China has now completed free trade negotiations with Chile and Peru, while similar negotiations with Costa Rica are under way. "In the last five or six years, trade between China and Latin America has been under extremely rapid development," Xu told Beijing Review. In 2000, trade volume between China and Latin America exceeded $10 billion for the first time. In 2004, Chinese officials set a trade volume goal of $100 billion by 2010. This goal was reached in 2007 with $102.6 billion. Trade volume could exceed $120 billion by the end of the year, Xu predicted, adding that Chinese imports from Latin America would continue to grow, thanks to China's economic growth and massive infrastructure plans.

Xu explained the reasons leading to the rapid growth in trade. Because of the complementary trade structure, many Latin American countries have a trade surplus with China. Costa Rica mainly exports electronic components to China; Peru sells fishery products and mineral resources, while it imports textiles, light industrial products and electronic appliances from China. Both countries have had a trade surplus for years. In recent years, Chinese investment in Latin America has also grown quickly, especially investment in engineering projects, industrial products processing and natural resource exploitation. By the end of June 2008, China had invested $24.96 billion in Latin America.

With China as an important trading partner, Latin American countries have suffered less damage from the global financial crisis, Chinese observers believe. "China now is a relatively safe harbor for them," Xu said. Latin America will benefit even more as free trade agreements abolish tariffs. "Therefore, developing trade and economic ties with China is very attractive to the region."