China-Colombia Economic Ties: A Growing Partnership in Latin America

• Celebrating 45 years of diplomatic relations, China and Colombia have forged a dynamic economic partnership built on robust trade, strategic investments, and growing tourism links.
• In 2024, bilateral trade reached US$21.0 billion, positioning China as Colombia’s second-largest trading partner while key agreements and investments continue to strengthen ties in sectors like energy, infrastructure, and agriculture.
• Looking ahead, both nations are poised to capitalize on opportunities in energy transition, advanced rail and urban infrastructure, green development, and agricultural innovation to drive mutual economic growth.

China and the Republic of Colombia established diplomatic relations on February 7, 1980 —a milestone that, in 2025, marks 45 years of growing ties. Over these decades, the economic relationship between the two nations has experienced exponential growth. China has emerged as Colombia’s second-largest trading partner, while Colombia is now China’s fifth-largest partner in Latin America.

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In October 2023, during a state visit by President Petro to China, he and President Xi Jinping elevated bilateral relations to a strategic partnership, further cementing a robust framework for trade and investment. By 2024, bilateral trade in goods reached approximately US$21.0 billion, an increase of more than 1,900 times compared to the early years of cooperation.

Today, Colombia exports around 464 diverse products to China—including 30 agricultural items—and serves as China’s second-largest source of coffee imports. Meanwhile, China remains a major market for Colombian beef. Moreover, from 2000 to 2023, China’s cumulative investment in Colombia exceeded US$800 million.

Under the current geopolitical situation, these dynamic economic engagements are paving the way for even greater opportunities for both nations.

China-Colombia trade

Since 2007, when China first emerged as Colombia’s second-largest import source, bilateral trade between the two nations has grown remarkably. In 2008, the signing of the Investment Promotion and Protection Agreement further bolstered economic ties, and by 2019, China had firmly established itself as Colombia’s second-largest trading partner.

According to Chinese Customs, in 2024, bilateral trade between the two nations reached US$21.0 billion, marking an 11.7 percent increase from the previous year. China’s exports to Colombia amounted to US$14.78 billion, reflecting a 19.5 percent year-on-year growth, while imports from Colombia totaled US$6.25 billion, experiencing a slight decline of 3.1 percent. This resulted in a trade surplus for China of around US$8.5 billion.

Source: General Administration of Customs of China

China’s primary exports to Colombia encompass electronic products, electrical equipment, automobiles, clothing, and pharmaceuticals. Conversely, Colombia’s exports to China are diverse, with approximately 464 different products, including 30 agricultural items. Notably, Colombia stands as China’s second-largest coffee supplier, and China serves as Colombia’s second-largest beef export market. Other significant Colombian exports to China include crude oil, ferronickel, and gemstones.

China-Colombia bilateral investment

China has long maintained its position as the leading direct investment source from Asia in Colombia, with Chinese enterprises channeling capital into critical sectors such as infrastructure, mining, and energy. In 2019, China’s direct investment flow to Colombia was US$19.19 million, with a cumulative stock of US$307.1 million. Although 2020 saw a significant slowdown to US$0.85 million in flows, the following year experienced a contraction, recording a negative flow of –US$142.64 million, accompanied by a stock decline to US$108.81 million. This trend, however, reversed in 2022 when investment flows rebounded to US$78.62 million. The momentum continued into 2023, with flows surging to US$283.9 million and the cumulative stock reaching US$535.03 million.

Source: Ministry of Commerce of China, National Bureau of Statistics, and State Administration of Foreign Exchange

Colombia as an investment destination

Colombia’s attractive investment environment complements these inflows. As Latin America’s fourth-largest economy and second most populous nation, Colombia benefits from a large, dynamic market and a strategic geographic location as the region’s only two-ocean country. With 17 free trade agreements spanning 65 countries and regions, Colombia offers broad market access, stable macroeconomic conditions, a sound legal framework, and a high degree of openness to foreign investment. International rankings reflect these strengths: Colombia was positioned 56th among 64 economies in the 2021 Global Economic Prosperity and Competitiveness Report, improved to 12th among 50 economies in the 2024 World Bank Business Readiness report, and climbed to 61st out of 133 economies in the 2024 Global Innovation Index—up five places from 2023.

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Despite these strengths, recent assessments, including the US Department of State’s 2024 Investment Environment Report, indicate that Colombia’s overall investment appeal has been under pressure due to macroeconomic slowdowns and constrained public policy implementation. Recent data from the Colombian Central Bank show a notable decline in foreign direct investment in early 2024, with a 46.5 percent year-on-year drop in the second quarter to US$28.41 billion and a 28.6 percent decrease in cumulative FDI for the first half of the year, particularly within the mining and oil sectors.

Nevertheless, with a government prioritizing digital transformation and innovation—evidenced by initiatives boosting mobile internet access and streamlined online services—Colombia remains a compelling destination for foreign capital. The evolving China-Colombia investment relationship, driven by strategic Chinese investments and Colombia’s inherent market potential, continues to offer significant opportunities amid a shifting global economic landscape.

China-Colombia tourism

According to the World Tourism Organization, China has long been a major source of international tourists. In 2024, about 12,000 Chinese tourists visited Colombia—a 24 percent increase from 2023—yet this number remains modest compared to China’s annual outbound travel of over 160 million. Recognizing the untapped potential, the Colombian government and its foreign ministry are keen to expedite visa issuance for Chinese citizens, a move aimed at boosting tourism and attracting potential investors. Meanwhile, Colombian travel to China is also on the rise, with around 4,350 visa applications processed last year—a remarkable 244 percent increase over 2023—indicating significant room for growth in bilateral tourism and cultural exchange.

China-Colombia bilateral treaties and agreements

Since establishing diplomatic relations on February 7, 1980, China and Colombia have steadily deepened their bilateral ties through a series of pivotal agreements. Less than a year later, on July 17, 1981, both governments signed a government trade agreement to promote commercial exchange. In October 2008, the two nations bolstered their economic collaboration by signing the Bilateral Investment Promotion and Protection Agreement, laying a solid foundation for future investments. In July 2021, formal negotiations commenced on a Double Tax Avoidance Agreement, reflecting continued efforts to create a favorable investment environment.

A landmark moment came in October 2023 during President Petro’s state visit to China, when the two heads of state jointly issued a statement establishing a strategic partnership between the People’s Republic of China and the Republic of Colombia. In the same month, the Ministry of Commerce of China and Colombia’s Ministry of Trade, Industry and Tourism signed Memoranda of Understanding to set up both a Trade Facilitation Working Group and an Investment and Economic Cooperation Working Group. These agreements underscore the expanding scope of economic collaboration in areas such as energy, mining, infrastructure, green development, and the digital economy.

Notably, while cooperation has deepened in many fields, the two countries have yet to sign any agreements under the Belt and Road Initiative framework.

China-Colombia opportunities: Driving growth in key sectors

The evolving China-Colombia partnership offers significant growth opportunities across several strategic sectors, enabling both countries to leverage their strengths for sustainable economic development.

Energy transition

As Colombia seeks to modernize its energy sector and reduce reliance on fossil fuels, Chinese expertise in renewable energy technology and energy efficiency can be pivotal. Joint ventures in wind, solar, and hydroelectric projects not only support Colombia’s energy transition but also open avenues for technology transfer and financing models that benefit both economies.

Infrastructure construction

China’s global leadership in transportation infrastructure, especially in the development of advanced rail transit systems, presents enormous potential for Colombia. With an urgent need to construct urban, suburban, and interregional rail networks, Colombia stands to gain from Chinese technical know-how, innovative engineering solutions, and competitive financing. This cooperation could significantly enhance domestic connectivity, spur regional integration, and stimulate overall economic growth.

Green development

The push for green development is another area ripe for bilateral collaboration. Both nations are committed to building sustainable and resilient economies. Chinese investments and technological innovations in sustainable practices—ranging from energy-efficient building systems to pollution control—could help Colombia accelerate its transition toward a greener economy, reduce its environmental footprint, and achieve long-term sustainability goals.

Agriculture

Agricultural cooperation represents a mutually beneficial frontier. Colombia is keen to diversify and upscale its agricultural exports to China, while Chinese enterprises are interested in investing in Colombia’s agriculture sector. By integrating Chinese technology into various stages of agricultural production—from cultivation to post-harvest processing—Colombia can enhance productivity and quality, thereby broadening its export portfolio. This exchange promises to create a virtuous cycle: modernization in Colombian agriculture fosters stronger trade ties, which in turn incentivizes further investment and innovation.

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