1. China-CELAC Forum: Driving Factors, Challenges and Priorities
ZHOU ZHIWEI
Institute of Latin American Studies(ILAS)
Chinese Academy of Social Sciences(CASS)
November 2016

2. Contents:
Opportunities and driving factors;
Challenges;
Priorities;

3. 1. Opportunities and Driving Factors
Solid foundation of China-Latin America relations
Strategic relationships with 9 LAcs
China-Brazil
China-Venezuela
China-Mexico
China-Argentina
China-Peru
China-Chile
China-Ecuador
China-Costa Rica
China-Uruguay

4. Economic relations/ greatest achievement China-LA Trade:
22 times( ) and the 2nd partner
1st trade partner—— Peru, Brazil, Uruguay, Chile;
2nd trade partner—— Mexico, Argentina, Cuba, Costa Rica, Colombia, Venezuela;
Investment:
US$ 29 billion(2015) > Word Bank + IDB + CAF
LA: 2nd destination of Chinese global investment
China: important origin of FDI

5. Cooperation Mechanisms
Strategic Dialogue: China and principal countries;
High level bilateral cooperation mechanism (Cosban: China-Brazil, Permanent committee: China-Mexico, Argentina, China-Venezuela, China-Caribe)
FTA agreement: Chile, Peru and Costa Rica
+ Colombia
China’s participation in LA’s regional Association: (Observer Member in IDB, ALADI, OAS, CEPAL; CMs with RIO Group, Mercosul, Andean Group)

6. New trend of both sides’ global cooperation
China strengthens its trans-regional cooperation
Cooperation Mechanisms with developing countries: FOCAC (China-Africa); CACF(China-Arabe), 10+1 and 10+3 (ASEAN), CCACD(China-Middle Asia), SCO
Experiences on trans-regional corporation
As an emerging region, LA is an important partner of China’s global cooperation strategy
Latin America
Increasing trans-regional cooperation(Africa, Arabe, ASEAN)
Diversification Process(Trade, investment, foreign relations)
Integrating in Asian Production and supply chain

7. South-South Cooperation
Global balance of power has changed;
South-South cooperation reaches to all dimensions of global governance;
——Improving the global power redistribution
China and Latin America are rising actors;
——leadership in the new trend of South-South cooperation

8. Part 1: Conclusions
The establishment of China-CELAC Froum is a reasonable result of the fast-accelerating Sino-Latin American relations in recent years, but also a result corresponding to the new trend of trans-regional cooperation, and South-South cooperation;
The solid foundation of Sino-LA relationship, the aspiration of strengthening cooperation, the new wave of global trans-regional and South-South cooperation, are the factors explaining the rationalities of establishment of China-CELAC Forum, but also the principle driving forces to push this mechanism to develop in the future.

9. 2. Challenges and Difficulties
Geopolitics in Latin America
Regional disputes;
Ongoing political changes;
US-Latin America relations; steepening its diplomatic efforts……
Participation of other powers in Latin America;

10. Difference of LA’s attitude to China
Policy priorities to China are variable;
Capacity building of CELAC;
Compare with China-Africa Forum;

11. Economic difficulties of both sides
Trade goal: US$ 500 billion in 10 years(6.6%)

12. Challenge of Investment
Chinese Investment goal: US$250 billion in 10 years(11.2%);
Not easy to achieve it, US$100 billion(Dec. 2015);
Lack of understanding of business environment;

13. Countries not recognizing China
12 Latin American countries;
Taiwan Situation changed;
it’s possible to produce corresponding reaction……
When these countries become members of Quartet of CELAC, how to coordinate the dialogue?

14. Part 2: Conclusions
China is newcomer in Latin America, it doesn’t know well this region, not only on the complex geopolitical environment, but also the business environment. Besides the lack of understanding, the economic difficulties of both sides also add more challenges to achieve the trade and investment targets announced at the first China-Celac Forum. In addition, the Taiwan Issue is another challenge factor, especially with the new political situation in Taiwan.

15. 3. Priorities Cooperation framework: 1+3+6
Find new engine for economic relations
Cooperation framework: 1+3+6
--- to achieve a sustainable and Win-Win economic relations
Investment will become a keyword in next years.
Priority fields: energy, resources,
infrastructure, agriculture

16. Multi-Channels public diplomacy, enhancing mutual-understanding
Experiences of FOCAC
Program cooperation of Think-Tanks;
“Bridge” of Chinese immigration community;
Education exchange and cooperation;
Media exchange;
Think-Tank and scholar exchange;
Interaction between enterprises, etc.

17. Mechanism Plus network
Fundamental for China-Celac Dialogue;
Bilateral dialogue with principal countries(Quartet) is important to ensure China-Celac Forum to function properly;
Good way to resolve the interest divergences;
Contributes to coordinate the interests competition;
Different plans to sub-regions;
Support the integration of Latin America;
Cooperating with other multilateral organizations, etc.

18. Part 3: Conclusion
China-CELAC Forum is still a new mechanism arrangement, but it should be proceeded in an orderly way and step by step. In the near future, the priority routs should include enhancing the economic cooperation, promoting multi-channels public diplomacy, and consolidating the bilateral relation and cooperation with sub-regional organizations.

19. Thanks for your attention