The year 2010 marked the 30th anniversary of the establishment of diplomatic relations between China and Colombia. In a congratulatory message to President Hu, President Uribe said that Colombia would like to further boost friendly cooperation and relations with China, which is seen as one of Colombia's major strategic partners in the Asia-Pacific region. It is important to note that this is the first time Colombia has openly expressed that it views China as a strategic partner, although the two nations have not established an official strategic partnership.

Chinese President Xi Jinping (R) meets with Peruvian President Ollanta Humala in Brasilia, Brazil, July 16, 2014. [Photo/Xinhua]

Chinese laborers arrived in Peru as early as in the mid-1800s. It is estimated that around 2 million people of Chinese descent live in Peru today. These people have played an important role in building relations between China and Peru.

When Chinese President Hu Jintao visited Peru in November 2008, the two nations announced that they would set up an official strategic partnership. In April 2009, a free trade agreement was signed between the two countries, and it went into force on March 1, 2010.

It was in Peru that China made its first large investment in Latin America. In December 1992, China's Shougang Group took over 98.4 percent of shares in Hierro Peru at a price of US$120 million, US$80 million more than the offer price. It then set up the Shougang Hierro Peru, which obtained mining, prospecting and operating rights for all resources in a 670.7-square-kilometer area without time limit. According to the Chinese media, however, the company has been plagued by frequent labor strikes and was often pushed to the verge of collapse. In recent years, corporate-labor relations seem to have taken a turn for the better.

In the spring of 1970, future Chilean President Salvador Allende's wife, Hortensia, and their daughter visited China and were warmly received by Chinese Premier Zhou Enlai. Hortensia Allende told Premier Zhou that if her husband could win the election in October that year, Chile might be willing to establish diplomatic relations with China. Premier Zhou replied that the peoples of China and Chile were looking forward to seeing that day arrive. Soon after, Allende succeeded in the election, and China and Chile established formal diplomatic ties in December 1970.

Chile holds at least four "firsts" in its bilateral relations with China. It was the first South American country to establish diplomatic ties with China, the first Latin American country to conclude its World Trade Organization agreement with China, the first Latin American country to grant market economy status to China, and the first Latin American country to sign a free trade agreement with China.

During Premier Li's visit, China will strike some important deals with the host countries, probably including an agreement to construct a railway that runs across the South American continent. Moreover, the Premier's trip will be a good opportunity for both sides to deepen mutual understanding, particularly at a time when China's economy is growing less rapidly than before.

On the one hand, some Latin Americans have been complaining that China's importation of large amount of commodities, i.e., agricultural products and raw natural resources, have contributed to the so-called "reprimarization" and "recommodification" of the Latin American economy, leading to the region's failure to upgrade its economic structure. On the other hand, many Latin Americans have started to fear that China's economic "new normal" will result in lower demand for commodities, thus dampening commodity prices on the world market and reducing the region's export earnings.

So what is China to do?

The writer is a columnist with China.org.cn. For more information please visit: http://www.h5a3.com/opinion/jiangshixue.htm

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