Sino-LatAm co-op in production capacity new point of convergence

Chinese Premier Li Keqiang (2nd L) greets workers in Rio De Janeiro, Brazil, May 20, 2015. Li took a ride on a Chinese-made subway train for the Olympic special line in Rio De Janeiro on Wednesday. [Photo/Xinhua]

BEIJING/MEXICO CITY - China-Latin American ties can be described as dynamic, with upgraded cooperation in production capacity and equipment manufacturing with a view to achieve mutual benefit.

Chinese Premier Li Keqiang arrived in Brazil's capital Brasilia Monday on the first leg of a four-nation tour that also includes Colombia, Peru and Chile.

In Brazil, China and Brazil have signed more than 30 agreements and a joint action plan, including trade agreements worth $27 billion.

The tour features highlighting Sino-Latin America cooperation in aviation, machinery and equipment, auto and hi-tech products, electricity, renewable energy, infrastructure beyond traditional fields such as oil and gas, mining and agriculture.

As the global economy has been undergoing a transformation, both China and Latin America are faced with the prospect of industrial restructuring and optimization to spur their respective domestic developments.

Latin America, with great natural diversity and abundant resources, has been a major exporter of raw materials and low value-added products. However, after 10 years of sustained economic growth, Latin America and the Caribbean have lost their tailwind, due to falling prices for raw materials and a drop in external demand.

With economic development challenges ahead, the continent aspires to diversify its exports, improve its infrastructure construction and upgrade its industrial formation.

"We have to change the pattern of production and promote production transformation, where other sectors that require more technology and innovation are developed, with more sophisticated human capital and better infrastructure," said Enrique Garcia, executive president of the Development Bank of Latin America.