China Offers $9.2bn Credit to Latin America Amid US Trade Tensions

• May 14, 2025

China has announced a $9.2 billion credit line for Latin American and Caribbean countries as part of a broader cooperation plan, highlighting Beijing’s efforts to strengthen ties in the face of ongoing trade tensions with the United States. The offer was made during the fourth China-Community of Latin American and Caribbean States (CELAC) Forum held in Beijing on May 13.

Chinese President Xi Jinping told delegates, including the presidents of Brazil, Colombia, and Chile, that both China and Latin American nations share a history of independence and a common pursuit of fairness and justice. He said the partnership is aimed at achieving win-win cooperation while resisting protectionism and trade wars, a subtle reference to US policies under former President Donald Trump.

Marking the forum’s 10th anniversary, Xi praised the progress made, comparing the relationship to a sapling that has grown into a towering tree. He emphasized deepening cooperation in trade, infrastructure, agriculture, and emerging fields like clean energy, 5G telecommunications, and artificial intelligence.

Trade between China and CELAC countries has grown rapidly, reaching $515 billion in 2024, up from just $12 billion in 2000. China has now surpassed the US as the top trading partner for key economies like Brazil, Peru, and Chile. Brazil alone accounted for nearly half of China's $240 billion imports from the region last year.

Xi outlined five cooperation programs focusing on politics, economic development, security, and cultural exchange. These include annual visits to China for 300 CELAC political figures over the next three years, expanded investments, and greater imports of Latin American goods. China also pledged 3,500 government scholarships and visa-free travel for five Latin American countries, with plans to expand further.

China’s Global Security Initiative will offer law enforcement training and equipment to CELAC nations. The $9.2 billion credit line will be denominated in yuan rather than US dollars, reflecting China’s goal of reducing reliance on the dollar in global trade.

However, the credit line is about half of what China offered in 2015, indicating a more cautious lending approach as its economic growth slows. Despite this, Colombia’s President Gustavo Petro announced his country’s formal entry into China’s Belt and Road Initiative (BRI), joining two-thirds of Latin American countries already part of the infrastructure and investment program.

Still, Brazilian President Luiz Inácio Lula da Silva urged caution. He stressed that Latin America’s future should not depend on external powers, whether it be China, the US, or the European Union, but rather on the region's own ambitions.

With the global economy facing rising tensions, China’s push into Latin America shows its intent to create new trade and diplomatic pathways, further challenging US influence in the region.