China Deepens Latin American Ties Following US Tariff Truce As Xi Blasts Trade Wars Again

Chinese President Xi Jinping urged peace and stability through cooperation and solidarity in a meeting with leaders of South American and Caribbean countries after halting a tariff war with the U.S.

According to a South China Morning Post report, Xi said, “bullying or hegemonism only leads to self-isolation.”

These were the president's first public reactions after China and the U.S. agreed to pause reciprocal tariffs for 90 days, in a boost to global markets.

“The world is undergoing a century of rapid change, with multiple risks compounding one another. Only through solidarity and cooperation can countries maintain world peace and stability,” Xi reportedly said.

Speaking at the China-CELAC forum, a collective that includes the Caribbean Community of Latin American and Caribbean States, Xi said that China would work with countries in the face of rising geopolitical tensions and bloc confrontations and the “surging undercurrents of unilateralism and protectionism.”

Xi said that China would provide 66 billion yuan (US$9.14 billion) in credit to the countries, increase law enforcement cooperation by training their personnel, and provide essential material support.

He also announced five programs involving China working with countries from the two regions over the next three years.

These included improved collaboration on international affairs, greater trade and cooperation through the Belt and Road Initiative, and cultural and people-to-people exchanges.

Xi’s outreach comes at a time when tariffs have threatened the economies of the developing countries of the region.

Brazilian President Luiz Inacio Lula da Silva said on Sunday he hoped to build an “indispensable” relationship with China, which is Brazil’s top trading partner.

China would also grant visa exemptions for a first batch of five Latin American and Caribbean countries to boost exchanges, Xi said.

The iShares China Large-Cap ETF (FXI) has surged nearly 20% year-to-date (YTD) while the S&P 500 is down 0.4%.

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