China Cracks Open Latin America’s Door by Joining Andean Community as Observer

The 31st meeting of Andean Community (CAN)’s Foreign Ministers Council recently gave China the green light unanimously. Experts say this opens a crucial foothold for China to push industries like artificial intelligence and electric vehicles, leveraging the rich deposits of gold, copper, and lithium in CAN’s member countries.

On September 30, Colombian Foreign Minister Rosa Yolanda Villavicencio, Ecuadorian Foreign Minister María Sommerfeld, and Peruvian Ambassador to Colombia and CAN Secretary General Gonzalo Gutiérrez attended the CAN handover ceremony.

China’s Growing Role as the World’s Reliable Partner

According to the South China Morning Post, while the Trump administration was busy “hiking up trade barriers”, Latin American countries looked for reliable global export partners — and that’s China. Unlike the US, which often prioritizes its own interests, China is seen as a stable and committed ally.
 
Leland Lazarus of Lazarus Consulting, which advises on Sino-Latin ties, summed it up neatly: “In other words, China’s message is, while the US is closing shop, we’re still open for business.”
 
Set up back in May 1969, the Andean Community is a key regional economic group, based in Lima, Peru, with four members: Peru, Ecuador, Colombia, and Bolivia. Chile and Venezuela left earlier, in ’76 and ’06. Since 1999, China and CAN have maintained contact through consultations.

Founded in May 1969, the Andean Community is a key regional economic integration organization in Latin America.

Jiang Tianjiao from Fudan University’s BRICS Research Center says this is a “new phase” for China and Latin America relations. Getting observer status deepens economics and investment ties, and it’s a key strategic step for the Global South.
 
Joining CAN boosts cooperation with Latin America and strengthens the voice of developing countries through formal regional participation.
 
Counterbalance to US Tariff Wars

In the midst of Trump’s tariff battles, China stands as a defender of global order and a major developing country that offers stability. Jiang says China’s role in CAN helps member countries hedge against tariffs and find alternative markets.
 
As an observer, China provides Latin America with more reliable export routes through regional cooperation and strengthens South-South collaboration against unilateral US pressure.

Lazarus highlights that China’s observer role in CAN offers a channel to advance its global governance proposals, like the recent initiative unveiled at the Shanghai Cooperation Organization summit in Tianjin.
 
He also points out the natural fit between CAN’s treasures of gold, copper, and lithium and China’s need for materials for AI and electric vehicles.
 
Bilateral relations between China and Latin America have broadened and grown in recent years. Latin America’s resource richness meshes well with China’s market and tech strengths, promising mutual benefits.
 
Fostering these links and bringing industrial chains together will help Latin America modernize sustainably and open fresh opportunities for building a China-Latin America community sharing a common destiny, while invigorating global economic governance.
 
China to Push Regional Integration Forward

CAN members see China’s observer status as historically significant, expecting it to boost cooperation, economic integration, and sustainable development, safeguarding developing countries’ shared interests.
 
Chinese diplomat Zhang Liping from Colombia’s embassy expressed readiness to implement the “five major projects” under the China-Latin America community framework and start a new wave of bilateral and multilateral cooperation for mutual benefit.
 
China’s Track Record of Growing Latin America Partnerships

In reality, China has been steadily boosting ties with Latin American economies through forums like China-CELAC. The 4th ministerial meeting this May in Beijing saw regional leaders recognize China as a “good friend and partner,” focused on joint growth and resisting bullying.
 
On May 14, Foreign Ministry spokesperson Lin Jian emphasized China-Latin America cooperation has overcome challenges and differences. China pledges to support Latin America on core interests and key issues, promote three global initiatives, uphold multilateral trade, defend international justice, and foster global peace.
 
This cooperation is entering a “golden decade” aimed at strengthening the Global South’s unity and building a shared future for humanity.

Mao Paishou

** 博客文章文責自負,不代表本公司立場 **

 A group of eight Western venture capitalists recently toured China's clean energy sector, and it's safe to say the trip was a reality check. After seeing the factories and talking with entrepreneurs, any lingering doubts they had about China's commanding lead simply evaporated.

From Skepticism to Shock

As reported by Bloomberg and cited in the Global Times, the VCs weren't completely in the dark; they knew the statistics. They'd heard that China supplies a staggering 80% of the world's solar panels, 60% of its wind turbines, 70% of its EVs, and 75% of its batteries—all while beating the West on price. But seeing that gap up close was something else entirely, forcing them to question whether European and American companies could even compete anymore.

American VC Ashwin Shashindranath put it bluntly, saying the trip revealed that many of his Western peers are trapped in an "information cocoon" about China. German VC Nick de la Forge was even more direct, admitting his perspective did a complete 180. Before the visit, he was skeptical that China could really be light-years ahead, but after seeing it for himself, he confessed that Western startups aiming to break into the battery or solar sectors are now off his investment list.

Screenshot of Bloomberg report.

The Secret to China's Success

So, what's the secret sauce behind China's dominance? The report points to a few key factors. One Shanghai-based clean energy executive explained to the investors that he can source every single component for his products locally, and these suppliers are incredibly flexible, willing to adjust their processes to meet his specific manufacturing demands.

The visit to CATL, a global behemoth in power battery manufacturing, left them grasping for words. The VCs could only describe what they saw with two superlatives: it was simply "the most automated, most advanced production lines" they had ever witnessed.

Bloomberg concluded that China's undeniable edge in the green energy transition is pushing many countries to seek closer ties. In short, China has become the world's most powerful engine driving the global shift to a low-carbon future.

A Different Strategic Mindset

The story didn't end with the Bloomberg piece. Several of the investors took to social media to share their personal takeaways from the trip, and their insights were just as revealing.

German investor Sebastian Heitmann reflected that the trip taught him a crucial lesson: clean energy isn't just about environmentalism. It’s about national resilience, security, and a long-term strategic upper hand. He noted that China is pursuing green energy with such incredible speed and scale because its leaders fundamentally grasp this strategic reality.

Fellow German investor Yair Reem was also struck by the sheer scale and efficiency, but he pointed out something else that left a deep impression. He observed a fundamental difference in startup philosophy: while Western startups often chase radical, game-changing innovation from day one, Chinese entrepreneurs prefer a more pragmatic path. They focus on steady, incremental improvements, commercialize quickly to win market share, and then drive the major innovative leaps.

This led him to an inevitable conclusion. Instead of pouring resources into a futile attempt to "replicate" China's battery and solar panel industries at home, he argued, Europe and the US need a complete change of mindset: it's time to cooperate.