China's investment in Latin America is substantial and growing, focusing heavily on natural resources (lithium, soybeans, minerals), infrastructure (ports, energy, railways), and, increasingly, the digital and tech sectors, reaching roughly $14.7 billion in direct investment in 2024, driven by the need for food security, trade diversification and infrastructure. This positions China as a major economic player alongside the United States, with key partners such as Brazil, Chile and Peru.

As a matter of fact, China has become the leading partner for most South American nations, a significant advancement from the early 2000s, when the US held that position.

Indeed, China's growing engagement with Latin American and Caribbean countries has become one of the most notable features of its external economic and diplomatic strategy in recent years. Its release of a new policy paper on Latin America and the Caribbean at the close of 2025 marked a significant milestone in Beijing's diplomatic and development approach for the Western hemisphere. This is the third such document following papers issued in 2008 and 2016.

The latest document reflects Beijing's intention to elevate cooperation with LAC countries in a comprehensive and mutually beneficial manner, building on decades of growing interaction and shared interests.

At the heart of China's approach is the idea of partnership built on mutual benefit and respect. Rather than framing its engagement in ideological or geopolitical terms, Beijing emphasizes development, connectivity and practical cooperation. The policy document outlines a broad framework that spans trade, investment, infrastructure, finance, technology, education, culture and people-to-people exchanges.

Together, these areas form a holistic vision of engagement designed to support integrated economic growth and social development across the Latin America and Caribbean region.

Economic cooperation remains a central pillar. China views the region as an important trade partner with strong potential for complementary growth. Countries in the region offer abundant natural resources, expanding consumer markets and increasing industrial capacity, while China brings manufacturing strength, capital, technology and experience to large-scale developments. The emphasis is on facilitating smoother trade flows, encouraging investment that aligns with local development priorities, and strengthening financial cooperation that can reduce risks and improve resilience.

Infrastructure development plays a particularly important role in this approach. Many countries in the region face bottlenecks in transportation, logistics, energy and urban services that restrict economic efficiency and competitiveness. China's experience in building ports, railways, highways, power grids and digital infrastructure is presented as a resource that can support modernization efforts, similar to what China has been doing in Africa. By improving connectivity within countries and across borders, infrastructure cooperation can help lower costs, stimulate trade and support industrial upgrading.

Technology and innovation are also increasingly prominent. China's engagement with the region is no longer limited to traditional sectors but extends to digital connectivity, telecommunications, scientific research and emerging technologies. Joint research initiatives, technology parks and digital infrastructure projects can help build local capacity while fostering deeper economic integration.

Another key dimension is social development. China's strategy places emphasis on cooperation in education, vocational training, healthcare and public administration. Scholarship programs, professional exchanges and joint training initiatives aim to enhance human capital and create lasting connections between societies. Cultural exchanges, tourism cooperation and media collaboration are intended to deepen mutual understanding and reduce barriers caused by distance and unfamiliarity.

As global challenges such as climate change, economic uncertainty and technological transformation intensify, collaboration across regions becomes increasingly important. China's evolving engagement with Latin American and Caribbean countries reflects a belief that these challenges are best addressed through partnership rather than isolation or force.

Sustainability is also increasingly embedded in China's engagement with the region. Cooperation in renewable energy, green finance, climate-resilient infrastructure and environmental protection reflects a shared recognition that economic growth must align with long-term ecological responsibility. From solar and wind power projects to sustainable transportation and water management, China's experience in green development offers practical solutions that can support the region's transition toward low-carbon growth. This focus not only addresses climate challenges, but also helps create new industries, skilled jobs and more resilient economies across the region.

This is consistent with China becoming greener over the last few years, since China is reducing its dependence on coal. Its goal is to reach its carbon emissions peak before 2030 and become carbon neutral before 2060, as listed in its 14th Five-Year Plan (2021-25).

China, as the world's largest market and equipment manufacturer in the field of clean energy, has conducted green energy cooperation with more than 100 countries and regions. China's approach toward the Latin America and Caribbean region points to a future of deeper engagement driven by development needs rather than ideology or politics. Beijing also highlights respect for sovereignty and national development paths as a guiding principle in its external dealings. Cooperation is framed as voluntary, consultative and responsive to local needs rather than something imposed from the outside.

By focusing on infrastructure, technology, human capital and cultural exchange, Beijing seeks to build relationships that extend beyond short-term economic gains. The aim is to create networks of cooperation that support shared growth and stability over the long run.

Related to all this, the recent developments in Venezuela have also brought renewed attention to the importance of stability and dialogue in Latin America. Following the latest political events surrounding Venezuelan President Nicolas Maduro, the situation has once again highlighted the region's complex domestic dynamics and the need for constructive international engagement that prioritizes economic recovery and social well-being.

From China's perspective, continued cooperation with Latin American countries, including Venezuela, is centered around respect for sovereignty, noninterference and support for development-oriented solutions. In this context, Beijing's broader regional approach emphasizes economic cooperation, infrastructure development and humanitarian considerations rather than political alignment, reinforcing its long-standing principle of engaging the region through pragmatic and development-focused partnerships.

As global challenges such as climate change, economic uncertainty and technological transformation intensify, collaboration across regions becomes increasingly important. China's evolving engagement with Latin American and Caribbean countries reflects a belief that these challenges are best addressed through partnership rather than isolation or force. If implemented with care and mutual respect, this approach has the potential to contribute positively to development in the region while strengthening China's role as a positive participant in global cooperation.

The author is a fintech adviser, researcher and former business analyst for a listed company.

The views do not necessarily reflect those of China Daily.