China and CELAC sign 2026-2030 action plan with $45 billion in investment

Foreign ministers of the China-CELAC Forum (Community of Latin American and Caribbean States) concluded the Cooperation Summit in Beijing by signing the “Joint Action Plan 2026-2030,” which commits Chinese financing and preferential loans of $45 billion for megaprojects in infrastructure, critical mineral processing and wind farms in Latin America.

The agreement stipulates that 30% of Chinese investment must include effective technology transfer and industrial processing at the source, mainly in the value chains of lithium, copper and processed agribusiness.

The agreement also formalized the use of the yuan (RMB) in the foreign exchange settlement mechanism for cross-border trade, reducing the use of the commercial dollar.

The U.S. State Department issued a statement warning that the expansion of Chinese financing in strategic sectors of South America “compromises digital governance and the security of the hemisphere’s critical infrastructure.”

What does SurEconomics think?:

Undoubtedly, requiring local value added and using national currencies in trade with China is a pragmatic step toward sovereignty, defying Washington’s historical tutelage. However, it carries the risk of greater economic dependence on China for Latin American countries.

Sources:

·       Ministry of Foreign Affairs of the People’s Republic of China: Joint Action Plan China-CELAC Forum 2026-2030

·       ECLAC: China-Latin America Economic Relations: Assessment and Outlook