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Li keqiangs visit to Latin America

At present, the global economic recovery is slow, the economic growth has slowed both in China
and Latin American, facing many challenges.
In this case, the Chinese premier Li keqiang arrived Brazil on May 18, started the official visit to
the four countries of Latin America.
Li keqiangs visit to Latin American countries will further deepen China's integration with the
region's interests, booster to accelerate China's relations with Latin America for an all-directional,
multilevel and wide-range development new pattern.
On May 18, China's premier Li keqiang arrived in Brazil, marking the official start of the itinerary
of the visit to the four countries of Latin America.
Prime minister li keqiang and Brazil rousseff witnessed the two sides reaching an extremely
fruitful cooperation.
During the visit of May 18 to 21, during the visit, the two sides made joint statement between
China and Pakistan government, signed a number of cooperation agreements covering industrial,
energy, mining, agriculture, services and infrastructure.
And then, Li will also visit Peru, Colombia, Chile in turn.
It is understood that the prime minister Li keqiang's visit will focus on the capacity cooperation as
the breakthrough to realize the transformation of the economic and trade relations and create a
upgrade for china-latin America relations.
On local time May 19, Li keqiang delivered a speech on business summit between China and
Pakistan stressed that China would like to discuss with pull production capacity of the "three by
three" new mode of cooperation:
One is to meet the needs of Latin American countries, the joint construction of logistics,
information and power three thoroughfare, realizing the continent's connectivity;
Two is to follow the rules of market economy, realize the benign interaction cooperation way of
enterprises, society and government;
Three is around the cooperation project, develop three financing channels of funds, credit, and
Latin America at the Chinese academy of social sciences research center, the executive director of
the Brazil zhi-wei zhou said to China economic times reporter, strengthening of the capacity of
cooperation of both sides is also in order to make the huge economic and trade relations can
sustainable development, is a kind of mutually beneficial relations between us.
Ya-xing wang, deputy director of the China people's university graduate school of business trade,
thinks that in recent years, China invested a lot in Latin America with big strength, further enhance
cooperation with Latin America is also our extension of "One belt and one road" strategy.
At present, China is the second largest trading partner and the third largest source of investment in
Latin America.
In 2014, trade value reached 263.6 billion US dollars, up 0.8% from a year earlier.
Earlier this year, Latin American and Caribbean countries community BBS in China the first
ministerial conference, pull in to trade at $500 billion for 10 years, the investment stock of at least
$250 billion.
Infrastructure cooperation is the key
In the China-Latin total body ministerial meeting, the two sides put forward with energy resources,

infrastructure construction, agriculture, manufacturing, innovation of science and technology,

information technology for cooperation, advance of industry docking.
Zhi-wei zhou thinks, from the short term, the six key areas of cooperation settled in the meeting,
infrastructure construction is undoubtedly the most preferred, because it can achieve the most
efficient cooperation areas.
Ya-xing wang, also thinks of the cooperation will focus on infrastructure construction and
investment cooperation.
And among them, the "two ocean railway" attached popular attention.
On May 19, the two countries announced the launch the feasibility of the basic research work of
the "two ocean railway".
Ya-xing wang said: "from the perspective of geography has the advantages of a railway between
Brazil and Peru will be very great."
Brazil's ambassador to China also said Leonard mlodinow across the Atlantic and the Pacific,
Brazil, Peru's 5000 kilometers long rail links would be a win-win results.
Zhi-wei zhou told reporters that "two ocean railway" is a typical example, reflecting the strong
demand in the field of infrastructure of Latin America.
Li keqiang's visit to pull in the Latin American media is looking forward to cooperation in the
field of infrastructure to achieve, the mainstream media in Brazil Sao Paulo newspaper on May 19,
commented that China investment in Brazil for large pull local infrastructure construction, which
is the Brazilian government mired in an economic crisis couldn't solve on its own conditions.
At present, both China and Latin American countries face all kinds of problems and challenges.
Zhou Zhiwei said that China is faced with the problem of downward economic growth, at the
same time needs to adjust and optimize industrial structure upgrade, and Latin American countries
are also to adjust industry, the core is the promotion of the competitiveness of the industry, the
purpose is to improve the position of Latin America in global value chain.
In this process, why the two sides can hit it off?
Zhou Zhiwei believes that China has a spare production capacity, production capacity in China
also have high technical content, at the same time, under the "going out" strategy, it formed a
complementary relationship between China and Latin America.
The Chinese academy of social sciences researcher at the institute of Latin American YueYunXia
pointed out that the core problem is the insufficient investment of Latin America.
Under the condition of cooperation in economy, this kind of cooperation is a strong support to
them. "China structural adjustment and Latin America industrial upgrading makes both parties
have the possibility of docking. And there is also necessary for Latin America and us cooperation,
for the past emphasis on commodity exports enables Latin America's economic to face many
challenges, such as a problem of industrialization, Latin America is eager to change that." Zhou
Zhiwei said.
Tsinghua university center for economic research in China and the world, researchers Yuan Gang
Ming thinks that the both sides having their own difficulties is the opportunity to cooperate.
Through production cooperation, both sides of the difficulties can be solved to a certain degree.
Such as Latin America can alleviate the lack of infrastructure and the construction technology,
equipment, and China's project to sea can avoid the domestic investment funds and return bad
problem, and ease China's overcapacity situation, especially iron and steel industry such as

seamless steel pipe and welded steel pipe overcapacity problems.

YueYunXia also said the cooperation capacity can solve the decline of the domestic investment of
China to a certain extent, also help Chinese enterprises to expand enterprise scale, improve the
efficiency of enterprises, and create more space for innovation.
Upgrade of the trade and economic cooperation
China and Latin American countries has a good tradition of economic and trade cooperation for a
long time, however, under the new period, the partnership needs a new change of the past.
Zhou Zhiwei told reporters, "in the past China and Latin America's highly complementary in
resources and energy supply and demand, but now in Latin America by commodity is hard to
maintain sustained growth in this cooperation. Now, one is to increase the diversification of export
products of Latin America, the second is to increase the added value of export products."
YueYunXia pointed out that in the past dozen years trade in primary products accounted for a large
proportion of the background of this kind of phenomenon is in the process of economic
development in China the great demand for primary products is driven by the rise in the price of
the product, led Latin American exports to China.
And now, the international commodity prices decline phenomenon is also the result of the China's
own transformation growth pattern, at the same time is the old model needs to change.
Future bilateral trade in primary products proportion will be reduced gradually, the proportion of
investment will increase, along with our country manufacturing industry to upgrade efficiency,
innovation, excess capacity will gradually transferred out of traditional industries.