{"id":60071680,"date":"2025-02-27T15:59:56","date_gmt":"2025-02-27T15:59:56","guid":{"rendered":"https:\/\/dialogue.earth\/?p=60071680"},"modified":"2025-03-26T17:08:14","modified_gmt":"2025-03-26T17:08:14","slug":"colombia-juggles-closer-china-ties-and-trump-tensions","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/business\/colombia-juggles-closer-china-ties-and-trump-tensions\/","title":{"rendered":"Colombia juggles closer China ties and Trump tensions"},"content":{"rendered":"\n

On 26 January, a diplomatic spat<\/a> erupted between Colombia and the United States, as the South American country\u2019s president, Gustavo Petro, refused landing to a flight carrying Colombian citizens deported from the US. Taking to social media, Petro said<\/a> that the US must \u201cestablish a protocol for the dignified treatment of migrants before we receive them\u201d, suggesting that those on board had been treated like criminals.<\/p>\n\n\n\n

Petro\u2019s statement led to a harsh response<\/a> from the US, which halted visa application processes in Colombia and threatened stiff tariffs on the country\u2019s exports. A day later, Petro relented, accepting the deportation flights in order to avoid 25% tariffs, signalling what could be growing tensions between the two countries during US president Donald Trump\u2019s second term. The US is Colombia\u2019s main trading partner<\/a>, making any trade threat from the US a potential headache for the country\u2019s economy.<\/p>\n\n\n\n

There was strong criticism of Petro\u2019s handling of the situation by some experts and members of the political opposition, some of whom have called his actions \u201cirresponsible<\/a>\u201d and \u201cputting Colombia\u2019s stability<\/a> in jeopardy\u201d, or describing his handling of the situation as \u201cmiscalculated<\/a>\u201d.<\/p>\n\n\n\n

Amid this volatility, questions have arisen over the direction of the two countries\u2019 relations, including whether Colombia must diversify its trade partners and reduce its dependence on the US \u2013 most notably, in regard to China, as a potentially closer ally in trade, investment, energy and other areas.<\/p>\n\n\n\n

Colombia and China relations<\/h2>\n\n\n\n

Although Colombia and China recently celebrated the 45th anniversary of diplomatic relations on 7 February, it was not until the 21st century that the latter rose to become one of Colombia\u2019s most important<\/a> trade partners, especially since the administration of Juan Manuel Santos (2010\u20132018). According to the Embassy of Colombia in China<\/a>, as of 2023, China is Colombia\u2019s second largest export partner, and its leading source of imports.<\/p>\n\n\n\n

\"Gustavo<\/div>
President Petro met with the China Civil Engineering Construction Corporation Consortium (CCECC) during his visit to Beijing in October 2023, where he proposed to revive the Colombian railway network and extend it to 5,400 kilometres by 2050 (Image: Mauricio Velez<\/a> \/ Presidency of Colombia<\/a>, PDM<\/a>)<\/div><\/div><\/div><\/div>\n\n\n\n

\u201cAlready, a decade ago, China was an important trading partner for many countries in the region, but since then, the relationship with Colombia has deepened,\u201d said David Castrill\u00f3n Kerrigan, a professor at the Externado University of Colombia, whose research focuses on Chinese and US foreign policies, and their impact on Latin America.<\/p>\n\n\n\n

In 2008, in the midst of the global economic crisis, Colombia exported just over USD 400 million in goods to China, according to the National Administrative Department of Statistics<\/a> (DANE). This increased to more than USD 2.3 billion in 2024, and between January to August that year, Colombian exports to China had grown<\/a> by 14.8% compared to the same period in 2023.<\/p>\n\n\n\n

For its part, Colombia imported more than USD 14.7 billion<\/a> worth of goods from China in 2024. A wide variety of Chinese goods enter the country, ranging from electronics and tyres to chemicals and textile products, according to data from the Observatory of Economic Complexity<\/a> (OEC).<\/p>\n\n\n\n

Still, Daniel G\u00f3mez, vice president of the Private Competitiveness Council, an organisation focused on strengthening Colombian business globally, believes that China is a market that has not been properly explored. \u201cWe have not been able to take advantage of the enormous demand coming from the Chinese market,\u201d he told Dialogue Earth. G\u00f3mez points out that while Colombia has expanded its global trade network with nearly 20 free trade agreements with key players, its projection into the Asian market \u201chas been more timid\u201d.<\/p>\n\n\n\n

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Recommended<\/span><\/span><\/div><\/a>\n\n\n\n

China has made inroads into Colombia not only with products, but also via investment in infrastructure projects. Zhu Jingyang<\/a>, China\u2019s ambassador to Colombia, noted that over 110 Chinese companies are currently operating in Colombia within the infrastructure sector, energy and mining, renewable energies, telecommunications, and health. The Colombian Embassy in China reports<\/a> that 62 Chinese projects have jointly invested over USD 800 million in areas including infrastructure and energy. Notable companies that have invested include the China Harbour Engineering Company, which is leading a consortium of companies to build the first line of the Bogot\u00e1 metro<\/a>; Zijin Continental Gold, which owns the troubled Buritic\u00e1 gold mine<\/a>; and Trina Solar, which built the Bosque de los Llanos solar farm.<\/p>\n\n\n\n

Some of these projects have brought with them challenges, particularly when it comes to those with complex environmental and social contexts, explains Julie Radomski, a Global China research fellow at Boston University\u2019s Global Development Policy Center. \u201cOver time, some projects ended up being problematic, in terms of their ramifications,\u201d Radomski told Dialogue Earth. This has been the case in Bogot\u00e1, where construction of the metro is said to have impacted the environment and daily life<\/a> for the city\u2019s inhabitants<\/a>, and payments for which have been the cause of a dispute between the mayor\u2019s office and the presidency<\/a>; and in Buritic\u00e1, where there have been attacks by armed groups.<\/p>\n\n\n\n

The geopolitics of the Belt and Road<\/h2>\n\n\n\n

In recent months, signals from senior Colombian officials have suggested that Colombia will soon be the latest nation to join the Belt and Road Initiative<\/a> (BRI) \u2013 the umbrella under which China has expanded its global presence in investment and infrastructure projects.<\/p>\n\n\n\n

In October 2024, Colombia\u2019s then vice-minister of foreign affairs, Jorge Rojas Rodr\u00edguez, said<\/a> that his country will join the BRI after further negotiations and discussion of both countries\u2019 needs and priorities. Though no formal details have emerged since, speculation suggested that President Petro would make an announcement<\/a> this month, but was forced to cancel amid a cabinet crisis.<\/p>\n\n\n\n

Since 2013, nearly 150 countries have signed up to the BRI, with total funding committed through it passing USD 1 trillion<\/a> as of 2023. To date, 21 Latin American and Caribbean countries, including Peru, Chile and Argentina, have joined<\/a> the Chinese initiative, which has often heralded the arrival of grand Chinese-backed projects in infrastructure and the energy sector, though the focus has begun to shift towards smaller investments<\/a> in recent years.<\/p>\n\n\n\n

\"machinery<\/div>
Construction of the Chancay port in Peru \u2013 a Belt and Road member since 2019 \u2013 backed by Chinese state-owned company COSCO Shipping. Colombia has been negotiating the conditions to join the Chinese infrastructure development initiative (Image: Flor Ruiz \/ Dialogue Earth)<\/div><\/div><\/div><\/div>\n\n\n\n

As the BRI has grown, bringing changing investment patterns and deepening countries\u2019 trade relations with China, it has in many ways redefined geopolitics in the Global South.<\/p>\n\n\n\n

Radomski described the BRI as \u201can umbrella term\u201d that has grown beyond its original focus on connectivity, and is \u201ca shifting term that encompasses the expansion of infrastructure and the expansion of China as a power.\u201d<\/p>\n\n\n\n

At a time of tension with the US, Colombia signing a memorandum of understanding with China on the BRI may not only represent a new alliance on trade and investment, but would also be a diplomatic move with strong implications. Radomski notes that while joining the BRI is mainly symbolic, \u201cthe geostrategic implications of joining the initiative are significant\u201d.<\/p>\n\n\n\n

This is not lost on the US. According to Margaret Myers<\/a>, managing director of the Institute for America, China, and the Future of Global Affairs, part of the reason each Colombian government has moved tentatively towards a stronger relationship with Beijing is due to the country\u2019s long-established close relationship with the US.<\/p>\n\n\n\n

If Colombia enters the BRI right at the start of the Trump administration, it\u2019s not going to be well received in the US<\/blockquote>David Castrill\u00f3n Kerrigan, professor at the Externado University of Colombia.<\/cite><\/div><\/div>\n\n\n\n

Moreover, in the US, the new administration has been vocal in its animosity towards China on trade matters. This manifested itself in the form of the tariffs promised by Trump in his presidential campaign, which have become reality for some countries and which may expand in the following months in industries such as automobiles, electronics, and pharmaceuticals<\/a>.<\/p>\n\n\n\n

\u201cThis is an administration [in the US] that sees China as a threat,\u201d Castrill\u00f3n Kerrigan said. \u201cIf Colombia enters the [BRI] right at the start of the administration, it\u2019s not going to be well received.\u201d<\/p>\n\n\n\n

He also pointed out that the interdependence between Colombia and the US cannot be ignored \u2013 not only on trade issues but also in areas such as the management of migration: \u201cTrump will surely punish Colombia.\u201d<\/p>\n\n\n\n

Independent of the Colombia-China relationship, it is possible that Trump\u2019s agenda will lead to more tensions in other matters, such as aid and development. For example, in late January, the US president ordered<\/a> a 90-day suspension of all aid programmes to foreign nations. In 2023 alone, Colombia received<\/a> more than USD 738 million in assistance from the US government for food, military and even migration-related programmes.<\/p>\n\n\n\n

What Colombia stands to gain<\/h2>\n\n\n\n

The Private Competitiveness Council\u2019s G\u00f3mez believes that Colombia\u2019s entry into the BRI is an opportunity to strengthen ties with a market that is full of potential. \u201cChina is a market that is growing and will have significant demands for food, animal protein, or energy,\u201d he says.<\/p>\n\n\n\n

Castrill\u00f3n Kerrigan agrees, noting that in recent years China has had a strong policy<\/a> of increasing imports from the Global South to reduce its dependence on the United States and Europe. The agreements<\/a> signed between Petro and Chinese President Xi Jinping during their 2023 meeting in Beijing described agriculture, renewable energy, manufacturing and science  among the some industries and sectors in which both countries seek to strengthen their ties.<\/p>\n\n\n\n

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Recommended<\/span><\/span><\/div><\/a>\n\n\n\n

The Petro administration\u2019s focus<\/a> on the energy transition and commitment to expanding renewable energy will be key to the dynamics between the two countries. Colombia\u2019s environmental agenda synchronises with a China that is increasingly focusing on<\/a> renewable energy in foreign infrastructure projects. 

Today, China is the leading producer and exporter<\/a> of solar panels. Castrill\u00f3n Kerrigan and Radomski believe that there is currently no country with better infrastructure to assist in Colombia\u2019s energy transition. \u201cIn terms of renewable [energy], it\u2019s hard to think of other countries that are in the same league as Chinese companies,\u201d Radomski said.<\/p>\n\n\n\n

In 2023, nearly 43% of Colombia\u2019s exports to China were of crude oil, in addition to charcoal briquettes at over 18%, according to OEC figures. Having China as a partner in the development of renewable energy sources, as well as having its support in the midst of the current administration\u2019s plan for a just energy transition, could be crucial in supporting Colombia\u2019s pivot towards other export products for the Chinese market.<\/p>\n\n\n\n

Experts say another area in which Colombia could benefit is the modernisation of its agricultural sector. This has been a goal of President Petro<\/a>, and an area in which China has a great amount of technical knowledge and infrastructure. \u201cColombia has seen China\u2019s experience in eliminating extreme poverty in its country and improving conditions in the countryside through technification, and wants to replicate that,\u201d says Castrill\u00f3n Kerrigan.<\/p>\n\n\n\n

Other areas of potential cooperations include the potential relocation of Chinese manufacturing operations to Colombia \u2013 which G\u00f3mez suggests is a possibility within BRI negotiations \u2013 and the transport infrastructure projects<\/a> which the Colombian government pitched to Chinese firms in the midst of Petro\u2019s visit to Beijing.<\/p>\n","protected":false},"excerpt":{"rendered":"

Country looks set to join China\u2019s Belt and Road Initiative, a possible boost for trade, investment and energy \u2013 but likely a source of frictions with its traditional US ally<\/p>\n","protected":false},"author":50000632,"featured_media":60071717,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[758],"tags":[510,50042156,600],"hashtags":[],"country":[50000025],"class_list":["post-60071680","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-china-in-the-world","tag-overseas-investment","tag-trade","country-colombia"],"acf":[],"yoast_head":"\nColombia juggles closer China ties and Trump tensions | Dialogue Earth<\/title>\n<meta name=\"description\" content=\"Country looks set to join China\u2019s Belt and Road Initiative, a possible boost for trade, investment and energy \u2013 but likely a source of frictions with its 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