The truth of relations and cooperation between China and LAC Countries

by Wei Hongtian, Ambassador of the People’s Republic of China to Grenada

I took note that, on his first official trip abroad from 1–6 February, newly appointed US Secretary of State Marco Rubio visited 5 LAC countries — Panama, El Salvador, Costa Rica, Guatemala, and the Dominican Republic, and made negative comments concerning China, which we thought interfered with China’s internal affairs, undermined its legitimate rights and interests, and sabotaged cooperation between China and regional countries.

To avoid the international community being misled, it is worth to set the record straight with facts.

First, he demanded that Panama make “immediate changes” to what he calls China’s “influence and control” over the Panama Canal. However, the reality is far from his accusations. China has never participated in the management or operation of the Panama Canal, nor has it interfered in canal affairs. Instead, China supports Panama’s sovereignty over the canal and upholds its status as a permanently neutral international waterway. Rubio’s accusation is completely unfounded. The world is not blind to the truth that who is keeping the canal neutral and thriving and who keeps threatening to “take back” the canal. These allegations against China are merely a reflection of its own actions. History has repeatedly demonstrated that the true threat to the stability of the Panama Canal has stemmed from the US intervention, not from other partnerships.

Second, he claimed that China exerts influence on Latin America through economic partnerships and infrastructure investments. The truth is that China-LAC economic cooperation is based on mutual respect, equality, mutual benefit, openness, inclusiveness and win-win cooperation, creating tangible benefits for both sides. China is Latin America’s second-largest trading partner and the top trading partner of Brazil, Chile, Peru, and other countries. From 2000 to 2022, the total value of goods trade between China and Latin America increased 35 times, while the region’s trade with the rest of the world grew only fourfold during the same period. In the first three quarters of 2024, trade in goods between China and Latin America reached US$427.4 billion, marking a year-on-year increase of 7.7%. The total trade volume is expected to surpass US$500 billion for the full year.

A report by Latin America and the Caribbean Network on China, a network of studies and research on China in LAC, revealed that China-aided infrastructure projects in the region have generated over 777,000 jobs between 2005 and 2023. Unlike the US, which ties aid to political conditions and demands reforms aligned with Western standards, China’s investments come with no political strings attached. LAC countries are choosing China because of the clear economic benefits, not coercion.

Third, he suggested that China uses the Belt and Road Initiative (BRI) as “debt trap diplomacy.” However, the numbers and facts tell a different story. Since 2013, China has signed over 200 BRI agreements with more than 150 countries worldwide, including 22 LAC countries. China’s financial engagement has helped LAC and other developing countries address critical infrastructure needs, build self-sufficiency, and has played a vital role in driving regional growth. Ecuador, for example, once reliant on electricity imports, now has multiple hydro-power plants built with China’s help, significantly reducing power shortages. Despite the increase in Chinese lending over the past two decades, these loans do not pose debt risks for borrowing countries. According to the World Bank, in 2022, bilateral debt owed to China accounted for only 0.7% of LAC’s total external debt stocks (excluding high-income countries), with China’s major debtor countries in the region like Ecuador, Brazil, and Argentina owing approximately 6.8, 0.6, and 1.2%, respectively. Moreover, US loans often come with harsh austerity measures, while China provides flexible repayment terms.

As a 2021 article in The Atlantic points out, the debt-trap narrative is just a lie fabricated by some Western politicians. It is rhetoric employed by the US and some other Western countries to defame and smear China and disrupt China’s cooperation with other developing countries.

Fourth, he advocated limiting the involvement of Chinese tech companies in certain countries, particularly in the development of 5G infrastructure. China remains committed to enhancing cybersecurity and fostering cooperation based on mutual benefit. Chinese companies, known for their cutting-edge 5G technologies and secure, efficient services, have gained widespread global recognition. Attempts to smear and suppress Chinese tech firms highlight the US’s protectionist approach, where it has repeatedly leveraged state power to suppress China’s development, disrupt global supply chains, and enforce economic decoupling — all in an effort to maintain its own economic dominance. It will not hinder China’s progress or diminish its cooperation with other countries. Instead, such actions will only limit opportunities for those who choose to engage in baseless restrictions rather than open collaboration.

Fifth, he praised Guatemala for its recognition of Taiwan as a “democratic nation.” This statement is not only a blatant violation of the one-China principle but also a serious interference in China’s internal affairs. Taiwan is an inalienable part of China’s territory and the government of the People’s Republic of China is the sole legal government representing the whole of China. One hundred and eighty-three countries in the world have established diplomatic ties with China, including the United States itself, which fully shows that supporting the one-China principle is the right thing to do and where the public opinion trends and the arc of history bends. The Taiwan question is purely China’s internal affair, which brooks no foreign interference. The greatest challenge to cross-Strait peace is “Taiwan independence” separatist activities and foreign interference and disruption. The US needs to abide by the one-China principle and the 3 China-US Joint Communiqués, act on its commitment of not supporting “Taiwan independence,” stop abetting “Taiwan independence” separatist forces and stop interfering in China’s internal affairs on the Taiwan question.

In an era of global uncertainty and transformation, China has been and will always stand ready to work together with other countries, including Grenada, to foster peace, development, and shared prosperity. Since China and Grenada resumed diplomatic ties in 2005, our two countries have conducted practical cooperation in a wide range of fields. China has continuously supported Grenada in its efforts toward economic and social development, people empowerment, and livelihood improvement. Our cooperation has yielded fruitful results that benefit our countries and peoples. The recent official visit by Prime Minister Hon. Dickon Mitchell to China, resulting in 14 cooperation documents, exemplifies China’s genuine commitment to mutual growth and development. China will work with Grenada and all other countries, keeping in mind the well-being of the entire humanity, transcending estrangement and conflict, and jointly striving for shared prosperity.

It is time for some of the US politicians to replace rhetoric with facts and respect the sovereign choices of LAC countries, allowing them to determine their own destinies based on mutual cooperation, not intimidation.