 countries, of which 22 have joined the #BRI. The Forum aims to develop multi-faceted cooperation with China and CLAC.
The trade volume between China and CLAC reached USD 518 billion in 2024, positioning China as the 2nd largest trading partner behind the USA in the region. Currently, China has #FTA with Chile, Costa Rica, Ecuador, Nicaragua and Peru. China managed to become the top trading partner for Brazil Chile, Peru and Paraguay.
The 1st China-CLAC Forum took place ten years ago in 2015. As the USA slapped tariffs on China, China shifted sourcing of agrifood, such as soybean and meat, from the USA to Brazil, Argentina, and other Latin America countries.
Although it was presented as a Ministerial Forum, Brazil President Lula and a handful of heads of states attended the event. Chinese President Xi Jinping delivered the welcome address on the first day of the Forum.
“China and CLAC are important members of the Global South. Only through the unity and cooperation can we maintain global peace and stability, as well as promote common development and shared prosperity.”
Chinese President XI Jinping
President Xi offered Five Cooperation Initiatives for CLAC. Under the Governance Initiative, China will invite 300 political party cadres every year to China to exchange on governance. Through the Development Initiative, both sides will join hands to maintain the stability of the Global Supply Chains and promote ‘a constructive and open international environment.’
Under the Technology Initiative, Chinese tech companies will be encouraged to enter into partnership with CLAC. Finally, the Civilization Initiative will promote universal values such as peace, justice and freedom. The Peace Initiative will support the CLAC region as a Zone of Peace and maintain it as a nuclear-free zone.
Fifth and final, under the Talent Initiative, China will provide 3,500 scholarships and 10,000 training opportunities in China. China will train 500 Mandarin teachers and would welcome 1,000 persons to promote the ‘Chinese Language Bridge.’ Under #TVET, China will also train 300 technicians through the Luban Workshops.
Additionally, China will organize a conference to foster the Dialogue between Chinese and CLAC Civilizations to deepen cooperation in cultural heritage, archeology, preservation of historical sites and museum exhibitions. Both sides will also jointly conduct research on ancient civilizations and combat illegal trade of cultural relics.
Under the Monroe doctrine, the USA considered Latin America as its backyard, which has traditionally been a fertile ground for covert operations. Recently, US managed to pressure Panama to exit from #BRI and is attempting to regain back control over the Panama Canal.