Chinese President Xi Jinping pledged to strengthen China-Latin America relations Tuesday as he addressed leaders at the China-CELAC (Community of Latin American and Caribbean States) Forum in Beijing.

During his speech, Xi condemned what he described as "bullying", a pointed remark interpreted as criticism of the United States, emphasizing the historical ties between China and the region, stating, "Although China lies far from the Latin American and Caribbean region, the two sides have a time-honoured history of friendly exchanges."

Describing the forum as a "great, sturdy tree," Xi said cooperation would lead to greater global peace and prosperity.

As part of its expanding engagement, China pledged $9.2 billion in credit toward development projects across Latin America and the Caribbean, while Xi warned against "bloc confrontation," reinforcing China's stance against division in global geopolitics.

Xi’s comments came a day after Washington and Beijing reached a temporary truce in their ongoing trade dispute, cautioning, "There are no winners in tariff wars or trade wars," adding, "Bullying and hegemony will only lead to self-isolation."

He noted the world is facing overlapping risks, saying, "The world today is undergoing accelerated transformations unseen in a century, with multiple risks intertwined and overlapping."

Strategic importance of Latin America in China-US trade dynamics

In recent years, Latin America has emerged as a focal point in the escalating rivalry between the US and China. Washington has increasingly pressured regional governments to side with it amid heightened economic tensions with Beijing.

In contrast, Beijing has urged a united front against US protectionism and has positioned itself as a strategic development partner for the region.

The US and China recently agreed to reduce tariffs for 90 days. Under the arrangement, Washington will lower tariffs on Chinese goods to 30%, while China will reduce its tariffs to 10%. The temporary easing marked a significant de-escalation of the trade war, which has disrupted global markets for months.

Among those present at the forum was Brazilian President Luiz Inacio Lula da Silva, who arrived in Beijing for a five-day state visit. Also attending was Colombian President Gustavo Petro, who announced plans to sign an accord joining the Belt and Road Initiative (BRI).

The BRI, Beijing’s trillion-dollar infrastructure programme, has seen widespread participation across Latin America. Currently, two-thirds of countries in the region have signed onto the initiative.

China has overtaken the US as the largest trading partner for Brazil, Peru, and Chile.