China-LatAm trade set to skyrocket

The steady advancement of the Belt and Road Initiative, coupled with a growing network of bilateral free trade agreements, will unlock fresh potential for trade and investment ties between China and Latin America in the years ahead, said market watchers and exporters on Monday.

As infrastructure connectivity improves under the BRI through enhanced port facilities, logistics networks and digital trade corridors, they said regional integration is advancing, reducing transportation costs and expanding access to global markets.

Although several countries are facing challenges posed by protectionism and unilateralism, high-standard free trade agreements, such as the China-Chile FTA, China-Ecuador FTA and China-Costa Rica FTA, will serve as benchmarks for future economic partnerships, promoting rules-based trade, intellectual property protection and sustainable development practices, said Wang Qian, a researcher specializing in international trade at Shanghai University of International Business and Economics.

As China continues to expand its high-standard opening-up, and Latin American countries pursue diversification strategies, the evolving bilateral framework will not only deepen economic interdependence but also foster inclusive growth and shared prosperity across both sides, said Wang.

China is currently negotiating upgrades to the China-Peru FTA and discussing new FTAs with Panama and Honduras. Additionally, the nation has conducted a feasibility study on a China-Colombia FTA, aiming to strengthen bilateral trade and economic cooperation, according to information released by the Ministry of Commerce.

Sun Yanfeng, a researcher specializing in Latin American studies at the Beijing-based China Institutes of Contemporary International Relations, said that the complementary nature of the two sides' economies further amplifies the potential for deeper cooperation.

Latin America's abundant natural resources and agricultural output align seamlessly with China's manufacturing prowess and vast consumer market, creating robust trade synergies, said Sun.

"Chinese companies, such as BYD, China General Nuclear Power Corp and China COSCO Shipping Corp, are also increasingly investing in sectors such as renewable energy, manufacturing, transportation, mining and agribusiness across Latin America, bringing capital, technology and know-how to local economies," he added.

China's direct investment flow to Latin America totaled $14.71 billion in 2024. During the first quarter of 2025, Chinese investment in the region reached $270 million. As of March 2025, Latin American countries had established a total of 37,000 businesses in China, data from the Ministry of Commerce showed.

China-Latin America trade volume reached a record high of $518.47 billion in 2024, up 6 percent year-on-year. Their total trade value stood at $162.21 billion between January and April, said the General Administration of Customs.

Changzhou Samkit Electric Co Ltd, a Changzhou, Jiangsu province-based home appliance manufacturer, shipped 1.15 million yuan ($159,420) worth of smart vacuum cleaners to Brazil earlier this month and will participate in more trade shows in Latin America in the second half of this year, according to Nanjing Customs.

"Shifting our focus from a single market — primarily the United States — to emerging markets like Brazil will be our most important transformation this year," said Qiu Riju, the company's general manager.

Chaoyang Jinda Molybdenum Co Ltd, a ferromolybdenum and molybdenum oxide manufacturer based in Chaoyang, Liaoning province, saw its exports soar 19 percent on a yearly basis to 260 million yuan in the first four months, with Latin American economies serving as the primary destinations, according to Shenyang Customs.

"Driven by rapid urbanization and industrialization, Latin American countries such as Peru and Chile have seen a sharp rise in demand for our products in recent years," said Li Jinling, vice-president of the company.