Colombia Joins Belt and Road Initiative as China Courts Latin America 

Chinese President Xi Jinping meets with Colombian President Gustavo Petro at the Great Hall of the People in Beijing, China, 14 May 2025. (EPA /Xinhua / Huang Jingwen)
Chinese President Xi Jinping meets with Colombian President Gustavo Petro at the Great Hall of the People in Beijing, China, 14 May 2025. (EPA /Xinhua / Huang Jingwen)
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Colombia Joins Belt and Road Initiative as China Courts Latin America 

Chinese President Xi Jinping meets with Colombian President Gustavo Petro at the Great Hall of the People in Beijing, China, 14 May 2025. (EPA /Xinhua / Huang Jingwen)
Chinese President Xi Jinping meets with Colombian President Gustavo Petro at the Great Hall of the People in Beijing, China, 14 May 2025. (EPA /Xinhua / Huang Jingwen)

Colombia formally agreed on Wednesday to join China's vast Belt and Road infrastructure initiative, as Beijing draws Latin America closer in a bid to counter the United States.

Latin America has emerged as a key battleground in US President Donald Trump's confrontations with China, and the region is coming under pressure from Washington to choose a side.

China has surpassed the United States as the biggest trading partner of Brazil, Peru, Chile and other Latin American nations, and two-thirds of countries there have signed up to Chinese leader Xi Jinping's Belt and Road infrastructure drive.

On the sidelines of a major gathering of regional leaders in Beijing on Wednesday, Colombia became the latest country to join the massive global initiative.

Colombia's foreign ministry hailed the agreement as a "historic step that opens up new opportunities for investment, technological cooperation, and sustainable development for both countries".

And after a meeting with Colombian President Gustavo Petro, Xi urged the countries to take the opportunity of Colombia formally joining the "Belt and Road Initiative family" to enhance their cooperation, Beijing's state media said.

Posting a video of the signing to social media platform X, Petro wrote that "the history of our foreign relations is changing".

"From now on, Colombia will interact with the entire world on a footing of equality and freedom," he wrote.

The BRI is a central pillar of Xi's bid to expand China's economic and political clout overseas.

For more than a decade, it has provided investment for infrastructure and other large-scale projects around the world, offering Beijing political and economic leverage in return.

Last year, Xi inaugurated Latin America's first Beijing-funded port in Chancay, Peru -- a symbol of the Asian superpower's growing influence on the continent.

- 'Defenders of free trade' -

This week's China-CELAC Forum in Beijing has seen China cast itself as the defender of the multilateral order and the backer of the Global South, with Xi pledging on Monday $9.2 billion in credit towards development.

That pledge was part of a broad set of initiatives aimed at deepening cooperation, including on infrastructure and clean energy.

Beijing will also cooperate in counterterrorism and fighting transnational organized crime, Xi said, as well as enhancing exchanges such as scholarships and training programs.

During a meeting with Chilean President Gabriel Boric on Wednesday, Xi said that the "resurgence of unilateralism and protectionism is severely impacting the international economic and trade order," according to Chinese state news agency Xinhua.

"As staunch defenders of multilateralism and free trade, China and Chile should strengthen multilateral coordination and jointly safeguard the common interests of the Global South," Xi told Boric.

Also in attendance at the China-CELAC forum was Brazilian President Luiz Inacio Lula da Silva, who arrived in Beijing on Saturday for a five-day state visit.

Addressing delegates, Lula said his region did not "want to repeat history and start a new Cold War", adding: "Our goal is to be an asset to the multilateral order for a global good".

In talks with Lula on Tuesday, Xi said the two countries should "strengthen cooperation" and together "oppose unilateralism", according to Chinese state media.

The United States and China have faced off in Latin America, including over the Panama Canal, which Trump has for months vowed to reclaim from alleged Chinese influence.

Washington considered a Hong Kong company's operation of ports at both ends of the interoceanic waterway to be a threat to its national security, but Beijing has dismissed the claims.

And China's market regulator is looking into a deal by Hong Kong conglomerate CK Hutchison to offload 43 ports in 23 countries -- including its two on the Panama Canal -- to a US-led consortium.

The world's two largest economies are two of the top users of the canal, through which five percent of all global shipping passes.



Oil Rises as Investors Weigh Outcome of Trump–Zelenskiy Meeting

Vehicles drive past the El Palito refinery in Puerto Cabello, Venezuela, Sunday, Dec. 21, 2025. (AP)
Vehicles drive past the El Palito refinery in Puerto Cabello, Venezuela, Sunday, Dec. 21, 2025. (AP)
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Oil Rises as Investors Weigh Outcome of Trump–Zelenskiy Meeting

Vehicles drive past the El Palito refinery in Puerto Cabello, Venezuela, Sunday, Dec. 21, 2025. (AP)
Vehicles drive past the El Palito refinery in Puerto Cabello, Venezuela, Sunday, Dec. 21, 2025. (AP)

Oil prices rose on Monday as investors weighed the outcome of talks between the US and Ukrainian presidents on a potential ​deal to end the war in Ukraine, as well as Middle East tensions that could disrupt supply.

Brent crude futures rose 67 cents, or 1.1%, to $61.31 per barrel at 0751 GMT, while US West Texas Intermediate crude was up 65 cents, or 1.15%, to $57.39.

Both benchmark prices fell more than 2% on Friday as investors weighed a looming global supply glut and ‌the possibility of a ‌Ukraine peace deal ahead of weekend ‌talks between ⁠Ukrainian ​President ‌Volodymyr Zelenskiy and US President Donald Trump.

Trump said on Sunday that he and Zelenskiy were "getting a lot closer, maybe very close" to an agreement to end the war in Ukraine, while acknowledging that the fate of the disputed Donbas region remains a key unresolved issue.

The two leaders spoke at a ⁠joint press conference late Sunday afternoon after meeting at Trump's Mar-a-Lago resort in Florida. ‌Trump said it will be clear "in ‍a few weeks" whether negotiations to ‍end the war will succeed.

The peace talks did not ‍reach an agreement on territorial issues, so a Russia–Ukraine peace deal may remain deadlocked with no quick breakthrough, said Mingyu Gao, energy and chemical chief researcher at China Futures.

The reason prices are rising also includes ​that geopolitical tensions remain elevated, as Russia and Ukraine continued striking each other's energy infrastructure over the weekend, said Yang ⁠An, a China-based analyst at Haitong Futures.

"The Middle East has also been unsettled recently, in Yemen and Iran saying the country is in a 'full-scale war' with the US, Europe, and Israel. This may be what's driving market concerns about potential supply disruptions," Yang added.

WTI is expected to trade within a $55-$60 range with an eye also on US enforcement actions against Venezuelan oil shipments and any fallout from the US military strike against ISIS targets in Nigeria, which produces about 1.5 million barrels ‌per day, IG analyst Tony Sycamore said in a note.


China's Finance Ministry: Fiscal Policies Will be More 'Proactive' in 2026

A man walks on a street in Beijing, China, 24 December 2025. EPA/WU HAO
A man walks on a street in Beijing, China, 24 December 2025. EPA/WU HAO
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China's Finance Ministry: Fiscal Policies Will be More 'Proactive' in 2026

A man walks on a street in Beijing, China, 24 December 2025. EPA/WU HAO
A man walks on a street in Beijing, China, 24 December 2025. EPA/WU HAO

China's finance ministry on Sunday said fiscal policies will be more proactive next year, reiterating its focus on domestic demand, technological innovation and a social safety net.

The statement comes as trading partners urge the world's second-biggest economy to reduce its reliance on exports, underscoring the urgency to revive confidence at home where a prolonged property crisis has rippled ⁠through the economy, weighing on sentiment.

China will boost consumption and actively expand investment in new productive forces and people's overall development, the ministry said in a statement after a two-day meeting at which it set ⁠2026 goals.

In addition, Reuters quoted the ministry as saying that it will support innovation to foster new growth engines, and improve the social security system by providing better healthcare and education services.

Other tasks for next year include promoting integration between urban and rural areas, and propelling China's transformation into a greener society.

China is likely to stick to ⁠its annual economic growth target of around 5% in 2026, government advisers and analysts told Reuters, a goal that would require authorities to keep fiscal and monetary spigots open as they seek to snap a deflationary spell.

Leaders this month promised to maintain a "proactive" fiscal policy next year that would stimulate both consumption and investment to maintain high economic growth.


Bulgaria Adopts Euro Amid Fear and Uncertainty

Customers shop in a grocery store in the village of Chuprene, northwestern Bulgaria on December 7, 2025. (Photo by Nikolay DOYCHINOV / AFP)
Customers shop in a grocery store in the village of Chuprene, northwestern Bulgaria on December 7, 2025. (Photo by Nikolay DOYCHINOV / AFP)
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Bulgaria Adopts Euro Amid Fear and Uncertainty

Customers shop in a grocery store in the village of Chuprene, northwestern Bulgaria on December 7, 2025. (Photo by Nikolay DOYCHINOV / AFP)
Customers shop in a grocery store in the village of Chuprene, northwestern Bulgaria on December 7, 2025. (Photo by Nikolay DOYCHINOV / AFP)

Bulgaria will become the 21st country to adopt the euro on Thursday, but some believe the move could bring higher prices and add to instability in the European Union's poorest country.

A protest campaign emerged this year to "keep the Bulgarian lev", playing on public fears of price rises and a generally negative view of the euro among much of the population.

But successive governments have pushed to join the eurozone and supporters insist it will boost the economy, reinforce ties to the West and protect against Russia's influence.

The single currency first rolled out in 12 countries on January 1, 2002, and has since regularly extended its influence, with Croatia the last country to join in 2023.

But Bulgaria faces unique challenges, including anti-corruption protests that recently swept a conservative-led government from office, leaving the country on the verge of its eighth election in five years.

Boryana Dimitrova of the Alpha Research polling institute, which has tracked public opinion on the euro for a year, told AFP any problems with euro adoption would be seized on by anti-EU politicians.

Any issues will become "part of the political campaign, which creates a basis for rhetoric directed against the EU", she said.

While far-right and pro-Russia parties have been behind several anti-euro protests, many people, especially in poor rural areas, worry about the new currency.

"Prices will go up. That's what friends of mine who live in Western Europe told me," Bilyana Nikolova, 53, who runs a grocery store in the village of Chuprene in northwestern Bulgaria, told AFP.

The latest survey by the EU's polling agency Eurobarometer suggested 49 percent of Bulgarians were against the single currency.

After hyperinflation in the 1990s, Bulgaria pegged its currency to the German mark and then to the euro, making the country dependent on the European Central Bank (ECB).

"It will now finally be able to take part in decision making within this monetary union," Georgi Angelov, senior economist at the Open Society Institute in Sofia, told AFP.

An EU member since 2007, Bulgaria joined the so-called "waiting room" to the single currency in 2020, at the same time as Croatia.

The gains of joining the euro are "substantial", ECB president Christine Lagarde said last month in Sofia, citing "smoother trade, lower financing costs and more stable prices".

Small and medium-sized enterprises stand to save an equivalent of some 500 million euros ($580 million) in exchange fees, she added.

One sector expected to benefit in the Black Sea nation is tourism, which this year generated around eight percent of the country's GDP.

Lagarde predicted the impact on consumer prices would be "modest and short-lived", saying in earlier euro changeovers, the impact was between 0.2 and 0.4 percentage points.

But consumers -- already struggling with inflation -- fear they will not be able to make ends meet, according to Dimitrova.

Food prices in November were up five percent year-on-year, according to the National Statistical Institute, more than double the eurozone average.

Parliament this year adopted empowered oversight bodies to investigate sharp price hikes and curb "unjustified" surges linked to the euro changeover.

But analysts fear wider political uncertainty risks delaying much needed anti-corruption reforms, which could have a knock-on effect on the wider economy.

"The challenge will be to have a stable government for at least one to two years, so we can fully reap the benefits of joining the euro area," Angelov said.