China will extend RMB66 billion ($10 billion) in fresh credit lines to Latin American and Caribbean countries. The financing will be denominated in yuan and represents a further internationalization of the Chinese currency. The financing will be used for infrastructure and development projects.
Xi also announced visa-free travel between China and certain countries in the region. The move comes as China tries to encourage trade and investment links as the United States is putting more pressure on the region to remain in the U.S. sphere of influence.
However, in his speech Brazilian President Luiz Inacio Lula da Silva called on the region to remain independent from major powers: “It’s important to understand, [the fate of Latin America] doesn’t depend on anyone else, it does not depend on President Xi Jinping, does not depend on the United States, it does not depend on the European Union, it depends solely and simply on whether we want to be great or continue to be small.”
