It was not a time without tension, but the whole world profited from globalization. Partly Latin America as well, due to the great demand from China and its inexhaustible financial capital. However, the imposition of US tariffs, pandemic mistrust, the impact on global supply chains and the Russian invasion of Ukraine ultimately changed the world.

It is precisely because of this situation that the recent EU-Celac summit is relevant. It is true that the complexity of the relationship between the two blocs is evident. In the last 8 years, summits have been suspended due to disagreements over Venezuela. And the EU-Mercosur trade agreement, agreed in 2019 after 20 years of negotiations, ran aground again. Latin American resistance to new environmental requirements and the European protectionist drive.

The Latin American rejection of European rhetoric on Ukraine in the final declaration and President Zelenski’s veto show significant differences. With Venezuela, Cuba and Nicaragua, but also with those who maintain calculated ambiguity or tacitly support Putin accusing the West of war, Lula da Silva at the helm. This is linked to historical accusations of moralism and neglect of Europeans.

The current economic and geopolitical challenge advises understanding. Brussels sees an imperative to diversify its supply of energy and strategic resources, such as lithium. Latin America must take advantage of this. The development crisis plaguing it, with growth below 1% in the last decade, should be enough of an incentive. In addition, a strategic alliance with the EU would allow it to consolidate a healthier alternative to China. Both options are not exclusive and would serve to protect against the inherent risks of this Asian country: an increasingly gloomy domestic economy or emerging dependencies.

The onus falls on governments that see their relationship with Beijing as a short-term transaction.

The EU is struggling to compete with China’s state capitalism. Its state-owned companies, which receive hidden subsidies, cheap and endless financing and favorable treatment in their market, are on a mission to guarantee their future supply of goods.

In addition to investments and imports, the EU offers an alternative development model in its Global Gateway initiative. Environmental sustainability and economic independence linked to infrastructure and economic alliances seek to “contribute to the development of partner countries,” the EU says.

Paradoxically, in some Latin American areas, European requirements and standards are uncomfortable, but not those of Beijing, with its poor practices and lack of transparency and oversight. This relationship consolidates the pattern of primary exports in the region: exports resources and imports finished products, without industrialization.

The onus falls on governments that see their relationship with Beijing as a short-term transaction. Quick tax revenues through exports with no incentive to promote permanent projects that generate development, because the political revenue will be taken by others. A change of mentality is urgently needed. The EU-Celac summit is the starting point. (OR)

Juan Pablo Cardenal is a journalist specializing in the internationalization of China and editor of Análisis Sinico u cadal.org