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      Politics

      Capacity cooperation a win-win endeavor for China, LatAm

      1
      2015-05-22 14:54Xinhua Editor: Gu Liping

      Cooperation in production capacity has become a new point of convergence which serves the best interests of both China and Latin America.[Special coverage]

      First, cooperation with China may help revive Latin America's economy.

      Latin America, with great diversity and abundant resources, has been a major exporter of raw materials and products of low added value. However, after 10 years of sustained economic growth, the region has lost tailwind due to falling commodity prices, which, in turn, are a result of weak external demand.

      Chinese Premier Li Keqiang's visit to the continent came at a time when the two sides find their interests converge in areas beyond trade.

      Li's visit to Brazil, Colombia, Peru and Chile will highlight China-Latin America cooperation in aviation, machinery and equipment, auto and high-tech products, electricity, renewable energy and infrastructure.

      Second, cooperation in production capacity will help with the upgrade and transformation of the economies of both sides.

      As the global economy has been undergoing transformation, both China and Latin America are faced with the challenges of industrial restructuring and optimization to spur domestic development.

      China has long been labeled as the factory of the world, while Latin America has always been seen as a global supplier of raw materials. However, to realize faster and better economic development, both sides should upgrade their development models.

      Cooperation with China is essential for Latin America to make such a leap.

      Meanwhile, cooperation with Latin America could help China accelerate its pace in upgrading its equipment manufacturing industry, better compete at the global arena, and optimize its industries.

      Third, cooperation in production capacity between China and Latin America would benefit the people of the two sides.

      Inclusive growth, a rule China has upheld through the years in international cooperation, would contribute to employment, protect the natural resources and perform social responsibility while promoting economic growth for both sides.

      Moreover, cooperation in production capacity will help promote political, economic and cultural exchanges, and bilateral relations as well.

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