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Infra firms boost LatAm's development

By WANG KEJU | China Daily | Updated: 2025-05-16 00:00
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Latin America's rapid urbanization and industrialization have led to a rising need for improved transportation, energy, and telecommunication networks, presenting a significant opportunity for Chinese infrastructure firms to engage in mutually beneficial cooperation, analysts said.

The unique strengths and expertise of Chinese infrastructure firms, honed through decades of large-scale project execution, make them well-positioned to contribute to Latin America's development aspirations, they added.

From Chancay Port in Peru and Bogota Metro Line 1 in Colombia to Jamaica's first modern highway and an ultrahigh voltage power transmission line in Brazil, the scale of China-Latin America cooperation in the field of infrastructure has continued to expand in recent years.

China Development Bank told China Daily that it completed the latest round of RMB-denominated financing for an ultrahigh voltage direct current transmission project in northeastern Brazil, to facilitate the purchase of relevant large-scale equipment.

Brazil, a country of vast geographical expanse, faces the challenge of reconciling the uneven distribution of its abundant hydroelectric resources in the north with the concentrated power demand in the large cities of the southeast, said Cui Dawei, deputy director of the engineering technology department of State Grid Brazil Holding.

"Addressing this mismatch between energy supply and load has been a long-standing issue for Brazil's energy sector," Cui said. "China's experience in developing ultrahigh voltage direct current transmission projects has provided a viable solution to this challenge."

According to Cui, the 1,468-kilometer transmission line will transmit clean energy, including wind, solar, and hydropower, from the northeastern and northern regions of Brazil to the Federal District, home to the capital Brasilia, meeting the electricity needs of approximately 12 million people.

As of the end of April, China Development Bank has cumulatively provided around $165 billion in financing support to over 260 projects across 21 countries in Latin America.

China's infrastructure investments in Latin America span a wide geographical area, covering the major countries in the region and encompassing diverse sectors such as ports, power, railways, and urban transportation, said Wang Fei, associate researcher at the Institute of Latin American Studies, which is part of the Chinese Academy of Social Sciences.

From enhancing port capacities and upgrading power grids to building modern railways and urban transit systems, China's infrastructure projects have had a tangible and far-reaching impact on the economies and communities of Latin American countries, Wang said.

The substantial investment amounts and the associated job creation have been crucial in supporting the economic development and social well-being of the region, Wang added.

The cooperation models between China and Latin America have also been constantly improving, adapting to local conditions and market-driven principles, Wang said, adding that the two sides have explored a variety of collaborative formats, including joint ventures, public-private partnerships, and concession agreements.

Wang noted that the Belt and Road Initiative has provided important policy support for China-Latin America infrastructure cooperation.

So far, over 20 countries in Latin America and the Caribbean have joined the Belt and Road cooperation framework.

Qiu Xiaoqi, special representative of the Chinese government on Latin American affairs, said that looking ahead, Beijing will prioritize the enhancement of connectivity networks between China and Latin America, with a focus on building a comprehensive land-and-sea integrated connectivity system.

"China and Latin America are among the most dynamic and fastest-growing nations and regions, forming a crucial part of the Global South," Qiu said, noting that trade volume between China and the region reached $518.4 billion last year, more than double the volume of a decade ago.

By strengthening their unity and cooperation, the two sides not only have the potential to create a vast trans-Pacific supermarket, but also the unwavering drive to fend off the onslaught of unilateralism and protectionism, enabling their respective development and revitalization, Qiu added.

 

A view of a Chinese-invested industrial park in Trinidad and Tobago. ZHAO KAI/XINHUA

 

 

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