China is a major actor in the world economy and international politics. It is the second biggest economy in the world and by the end of this decade it will become the biggest in the world. It is already the biggest destination for more than 130 countries exports of goods, a major investor in many developing countries, and the main lender for many of them. Under Xi Jinping leadership China´s foreign policy has become more assertive and with Trump policy of confronting China (that to a big extent will be followed by Biden ) its competition with U.S. is seen as inevitable. In this article a review of China’s foreign policy is given. First, its foreign policy before Xi Jinping is analyzed; Second, the current China foreign policy is reviewed; Third, China foreign policy toward Latin America is seen; and Last, some conclusions are given.

1. China ForeignPolicyat present
Carlos Aquino*
Chinaisa majoractor in the worldeconomyand international politics. Itisthe secondbiggest
economyinthe worldand bythe endof thisdecade itwill become the biggestinthe world. It
isalready the biggestdestinationformore than130 countriesexportsof goods,amajor
investorinmanydevelopingcountries,and the mainlenderformanyof them.
Under Xi JinpingleadershipChina´sforeignpolicyhasbecome more assertiveandwithTrump
policyof confrontingChina(thattoa big extentwillbe followedbyBiden1
) itscompetition
withU.S. isseenas inevitable.
In thisarticle a reviewof China’sforeignpolicyisgiven.First,itsforeignpolicybefore Xi Jinping
isanalyzed;Second,the currentChinaforeignpolicyisreviewed;Third,Chinaforeignpolicy
towardLatin Americaisseen;andLast, some conclusionsare given.
A. China´sForeignPolicybefore Xi Jinping
Whenthe People ´s Republicof Chinawascreated in1949 it wasa poorcountry,and its
priority wasto ensure itsindependence,andlaterwhenitbroke withthe SovietUnion, itaims
was to fightagainstthe hegemonism, bothof UnitedStates andthe SovietUnion.
By the endof 1969, Chinahad establisheddiplomaticrelationswithmore than50 countries,
double of whatithad in 1955.
It established 5principlesof peaceful coexistence thathave guidedmuchof itsforeignpolicy.
They include: “mutual respect for sovereignty and territorial integrity, mutual non-
aggression, non-interference in each other's internal affairs, equality and mutual benefit,
and peaceful coexistence”2,
In the decade of the 1970s when itsaw the opportunityofferedbythe UnitedStates, China
establishedrelationswiththiscountryandwithmanyothersinthe West,tocounterbalance
the SovietUnion. InOctober1971 Chinaregainsitsseatinthe UnitedNationsandas a
memberof the five countrySecurityCouncil.
It alsohad as the cornerstone of itsforeignpolicythe maintenance of itsterritorialintegrity
(thatas many countries aspossible recognize thatTaiwanispartof China).
ChinainDecember1978 decidedtoundertake reformsandopen itseconomytogetout of the
backwardnessinwhichithadbeen,especially comparedwith countriessuchasJapan and
SouthKorea.
Under DengXiaopingleadershipChinaleavesbehind itsplannedeconomysystemtotake
advantage of the capital, know-how,andmarketsof the West.
1 See US White House: “Interim National Security Strategic Guidance”, march 2021:
https://www.whitehouse.gov/wp-content/uploads/2021/03/NSC-1v2.pdf
2 China´s MOFA website: The Five Principles of Peaceful Coexistence:
https://www.fmprc.gov.cn/mfa_eng/wjb_663304/zwjg_665342/zwbd_665378/t1179045.shtml#:~:text=They%20in
clude%3A%20mutual%20respect%20for,mutual%20benefit%2C%20and%20peaceful%20coexistence .

2. To ensure itsgrowth,China soughtto expandrelationswithmanycountries, consideringthe
provisionof natural resources,whichitdoesnothave inabundance comparedtoitsneeds.
Chinese economicgrowthsince 1979 is spectacular.In2010 it became the secondlargest
economyinthe worldsurpassingJapan.
DengXiaopingarguedthatChinese foreignpolicyshouldbe characterizedby"hidingstrengths
and waiting","hidingweaknesses",andnot"takinga leadershipposition".He arguedtokeepa
lowprofile (taoguangyanhui 韬光养晦)ininternational affairs.
The prioritywaseconomicgrowthand Chinashouldnotbe distractedfromthisgoal.
Chinasoughtto resolve itsproblemswithitsneighborssothatthisdoesnotdistract it from its
goal of economicdevelopment. Atthe endof the 1980s Chinasettleditsproblemswiththe
SovietUnion(whobecame Russia) andwithSouthKoreaestablisheddiplomaticrelationsin
1992 for example.
B. China ForeignPolicyin the present
It issaid thatChinaforeignpolicy haschanged fromDengXiaopingpolicyof “hide your
capacities,bide yourtime”toXi assertive foreignpolicy.Xi assumedpowerin 2012.
But thingsbeganto change before Xi became leaderof China.Bythe endof the 2000s, the
outcome of the great international financial crisisof 2008-2009 beganto change how China
saw the worldandits positioninit.The Chinese economycontinuedtogrow while many
countries,especiallyinthe West,sufferedeconomiccrisis.The Chinese feltmore confidentin
itseconomic,andpolitical system.
Besidesthis, Chineseeconomicgrowthbegantogenerate some apprehensionabroad,
althoughChinaemphasizedthatitsrise will be peaceful,thatitwill be a responsible
superpower,thatitwill seektodemocratizeinternational relations,andthatitwill support
multilateralism.
In fact, Chinapresence begantobe feltall overthe world.Bythe beginningof the XXI century,
it became the engine of the worldeconomy,anditsinfluence onthe movement of the price of
raw materials became evident. Itisinthisscenario that Xi Jinping,the mostpowerfulleader
that Chinahas hadsince Mao Zedong(Xi was electedSecretaryGeneral of the Communist
Party of ChinainNovember2012 and Presidentof the countryinMarch 2013) tookoffice.In
March 2018 the National People'sCongressremovedtermlimitsforthe PresidentandVice
President,sopavingthe wayforXi to remain inpowerif he wishestodoso (andmany thinkhe
wishthat).
Chinabeganto strengthenitspresence inthe world,especiallyinitsimmediatearea,EastAsia.
Its disputeswithJapan,Vietnam,and itsgreaterpresence inthe SouthChinaSeaare proof of
this.
Chinawantsto achieve adevelopedcountrystatusby2049. Itaims to reachthe rejuvenation
of the nation,andthe Chinese dream(proposedin2013: to achieve astrong,civilized,
harmonious,beautifulChina).Chinawantstoregainthe place ithad before itsforcedopening
to the world at the middle of the XIXcentury.For mostof the last2000 yearsChinawas the
biggestandmostadvancedeconomyinthe world,evenrightbefore itsforcedopeningwith
the Opiumwar of 1839-1840.

3. Chinawantsto have a greatervoice ininternational affairs.Itwouldlike tocontribute more
fundsto the WorldBank, the International MonetaryFund,butthe USwill notletit (as thiswill
meana major voice of Chinaon those organizations,withthe correspondingdecrease of
influenceof the US).
Anyway, Chinaisalsocreatingmechanismsto have agreaterfinancial presence inthe world,
to make betteruse of its huge international reserves,and(throughinstitutionssuchasthe
AsianInfrastructure InvestmentBank,the New DevelopmentBank,the SilkRoadFund),etc.,
participate inthe financingof developmentandinfrastructure of developingcountries.
It has plansto improve itsindustrial structure withMade inChina2025 (revealedin2015),and
the Beltand Road initiative (announcedin2013, whichhasfive priorityareasof cooperation:
policycoordination,connectivityof infrastructure,trade facilitation,financial cooperation,and
people-to-peopleexchange).
Chinawantsto establishitself asthe championof multilateralism(asopposedtoTrump's
unilateralism,somethingthatthe new Bidenadministration saidwillreverse). Chinastandsas
the standard-bearerof globalization,asithas beenthe greatestbeneficiaryof it.
It has a win-winproposal,of South-Southcooperation, andcontinuestopresentitself asthe
olderbrotherof developingcountries.
Trump's rise presentedachallengeforChina.Trumpisgone butthe majorguidelinesof its
foreignpolicywillcontinue,withthe difference thattoface Chinathe Bidenadministrationhas
saidthat it will workwithitsalliesand like-mindedparties.
In fact, Chinapresents amajor challenge toUS hegemony,the onlytrulyone uptonow.The
SovietUnionwasconsideredachallengerbutinfact itcouldnot winthat competition.Evenif
inmilitarytermsitachievedsome paritywithUS ineconomictermsitwas neveracompetitor.
At some pointinthe 1980s evenJapanwasconsideredbysome peopleachallengertoUS in
economictermsbutwiththe burst of itsbubble economyatthe beginningof the 1990s that
was notthe case. Japanlackedtwothingsto have challengedthe US.It direlylacks natural
resourcesandmilitarystrength(beingdependentinthe USfor itssecurity).
Chinaisdifferent.Itwill become the biggesteconomy,amongotherreasonsthankstoitshuge
internal market,anditsmilitarystrengthisincreasingwithtime.Butstill isbehindthe USin
some advancedtechnologieslike semiconductors,AI,nanotechnology,etc.
Withthe BidenadministrationUSispreparingtokeepaheadinthe advantagesthatstill have
visa vis China,and thiswill assure competition betweenthem,willpersist.The questionfor
some isif thiscompetitionwillescalate andbecome amilitaryone.Somesee ChinaandUS
fallingintothe calledTrapof Thucydides, wherethe hegemonstrugglestopreserve itsposition
againstan emergingpower(aswasthe case of Sparta againstGreece).
AlreadyChinainfluenceisbiggerinsome places,like inAfrica,andisbecomingbiggerinEast
Asia,andLatin America.Let´sfocusinLatin Americaregion.
C. China foreignpolicyin Latin America.
Chinapresence inLatin Americaisbecomingbiggerbythe time. WithoutconsideringMexico,
that have a strong relationshipwithUS, Chinaalreadyisthe biggesteconomicpartnerof the
region,one of the maininvestorsand the mainlender.

4. The People´s Republicof Chinabeganestablishingdiplomaticrelationswithmostof Latin
Americacountriesinthe 1970s afterrecoveringitsseatinthe UnitedNations.Buteconomic
relationswere stillweak,anditbegantoincrease afterthe 1990s.
At firstChinawasputtingemphasisinhavingLatin Americancountriesswitchrecognitionfrom
Taiwan. Of the 16 countries inthe world recognizingTaiwan,several of them (andthe biggest
ones),are inLatin America,like ParaguayandNicaragua.
EconomicrelationsbetweenChinaandLatinAmericabeganincreasingfromthe 1990s, thanks
to the growingappetite of Chinafornatural resourcesof the region.SpeciallyinSouth America
countrieshave plentyof copper(Chile andPeru),iron(Peru,Brazil),oil (Ecuador,Colombia,
Venezuela),soybeans(Argentina,Bolivia,Brazil),etc.Also,cheapmanufacturedgoodsfrom
Chinawere demandedfromthe region.
The regionbenefitedspeciallyfromthe increase inthe price of manyprimarygoodsthat
occurredbetween2002-2003 to 2011-2012. Chinastrongdemandforthose goodswas the
reason.Inthisway Chinabecome the biggestexportmarketof severalof them, beginningwith
Peruand Chile,where more thanhalf itscopper(itsmainproductexported) goestoChina.
Also, fromthe 1990s andspeciallyfromthe 2000s onward,Chinabeganto investinthe
extractionof natural resources,especiallyiron,copper,andoil.
But Chinaalsobecame importantforcountrieslike Venezuela,Ecuador,and Argentina,that
afterlosingaccessto the international capital markets,beganreceivingloansfromChina.
In thiswayChinabecome the majorexportdestinationformanyLatinAmericancountries,one
of itsmaininvestors,andforseveral of themtheirmajor,andunique lender. Moreover,upto
now,19 countriesinthe regionhave joinedChinaBeltandRoadinitiative (BRI).
Chinahave triedto workwithLatinAmericancountriesthroughthe China-CELACforum, butit
has notbeeneasy.The firstforumof the China and the Communityof LatinAmericanand
CaribbeanStates(CELAC) wasin2015 inBeijing,butthe regiondoesnothave acommon voice
visa visChina.That is why, mostof the relationsbetweenChinaandthe regionisdone
bilaterally.
Giventhe economicstructure of the region,dependentinthe exportof primarygoods,its
economicreliance inChinawillincrease. Also,asChinainvestsmore ininfrastructureprojects
and the regionisinmuch needof thiskindof investment,Chinainvolvementinthe regionin
thisaspectwill increase,helpedbythe BRIto whichmostof the countrieshave joined.
Also, the COVID-19pandemicsinasense isgettingChinaclosertothe regionas manyof them
will relyinthe Chinese vaccines.ChinaSinopharmandSinovac,two of itscompanies
manufacturingthem, are becomingmainproviders of the vaccines3
forsome countries,like
Peru.
Chinagrowingpresence inLatinAmericarose suspicion inthe US as the regionisconsideredits
backyard. One area of possibleconflictwill be whenthe countriesinthe regionadoptthe 5G
technology.UShas pushedothercountries,like UnitedKingdomandAustralia,toexclude
3Latin America turns to China and Russia for COVID-19 vaccines:
https://www.axios.com/russia-chinese-vaccines-latin-america-us-mexico-86a9daf5-4d39-421b-958a-40a457513e1c.html

5. Chinese companieslikeHuawei,fromparticipatinginthe nationals5Gnetwork. Ecuadorunder
Leningovernmentgotaloanform the US to prepaidChinese loanwiththe conditionthatit
excludesChinesetechnologyinthisfield4
.Butitseemsthatthe nextPresidentof Ecuador
couldbe a protégé of formerPresidentRafael Correa,AndresArauz,agoodfriendof China,
and thingscouldreverse.
*CarlosAquinoisDirectorof CEAS
4
FinancialTimes: US development bankstrikes deal tohelpEcuador pay China loans.
https://www.ft.com/content/affcc432-03c4-459d-a6b8-922ca8346c14