China and Latin America, united through logistics corridors

It is possible to visualize the world of the future based on history: three historical events, the most recent 40 years ago in China, 100 years ago in the Republic of Panama, and 200 years ago in Singapore. We use these examples precisely to analyze the potential of Latin America and Ecuador as Logistics and Transportation Hubs, based on 21st-century strategic alliances.

A world with multiple powers. This analysis considers the near future of humanity in various power scenarios, including the concept of a multipolar world with new powers in Asia, such as China and India, and the emergence of Brazil as a power in the Americas, sharing the stage with the United States. It also examines the strengthening of Russia and South Africa in their respective continents as key players in global development. Furthermore, the interaction of Arab countries with developing nations allows us to foresee fundamental changes in the balance of power that could activate Ecuador’s geopolitical position in the global trade arena.

President Xi Jinping has said, “We have no doubt that the more Latin America develops, the more it will benefit the world and China.” The direction is clear and is reflected in infrastructure investments in roads, railways, ports, and airports. This direction is accompanied by a vision of commercial development, but it is also important to recognize, based on a review of the processes for creating passenger and cargo transfer centers over the last two hundred years, that consolidating these initiatives, in addition to requiring significant investment in public works, also requires the decisive action of forging geopolitical alliances that lead to this objective.

The key to the trade of the future is the same as the trade of the past: control of trade routes. For this reason, it is important to review the events of the last two hundred years related to the creation of passenger and cargo exchange centers. If we examine geopolitical events of the last century, we can see that dominant powers have constantly sought centers for managing international trade in different parts of the world.

The Panama case reveals the United States’ interest in dominating world trade: Panama, separated from Colombia more than 100 years ago for this very purpose, remains the most important logistics hub in our region. The multimillion-dollar investment in the canal’s expansion and the construction of 1,300 new buildings clearly demonstrate this power’s interest. The importance of the Panama Canal in controlling international trade is undeniable, and it has been one of the largest investment projects in the history of international trade infrastructure.

The Singapore case illustrates the struggle among European world powers to control logistics routes to favor their trade. Two hundred years ago, the United Kingdom sought a strategic location for its trade center in Southeast Asia. In the region dominated by the Netherlands, it found an island of 700 km². This is highlighted by researchers at the Argentine Observatory of Conflicts: “In the 16th century, the Portuguese dominated the seas and monopolized trade with the East, but in the 17th century, they were replaced by the Dutch.” While in the 18th century, England was in a position to occupy the top spot in trade with China and the Far East. Initially, the colonialists embarked on the conquest of the seas without hesitation, although they adopted a cautious attitude toward the Chinese Empire, as it was a unified country with rich cultural traditions.

China is the ideal ally because it is the nation with the longest tradition in managing logistical routes, long before the examples of Singapore and Panama. There is no need to recount the millennia-old history of trade routes along China’s inland waterways, which are still vital, or the international routes that crossed deserts carrying the precious commodity of silk to the Middle East and Europe. Nor is there any need to mention China’s dominance of the seas and the great fleets of the Ming Dynasty and Admiral Zheng He.

In recent history, the most successful creator of these cities has been the People’s Republic of China and its ports. From Dandong and Dalian in Liaoning Province in the north, to Qingdao in Shandong, Tianjin (the natural port of Beijing), Shanghai with its seaport and the new deep-water port, Ningbo, Xiamen, Shantou, and Shenzhen are all extraordinary, as are Hong Kong and Macau. This experience is undoubtedly relevant to the projects being prepared throughout Latin America. These include a new canal in Nicaragua, as well as the activation of Pacific-Atlantic corridors in northern South America through Colombia, in the Andean region through Ecuador and Peru using the Amazon River as a waterway, and in the southern part of the region through Chile and Argentina.