Opinion: Jeddah talks’ useful lessons for Latin America – China relations

(Opinion) A conundrum facing Latin America is how to forge mutually beneficial relations with China without alienating countries that are concerned about China’s rise.

China’s participation in the weekend talks in Jeddah to help resolve the conflict in Ukraine provides useful lessons.

In June, China declined an invitation to attend similar talks in Copenhagen.

This suggests that China’s presence in Jeddah is largely attributed to the country’s amicable relations with the host, Saudi Arabia, whose recent diplomatic deal with Iran was brokered by China.

Yet, Saudi Arabia needs something more to leverage the participation of China and dozens of other countries in the Jeddah talks to demonstrate Riyadh’s ability to play a bigger role in the international arena.

Among the participating countries were Brazil, India, and South Africa (i.e., remaining members of BRICS, excluding Russia) as well as Egypt, Indonesia, Mexico, and Zambia (i.e., important representatives of the Global South).

Other participants included the European Union and the United States, both of which have more differences with China and Saudi Arabia on a wide range of issues.

To win endorsements from these countries with conflicting interests, Riyadh needs established principles under international law, which is imperfect but helps provide a basis to minimize disagreement.

Similarly, Latin America can use international law to minimize disagreement and thus solve its China conundrum.

A good example to illustrate this point is the Digital Economy Partnership Agreement (DEPA).

The DEPA is the world’s first multilateral digital trade agreement, with Chile, Singapore, and New Zealand being the founding members.

South Korea just joined the DEPA in June while China and Canada are actively seeking to become members.

Many other countries such as Costa Rica and Peru are showing strong interest in the agreement.

The prospect for China to become a member of the DEPA must not be underestimated.

To respond strategically, Latin American countries need to understand the implications when China gains its membership.

A key implication is that member countries, including Chile and future Latin American countries that join the DEPA, will then be able to require China’s compliance with DEPA provisions while pursuing mutually beneficial relations with China within the framework of the agreement.

Contrary to conventional wisdom, China does show compliance with international standards related to trade and business.

For example, China amended its Copyright Law in 2010 in accordance with a WTO decision.

A few recent Chinese judgments reflect the country’s adherence to international commercial rules.

Using the DEPA proactively will help bring China’s Personal Information Protection Law and other laws related to data security in line with international standards embedded in the DEPA.

Latin American countries considering whether they should join the DEPA must understand that a DEPA membership is not just about gaining a license to participate in digital trade with member countries spanning across different regions.

Having a DEPA membership when the agreement is still at its early stage is about winning a leadership position to help establish international legal principles related to digital trade.

The opportunity to assume the mantle of leadership in shaping the future of digital economy in this increasingly digitized world is priceless.