Chinese premier's visit to LatAm to enhance capacity cooperation

 

Infographics by Xinhua.

In fact, the industrial capacity cooperation, from Rio subway serving the Olympics to ultra-high voltage power transmission program, from hydropower stations to railways along the Pacific and the Atlantic, has already become a new growth point of Sino-Latin American cooperation.

During his visit, Li is expected to ride the Rio subway to experience the Chinese-exported product and visit an expo on Chinese equipment manufacturing industry, among other activities.

Li's visit is also aimed at augmenting economic complementarity with Brazil, Colombia, Peru and Chile, which are important countries in Latin America and major economic trade partners of China in the region.

China is committed to expanding and deepening all-round cooperation with these countries and building China-Latin America community of common destiny.

Since the 2008 financial crisis, Latin America has met some obstacles in economic growth. It is now pressing ahead with industrial adjustments, but faces major challenges in funds, technology and experience.

As China, which owns these resources, has entered a more advanced stage of industrialization under the "new normal," it has found complementarity with Latin American countries.

Such cooperation is a win-win scenario. Latin America needs China's advanced and practical equipment and reliable industrial capacity to promote its infrastructure construction at the present stage, providing China a new driving force.

"For Latin American countries, the entrance of China's high quality equipment and technology with competitive price could help drive their economies and upgrade the industries," said Chen Fengying, a researcher with the China Institute of Contemporary International Relations.

The two sides enjoy great cooperation potential in infrastructure construction, especially in high speed railway, manufacturing industry, electronic business and industrial park construction, she said.

On the other hand, the experience China has gathered in the management of inequality and economic diversification is useful to Latin American countries and can be applied in their development, said Mario Pezzini, director of the the OECD (Organisation for Economic Co-operation and Development) Development Centre.

Such industrial capacity cooperation is widely welcomed by many countries. A recent example is that during Kazakh Prime Minister Karim Masimov's China visit in March, China and Kazakhstan signed 33 deals on industrial capacity cooperation worth 23.6 billion dollars.