Latest update January 15th, 2026 12:10 AM
China releases new policy paper for Latin America, Caribbean
…targets deeper collaboration in energy sector
…suggests local-currency transactions to curb external shocks
(Kaieteur News) – China has outlined plans to deepen cooperation with Latin America and the Caribbean (LAC) in energy, finance and infrastructure under a newly released policy paper—the third such document issued by Beijing in less than two decades.
The LAC policy paper was issued on Wednesday, December 10. According to the Chinese Embassy in Guyana, China released its first policy paper on the region in November 2008, followed by a second in November 2016.
“The latest policy paper said China stands ready to join hands with Latin America and the Caribbean to promote the five programs on solidarity, development, civilization, peace and people-to-people connectivity to advance shared development and revitalization, and write a new chapter in building a China-LAC community with a #sharedfuture,” the embassy said.
Energy and resources cooperation features prominently in the policy paper, with China signalling interest in both traditional and clean energy sectors across the full industrial chain.
“Based on the principles of win-win cooperation and sustainable development, China stands ready to expand and deepen China-LAC cooperation on energy development and utilization across the whole industrial chain, increase cooperation in oil, gas and other traditional energy sectors, strengthen cooperation on clean energy such as hydropower, solar power, wind power and hydrogen energy, deepen cooperation on peaceful uses of nuclear energy, and enhance green development and utilization of mineral resources at various stages,” the paper states.
Notably, the policy also signals China’s willingness to work with the region to explore mechanisms for long-term supply, as well as local-currency pricing and settlement of energy and resource products, aimed at reducing the impact of external economic and financial risks.
In Guyana, China National Offshore Oil Company (CNOOC), through its subsidiary CNOOC Petroleum Guyana Limited is a 25% partner in the Stabroek Block, alongside ExxonMobil and Hess. Currently, there are four developments producing oil from the Stabroek Block: Liza Phase 1, Liza Phase 2, Payara and Yellowtail. The fourth project, Yellowtail achieved first oil in August and daily oil production has finally reached 900,000 barrels with the Yellowtail Floating Production Storage and Offloading (FPSO) vessel reaching its initial capacity of 250,000 barrels per day (bpd).
Moreover, on the financial front, the paper outlines plans to support Chinese financial institutions in strengthening exchanges and cooperation with national, regional and international financial institutions in LAC countries, while also optimizing the construction of branch networks across the region. It notes that efforts will be made to enhance dialogue and cooperation between central banks and financial regulatory authorities, expand cross-border local-currency settlement, discuss RMB clearing arrangements, and steadily promote monetary cooperation, including local-currency swaps.
“Building on existing bilateral financial cooperation, China will give full play to the role of China-Latin America Cooperation Fund, concessional loans, China-LAC Special Loan for Infrastructure, China-Latin American Production Capacity Cooperation Investment Fund and financing arrangements between China and the Caribbean countries, actively explore cooperation forms including insurance and financial leasing, further expand cooperation with regional financial institutions in LAC countries, and support cooperation in key areas and major projects between the two sides,” the policy states.
Infrastructure cooperation is identified as another key pillar, spanning traditional sectors such as transportation, energy and water projects, as well as emerging areas including renewable energy, digital infrastructure and smart cities. According to the paper, “China encourages and supports competent domestic enterprises and financial institutions in actively participating in the planning and construction of infrastructure in Latin American and Caribbean countries, so as to enhance regional infrastructure connectivity and consistently empower regional economic growth and sustainable development.”
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