Latin Americans have confidence in partnership with China

BEIJING, Nov. 18, 2024 /PRNewswire/ -- Chinese President Xi Jinping arrived in Rio de Janeiro on Sunday local time for the 19th G20 Summit and a state visit to Brazil. Ten years ago, Xi attended the China-Latin American and Caribbean (LAC) Countries Leaders' Meeting in Brasilia and delivered a keynote speech, during which he, for the first time, made the proposition of building a China-LAC community with a shared future. How should this notion be understood? How does the rise of the Global South, especially China and Brazil, contribute to the fairness and justice of the international system? Global Times (GT) reporter Wang Wenwen interviewed Marcos Caramuru de Paiva (Paiva), former Brazilian ambassador to China, to discuss these issues.

GT: It has been a decade since China proposed the building of a community with a shared future between China and LAC. What is your understanding of this idea? What common interests do China and LAC have?

Paiva: China's relations with Latin America have changed considerably over the last 10 years. Chinese investments in the region have increased consistently, trade flows have performed exceptionally well and there is a vision toward the future. The inauguration of the port of Chancay in Peru is part of this vision. The new Chinese investments in electric vehicles and the digital economy in Brazil are also part of this vision. Finally, Latin America has abundant reserves of metals that will play a key role in a low-carbon future. Latin American cooperation with China in the mining sector is booming.

I think that all this has been possible because Latin Americans have confidence in the partnership with China, while China increasingly recognizes the positive environment for business in the region.

The notion of a community with a shared future expresses well what happens between Latin American countries and China. Latin America is aware that the future of the international economy depends on Asia, China in particular, and feels comfortable with the new avenues opened in the connections with China. China is regarded as a valuable partner, and there is an obvious appreciation of the cooperation with China. China, in turn, has understood the value of the interaction with Latin American countries for its present and future realities.

Today, China benefits from access to food and commodities that Latin Americans supply. The challenge lies in building a future and designing new forms of cooperation that will enable Latin Americans to connect with China's modernity, while also encouraging China to view Latin America as a contributor to its own future. The idea of a community with a shared future carries a dynamic meaning. The world is expected to change considerably in the next few decades. Given the experiences so far, Latin America and China have the potential to build a future together, focusing on the well-being of their societies and recognizing that international cooperation is an essential element in transforming realities for the better.

GT: What do you think of the trend where international economic issues are often being politicized and pan-securitized? Do you take it as a challenge to the current international order? How does this hinder international cooperation on certain issues? 

Paiva: The politicization of economic issues hinders growth and creates an environment where investor insecurity prevails. The recent concepts of nearshoring and friendshoring means that efficiency is left aside, while geopolitical considerations prevail.  

GT: What is your expectation for the G20 Summit? 

Paiva: I would like to see the G20 engage in a serious discussion about the abovementioned topics. Brazil, at the technical-level meetings, has initiated such a discussion and expects that, at some point, these topics will be raised to decision-making levels. The T20, one of the G20 engagement groups that assembles think tanks from around the world, has highlighted that the prominence of non-economic objectives as drivers for industrial policy poses a major challenge to multilateral cooperation in the area of trade. The T20 has also advocated for the strengthening of the WTO.

GT: This year marks the 50th anniversary of China-Brazil diplomatic ties. China and Brazil are both representatives of developing countries and emerging economies with global influence. How can China and Brazil contribute to the rise of the Global South?

Paiva: China and Brazil inject confidence by showcasing their own experiences of collaboration. The stock of FDI in Brazil exceeds $70 billion. Bilateral trade exceeded $180 billion last year and continues to perform very well in 2024. Both countries have been exploring new areas of cooperation, particularly in the green economy. 

Within the context of BRICS, both sides have agreed to extend dialogue with other developing and emerging market countries. Of course, there is great dissatisfaction in the Global South with the present international order, the paralysis of multilateral institutions and the low level of representation of developing countries in decision-making bodies.  

China and Brazil shall continue to voice their dissatisfaction with the current representation of the Global South in the decision-making processes of international organizations and shall continue to coordinate their positions in international forums to strengthen the Global South voice. They also have to make new institutions follow innovative paths and follow policies that are more responsive to the expectations of the Global South. Changing the fundamentals and the decision-making processes that guide the world order is not a simple proposition, but the process is already underway.    

GT: How do you analyze the role of emerging economies in global governance? And how does the rise of the Global South contribute to the fairness and justice of the international system? 

Paiva: The role of emerging markets in the world has been growing. Decades ago, the general perception of emerging markets was one of instability and uncertainty. Indeed, several countries faced severe economic and balance of payments crises in the 1980s and 1990s, which projected an image of fragility. Nowadays, the reality is different. Emerging markets are making solid contributions to global GDP growth. They offer excellent opportunities for investors and have become much more aware of the need to implement sound macroeconomic policies at home.

The case of China is particularly noteworthy, not only because of its success in poverty alleviation, but also due to its emergence as a leading global player and its extraordinary technological advancements.

Not receiving the recognition they deserve, emerging markets have been creating new international spaces where they can design and implement innovative forms of cooperation. The bad news is that the world order will become increasingly fragmented. There is no way to escape this fragmentation if global governance remains unchanged.

GT: China has proposed ideas such as the Global Security Initiative and the Global Development Initiative to cooperate with the international community in addressing global challenges. What do you think of China's initiatives in multilateral governance? 

Paiva: I understand the Chinese perspective that to rebuild the international order, it is necessary to develop a conceptual framework. The Global Development Initiative and the Global Security Initiative are part of this new framework. China has been a strong voice in favor of multilateralism. The voice of China is essential for producing change.

SOURCE Global Times