Hello everyone, I'm Lu Lu. Today, let's talk about China's insertion of the "Dinghai God Needle" in the backyard of the United States.
1. Milestones in China's strategic layout
The 31st Council of Ministers of Foreign Affairs of the Andes Community held in Bogotá, Colombia, unanimously approved and officially accepted China as an observer state of the organization.This historic moment marked a major breakthrough in China's influence in South America and also opened a new space for bilateral and multilateral cooperation.
As one of the oldest and highly integrated regional organizations in Latin America, the establishment and development of the Andean Community has always been closely linked with the goal of South American countries to pursue economic independence and regional coordination. The organization was founded in 1969, and its initial member countries include Bolivia, Colombia, Ecuador, Peru and Venezuela. The purpose of its establishment is to eliminate intra-regional trade barriers, coordinate economic policies and promote the economic integration and sustainable development of member countries.
After decades of development, despite Venezuela’s withdrawal in 2006, Bolivia, Colombia, Ecuador and Peru still have four full members, covering the western core of the South American continent, with a total population of more than 1,100 million, and a total economy of about 15% of the Latin American region.
It is worth mentioning that the organization’s member countries have rich mineral and agricultural resources, such as Peru’s copper mines, Bolivia’s lithium mines, Colombia’s coffee and Ecuador’s bananas.In addition, the organization has a voice in representing developing countries in South America in global economic governance and is an important platform for the Latin American region to defend its own interests and promote regional integration.
In this regard, the Chinese side expressed its willingness to jointly implement the "five projects" of jointly building the China-Latin community of destiny, opening up a new pattern of bilateral multilateral cooperation to promote each other.The members of the ANC have given high appreciation for China's accession, and the Colombian Foreign Minister clearly pointed out that "China is an important partner of the global Southern countries, and its status as an observer will bring technology, investment and market resources to the ANC, and help the region to get rid of dependence on a single economy", which expressed the urgent need for South American countries for pluralistic cooperation.
American short-sighted behavior
For a long time, the United States has regarded South America as its own "backyard", but since the 1980s, its policy towards South America has gradually shifted to "colonial development" based on resource plunder, ignoring local infrastructure construction and economic diversification.
The short-sightedness of the United States is mainly reflected in two core levels: First, the investment direction is unbalanced. In South America, American companies mostly focus on the extraction of petroleum, minerals and other resources, and account for the proportion of investment in roads, ports, electricity and other infrastructure that can benefit people's livelihood. Even only a few percent; Second, the United States pursues unilateral tradeism and forces South American countries to accept unequal trade terms by increasing tariffs, but engages in protectionism in its own agricultural subsidies, industrial tariffs and other fields, resulting in South American countries being at the low end of the industrial chain for a long time.
In contrast to this, China actively practices the concept of "compromising and building and sharing" in South America through the "Belt and Road" initiative.To take Peru as an example, China's investment in China's construction of Changi Port has become an important trade hub that connects China with the South American belly, not only shortened the time for South American mineral resources to China for 15 days, but also created thousands of local jobs, effectively driving GDP growth in the surrounding region.
However, the United States 'infrastructure investment in South America has almost stagnated. This "inaction" has made South American countries gradually realize that the United States cannot provide them with sustainable development opportunities, and China's cooperation model is more inclusive and reciprocal. This time, China's becoming an observer state of the United States is undoubtedly a "staking needle" in the backyard of the United States.
South America has been a long-suffering country.
In fact, South America has long been "bitter and beautiful". Earlier this year, the United States imposed tariffs of up to 50% on Brazilian goods on the grounds of "trade deficit", involving more than 2,000 products such as coffee, beef, iron ore and soybeans. This unilateralism has had a big impact on the Brazilian economy. The industry warns that if tariffs continue, Brazilian coffee exports to the United States will be reduced by 60% this year, and the direct loss may reach nearly $1 billion.
Faced with U.S. trade bullying, the Brazilian government quickly turned to diversified cooperation, using the China market as a "stabilizer" and signing the "Memorandum on Trade Facilitation in Agricultural Products" with China to simplify the inspection and quarantine process of soybeans and beef. Brazilian soybeans and iron ore exports to China also increased significantly year-on-year.
And Argentina, which is seen by the United States as a South American "Iron Belt ally", recently also hit the United States, this year Argentina's inflation rate was high, foreign exchange reserves dropped to historic low, soybeans, corn and other major export products due to high logistics costs, narrow market channels, a large amount of pressure in the port. Under the people's livelihood and economic pressure, the Argentine government announced the suspension of grain export tax, then Chinese buyers bought 20 ships of Argentine soybeans, and the United States has not sold soybeans to a Chinese ship.
Ironically, the day before Argentina announced the exemption from the grain tax, the United States just paid $ 20 billion in "development aid". many Americans say Argentina is "disbelieving," but in fact this is a big thing about Argentina's survival, and the people who caused such consequences are not others, it is the inevitable result of the United States ignoring the core demands of South American countries.
4. The Rise of the Global South
South America's strategic shift is not an individual case, but a miniature of the world's Southern countries repositioning the international order. China's cooperation in the Pacific island countries, ASEAN, Central Asia and other markets also flourishes. and the upcoming APEC summit in South Korea at the end of this month will be an important China-US game.
In short, the United States' "ignorance" and "plundering" of South America, in the end, all to China. From the acceptance of China as an observer, to Brazil, Argentina to deepen trade with China, to the Pacific island countries, ASEAN, Central Asia and China cooperation warming up, this series of changes is the inevitable result of the US policy short-sighted.
When the United States sees South America as a “background of arbitrary looting,” China sees the development needs of the South American country; when the United States pressures with tariffs and sanctions, China provides opportunities with investment and markets; when the United States engages in “camp confrontation,” China consolidates consensus with the “Global Governance Initiative.”
For the United States, if it continues to adhere to unilateralism and hegemony, the cost will inevitably be a decline in global influence, and China will continue to adhere to the philosophy of a community of destiny, working with the countries of the world, including South America, to drive the global economy toward a more open, inclusive, inclusive, balanced and win-win direction. In this game about the future, time stands on the side of cooperation, stands on the side of equality, stands on the side of respect for national sovereignty and development interests.