As China and Latin America continue to forge stronger economic and cultural connections, 2025 stands out as a year marked by significant milestones and increasing collaboration. With China playing a central role in Asia’s international engagement, Latin America is evolving beyond a traditional trading partner to become a key collaborator in areas like sustainability, innovation, and cultural exchange. This deepening, multifaceted relationship is actively contributing to a more interconnected and cooperative global economy.
Deepening Trade Partnerships
A significant marker of this evolving relationship is the 20th anniversary of the first free trade agreement between China and a Latin American nation in 2025. This foundational agreement was signed with Chile in 2005, initiating a substantial expansion in bilateral trade in both scope and volume.
Today, China is Latin America’s second-largest trading partner, with total bilateral trade demonstrating robust growth, reaching USD 518.47 billion in 2024, marking a year-on-year increase of 1.1%. This economic relationship is underpinned by strong complementarities: Latin America provides essential agricultural products, critical minerals, and energy commodities that meet Asia’s industrial demands, while Asian economies, particularly China, supply electronics, industrial equipment, and consumer goods to Latin America’s expanding markets.
Recent developments highlight this ongoing momentum. In 2024, China-Peru trade reached USD 43.36 billion, a notable sevenfold increase since their Free Trade Agreement came into force in 2010. Similarly, in 2024, bilateral trade between China and Chile reached approximately USD 61.66 billion, reaffirming China’s position as Chile’s largest trading partner, reflecting the deepening economic ties between the two nations, with China importing significant volumes of copper, lithium, fruits, and wine from Chile.
Investment and Financial Cooperation
Investment flows are also rising in infrastructure and key strategic assets, underscoring the long-term economic commitment between both regions. A notable example is the Chancay Port in Peru, a megaproject developed by COSCO Shipping Ports, with a total investment of USD 3.5 billion. The first phase, valued at USD 1.3 billion, was inaugurated in November 2024. This port is set to significantly reduce maritime transport time between China and Peru to just 23 days, lowering logistics costs by over 20%, and creating more than 8,000 direct jobs in Peru. It positions Peru as a crucial gateway for trans-Pacific trade.
Hong Kong, as a key international financial hub, plays a central role in facilitating investment flows. In 2021, Hong Kong and Mexico signed a bilateral investment promotion and protection agreement, spurring new capital inflows into Mexican states such as Veracruz, Guanajuato, and Yucatán. These investments span logistics, tourism, and manufacturing sectors.
Further momentum is being generated through trade-related legal frameworks. The updated Hong Kong–Chile Free Trade Agreement (effective in April 2023) and the Hong Kong–Peru Free Trade Agreement (signed in November 2024) include broader provisions for services, legal cooperation, and market access, facilitating deeper corporate engagement.
Hong Kong’s status as a major offshore RMB hub also enables cross-border transactions and capital raising activities. While Latin American IPOs on the HKEX remain limited, the city’s financial and legal ecosystem offers essential infrastructure for underwriting, arbitration, and regulatory compliance for outbound ventures.
At the subnational level, Chinese cities like Guangzhou are strengthening business diplomacy. Two key events illustrate this trend:
- On March 7, 2025, the “World Meets GZ — Latin America Investment Promotion Conference” was hosted at the Guangzhou International Cooperation Center (GICC). Supported by 11 Latin American consulates and institutions such as CW CPA, the event served as a strategic platform for local-government dialogue and private-sector matchmaking, advancing investment and industrial cooperation.
- On April 28, 2025, the “Uruguay Business Forum” organized by GICC brought together over 120 participants from China and Uruguay for policy exchanges, thematic presentations, and B2B sessions. This reflects the increasing use of city diplomacy to strengthen international commercial relationships.
In a further effort to strengthen bilateral platforms, Yangpu District of Shanghai and Apex-Brasil, Brazil’s official trade and investment promotion agency, signed a memorandum of cooperation on June 5, 2024, to establish the first Brazil Center in Asia. This initiative—announced during the China–Brazil Business Seminar in Beijing—aims to promote collaboration in green development, sustainable agriculture, the bioeconomy, and digital innovation. The Brazil Center will serve as a hub for Chinese and Brazilian enterprises to engage in market entry, technology exchange, and business development activities. This subnational partnership underscores the role of local governments in driving deeper, diversified economic ties between China and Latin America.
Beyond traditional sectors, China–Latin America investment is expanding into high-impact, strategic areas. As both regions prioritize sustainable development, collaboration is accelerating in clean energy, green infrastructure, and environmental technology. These efforts are no longer aspirational—they are being realized through significant, on-the-ground projects.
In Brazil, China’s State Power Investment Corporation (SPIC) is deepening its presence in the renewable sector. In 2023, SPIC acquired a 70% stake in two major greenfield solar projects: Panati-Sitiá (292 MWp) in Ceará and Marangatu (446 MWp) in Piauí. By year-end, Panati-Sitiá had begun energization and was connected to Brazil’s National Interconnected System (SIN). Marangatu received its environmental license and is in the final phase of regulatory approval. These milestones underscore how Chinese firms are aligning with Brazil’s solar potential to deliver long-term clean energy solutions.
In the vital lithium industry, Chile—home to over 33% of global reserves—has become a key supplier for China’s electric mobility ambitions. Tianqi Lithium, one of China’s leading producers, holds a major stake in SQM, Chile’s top lithium exporter. This strategic position strengthens China’s access to essential battery materials for its fast-growing electric vehicle (EV) sector.
Simultaneously, Brazil’s “Lithium Valley” in Minas Gerais is attracting new attention. In late 2023, Chinese EV manufacturer BYD secured mining rights in the region, a critical move toward building a vertically integrated supply chain. BYD is now developing a lithium processing plant and battery production hub, supporting its global EV expansion from a Latin American base.
Uruguay is also emerging as a clean energy partner. Under its Green Hydrogen Roadmap, the country aims to become a major exporter of green hydrogen by 2030. Chinese companies have begun partnering in pilot projects to tap Uruguay’s vast wind and solar potential. With the government targeting 1–2 GW of electrolysis capacity, these efforts position Uruguay—and its Chinese partners—as key players in the hydrogen economy.
Together, these projects illustrate a broader shift: China and Latin America are building a new green value chain, from raw materials to renewable generation to advanced manufacturing. Their cooperation is not only strategic—it is transformational.
Cultural and Professional Exchange
The strategic partnership between China and Latin America extends beyond economic indicators to encompass growing cultural, educational, and social exchanges. These initiatives are fostering deeper understanding and appreciation between regions, laying a strong foundation for long-term collaboration.
One key platform is the “Discover the Beauty of China” initiative, launched in 2021, which has welcomed over 400 foreign diplomats for immersive tours across China. In September 2024, the program featured a standout event: the “Village Super League” (村超) International Friendship Match in Guizhou. Latin American and Caribbean diplomats, including Argentine Ambassador Sabino Vaca Narvaja, participated in a football match with local teams, praising the event as “a bridge of friendship” that brings communities and cultures together through sport and hospitality.
In November 2024, the Forum on Dialogue between the Civilizations of China and Latin America and the Caribbean was held in Lima, Peru. The forum explored themes such as indigenous heritage, cultural pluralism, and civilizational exchange, bringing together artists, scholars, and policymakers from both regions. It reinforced the idea that the bilateral relationship extends beyond trade into the realm of shared identity and mutual respect.
At the national level, countries like Argentina are deepening tourism and cultural outreach to Chinese audiences. Recent initiatives include expanding Mandarin-language services in hospitality, increasing Chinese signage at key destinations, and co-developing themed tourism offerings for Chinese travelers. From the breathtaking Iguazú Falls to the windswept coasts of Patagonia and the southern gateway city of Ushuaia, Argentina is positioning itself as a distinctive destination for immersive, experience-based travel. Latin American universities are launching new academic programs, such as Argentina’s first Master’s in China Policy, while over 47 Confucius Institutes and 6 Confucius Classrooms across the region continue to play a pivotal role in cultural education and academic engagement.
In Hong Kong, cultural exchange with Latin America is also gaining momentum. One notable example is the upcoming “Extravaganza – When Brazil Meets Hong Kong” cultural festival, scheduled for June 2025. Hosted at AIA Vitality Park, the event will feature Brazilian music, dance, visual art, and culinary experiences, creating a vibrant space for South–South public diplomacy. It is expected to promote not only cultural appreciation but also cross-sector opportunities in tourism and the creative economy.
These developments reflect a fundamental shift: the China–Latin America relationship is increasingly defined by intellectual and cultural partnership. Through education, tourism, academic research, and people-centered diplomacy, the two regions are weaving a multidimensional network of understanding and shared future.
Conclusion: A Strategic Partnership for the Future
As China and Latin America enter a new chapter of engagement, the foundation has already been laid for mutual growth, innovation, and cultural enrichment. From free trade agreements and green energy investments to vibrant artistic exchanges, the two regions are no longer distant players; they are increasingly interconnected partners.
For businesses in Hong Kong, the Greater Bay Area, and across Asia, Latin America presents not just a market, but a collaborative frontier rich in resources, creativity, and strategic alignment. Likewise, Latin American stakeholders are finding new pathways to scale and diversify through Asian capital, technology, and expertise.
At CW CPA, we believe this relationship will define many of the next decade’s success stories. Now is the time for companies to look west—to Latin America—not as a distant opportunity, but as a strategic extension of Asia’s evolving global footprint.
