China expects that the bilateral trade will grow if it invests in Latin American infrastructure. This strategy has also been used to bolster China’s economic relations with countries in Europe, Asia, and Africa. The investments promised by Li Keqiang during his trip to South America are largely in line with this strategy. The flagship project is a $10 billion railroad between Brazil and Peru that will connect the Atlantic and Pacific ports.

In Colombia, China promised to modernize the port of Buenaventura, the country’s second most important harbour, and pledged to build a 600 km highway linking central Colombia with the Venezuela border. China and Colombia also pledged to formalise a bilateral free trade agreement.

During his visit to Chile, Li Keqiang signed a series of financial agreements that will also be important for China’s strategy of binding Latin American commerce with its own economy. It helped establish a yuan clearing bank in Chile, which would be the first in South America. Both initiatives seek to reduce the use of the U.S. dollar in bilateral trade, restricting U.S. influence over their commercial dynamic..

Though China has been facing the economic crisis for some time, the leadership never allowed to come out in the open. In fact Li’s visit is testimony to it. Its military parade on the 70th anniversary of Japanese surrender in World War II held on September 3 in Beijing, also tried to send a strong message about its economic stability. There are both internal and external benefits of the military parade, despite some international concerns.

The event was a big success because it achieved precisely what the Chinese government wanted. The international observers and some countries might have certain reservation but the fact remains that the military parade showed the present economic crisis has not weakened Xi Jinping and he still today continues to be the undisputed leader in China. He firmly controls China’s powerful military, despite some recent speculations that his position has been weakened by a struggling stock market and slowing economy. This will help Li push some serious organizational and economic reforms. He intends to make the PLA a truly modern military that is capable of defending China’s national interests.

Another important achievement has been the parade erased any misgiving from the minds of the people about the future of the Li government. The parade is also being interpreted as the evidence of an assertive Chinese nationalism. After this rally people have started feeling that China is no longer a weak country like it was 100 years ago. China can proudly claim to be one of the major powers in the world. The days of “national humiliation” are long gone.

China’s display of advanced missiles, a series of DF missiles, is a clear and strong signal that it now possesses a full range of advanced systems to destroy a potential enemy’s valuable targets. In the near future, China’s military could very well become the only true competitor to the U.S. military, thus making competition and arms race between the two great powers even more fierce. What of courses was the significant was Xi chose the occasion to make the surprising announcement that China would cut its troops by 300,000. Through this he wanted to assure the global fraternity that China’s military advancements do not pose a threat to other countries in Asia and even the United States. Chinese leadership sees the country’s rise as one that can only be achieved through peaceful means. This is in fact most reassuring for its Asian neighbours. (IPA Service)