Opinion | China's ties in 'America's backyard' grow as U.S. interest and influence ebb

By Augustus K. Yeung

Introduction

As the Beijing Winter Olympics is a welcomed event, bringing the world daily spectacular winter sports coverage on TV. The news that Argentina, a major country in Latin America or "America's backyard", is signing up for his country's Belt and Road Initiative (BRI) membership with President Xi Jinping of China as he visits Beijing and enjoys watching the games.

For China and Argentina, this latest news of closer economic relations building is "double happiness". In Chinese culture, this is the best blessing that one can hope to have!

Argentinian President Signed Up for China's BRI

"Argentina's entry into the Belt and Road Initiative is a significant advance in Beijing's bid to strengthen ties with Latin America, according to experts," reports Amber Wang for the Post. ("Argentina move 'opens door to region'. South China Morning Post. Sunday, February 13, 2022)

During a high-profile visit to Beijing for the opening of the Winter Olympics, Argentinian President Alberto Fernandez signed his country up for China's sweeping infrastructure programme, paving the way for investments worth more than US$23 billion.

Fernandez was one of the few leaders from South American – considered to be "America's backward" – to attend the opening ceremony amid a diplomatic boycott by the United States and other Western countries.

Argentina's signing on to the belt and road programme comes soon after Fernandez announced during a trip to Russia that his country must abandon its economic "dependence" on the US and the International Monetary Fund (IMF).

Argentina Sets the Trend to Join Beijing's BRI Among Peers

Argentina became the first among Latin America's Major Economies to join Beijing's initiative, a platform for Chinese investment in railway, ports and highways worldwide.

The two sides pledged closer ties in trade, currency, agriculture, energy and other areas after a meeting between President Xi Jinping and Fernandez.

Jiang Shixue, a professor and director at the Centre for Latin American Studies at Shanghai University, said the China-Argentina agreement was not only meaningful for bilateral relations but could promote Beijing's relations with broader Latin America, and other major economies might follow the trend.

Before Argentina's entry, a total of 19 Latin American and Caribbean (LAC) countries had joined the belt and road scheme, with the notable exceptions of Brazil, Mexico, Argentina and Colombia – the region's biggest economies.

Argentina's Entry to BRI is of "Symbolic Significance"

"Argentina is a very important country, both in terms of economic aggregate and political influence," Jiang said.

Yue Yunxia, a Latin America specialist at Chinese Academy of Social Sciences, said negotiations between Argentina and China on the belt and road memorandum of understanding (MOU) took a long time and the "hard-won" result was meaningful.

"As a major Latin American country, Argentina's entry to the Belt and Road Initiative is of symbolic significance, which is a breakthrough," Yue was quoted by mainland media outlet Yicai as saying.

President Guilolermo Lasso of Ecuador, which cut diplomatic ties with Taipei in December, also met Xi during the Olympics, bringing a memorandum of understanding between the two sides meant to pave the way for a trade deal at the end of the year, as well as fostering economic ties via the initiative.

What Else Do Experts Say about this New Development?

Mainland experts said closer ties between Beijing and South America were rooted in the complementary relationship of their economies, but some major countries in the region had been cautious about relations with China, a country viewed as competing with the US for geopolitical influence in the region.

China overtook Brazil as Argentina's largest trading partner in April, and is a major buyer of Argentinian soybeans and beef.

The total trade between China and the LAC region hit a record high last year exceeding US$450 billion, an increase of 41.1 per cent over 2020, meaning Beijing remains Latin America's second largest trading partner, according to data released by the General Administration of Customs of China.

"Dong Jingsheng, vice-director of Latin American studies at Peking University, said big economies in Latin America had been cautious about joining the belt and road, considering their close relations with the US, which regards Beijing as a threat in its backyard." ("Argentina move 'opens door to region'" South China Morning Post. Sunday, February 13, 2022)

Conclusion

US-China war of words is creating an unnecessary challenge for countries in the world amid the pandemic, which seems to be no end to it. This is how it is felt not just in Latin America, but in the Middle East as well, where China's influence is on the rise.

The Arab States are much more engaged in establishing business ties with China, though like their counterparts in Latin America are careful enough not to offend the United States.

Mexico, I have heard, is one country which is not at liberty to make friends with foes such as China, for "security reasons". The Mexicans say that they are living within sight of heaven. And yet burning in hell. The unfinished border wall built by Donald Trump is a telling example.

When will the United States realize that as a hegemony it is an impediment to monetary growth, economic prosperity and world peace?!

China's Belt and Road Initiative is taking shape in the Middle East and now in Latin America. Eventually, the United States will be a world-class loser, lost in the squabbles that it is creating.

The author is a freelance writer; formerly Adjunct Lecturer, taught MBA Philosophy of Management, and International Strategy, and online columnist of 3-D Corner (HKU SPACE), University of Hong Kong.

 

The views do not necessarily reflect those of DotDotNews.

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