China extended a credit line of $9.2 billion (€8.3 billion) to Latin American and Caribbean countries at a summit in Beijing on Tuesday, with one catch — the credit would be in the Chinese yuan currency, News.Az reports citing Deutche Welle.
The move, which excludes the global reserve currencies like the US dollar, is meant to push Chinese currency domination at a time the Asian superpower has been deepening its strategic ties in Latin America.
"Although China lies far from the Latin American and Caribbean region, the two sides have a time-honored history of friendly exchanges," Chinese President Xi Jinping told the opening ceremony of the China-CELAC Forum.
Chinese President Xi Jinping, center, Brazil President Luiz Inacio Lula da Silva, second left, Chile President President Gabriel Boric, left, and Colombia President Gustavo Petro at the China-CELAC Forum ministerial meeting in BeijingChinese President Xi Jinping, center, Brazil President Luiz Inacio Lula da Silva, second left, Chile President President Gabriel Boric, left, and Colombia President Gustavo Petro at the China-CELAC Forum ministerial meeting in Beijing
Leaders such as Brazilian President Luiz Inacio Lula da Silva, Chilean President Gabriel Boric and Colombian President Gustavo Petro were among those in attendance.
Xi likened the summit with the Latin American and Caribbean nations to a "great, sturdy tree." He then announced that China will implement a visa-free policy for five nations from the region and eventually extend it to more countries. Xi did not name the five countries at the summit.
Two-thirds of Latin American countries have joined Beijing's massive Belt and Road Initiative (BRI) infrastructure program. In countries like Brazil, Peru and Chile, China has surpassed the US as the biggest trading partner.
