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Premier Li urges production capacity co-op between China, LatAm

(Xinhua) Updated: 2015-05-26 20:01

Premier Li urges production capacity co-op between China, LatAm

Chinese Premier Li Keqiang addresses the Santiago-based Economic Commission for Latin America and the Caribbean (ECLAC) in Santiago, Chile, May 25, 2015. [Photo provided to chinadaily.com.cn.]

SANTIAGO - Chinese Premier Li Keqiang on Monday called on China and Latin America to enhance cooperation on production capacity and people-to-people exchanges.

The move came as the visiting premier addressed the Santiago-based Economic Commission for Latin America and the Caribbean (ECLAC) after he briefly met with Alicia Barcena, executive secretary of the UN body.

In his speech, Li made a four-point proposal which he described as "the four pillars" of the China-Latin America cooperation.

They include reinforcing traditional friendship and mutual trust, mutual benefit and win-win cooperation, mutual learning between civilizations as well as China's overall cooperation with regional organizations in the area.

PRODUCTION CAPACITY COOPERATION

Against the backdrop of the slow recovery of the global economy, countries should make use of their complementary advantages and strive to develop real economy, Li said, encouraging countries to expand infrastructure construction to lever the development of the equipment manufacturing and related service sector, in order to boost economic growth.

International production capacity cooperation, which involves bringing in facilities, production lines, technology and management experience from other countries according to one nation's own needs, will effectively reduce infrastructure construction cost, create jobs for the local communities, and promote the diversified development of domestic industries, he said.

"It is the right time for the Sino-Latin American production capacity cooperation, as China has cost-effective equipment and technology while Latin America needs infrastructure construction and industrial upgrading", Li said.

The cooperation, which is also open to the United States and Europe that enjoy developed technologies, is expected to achieve win-win results and mutual development, Li said, pointing out that production capacity cooperation is a new approach for deepening the North-South cooperation.

He pledged that China stands ready to invest in this area's production lines to roll out more building materials needed by the local iron and steel, power and infrastructure sectors.

Li also touched on China's economic growth in his speech, saying that the world's second largest economy is capable of keeping its economic growth within a proper range, though the country is facing considerable downward pressure.

During his trip to Brazil last week, Li announced that Beijing will establish a 30-billion-U.S.-dollar special fund for promoting China-Latin America cooperation in production capacity and equipment manufacturing. The premier said the fund will be channeled directly to cooperation projects with no political strings attached.

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