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Economics & Trade

China applies to join South American financial group

China wants to join the Inter-American Development Bank (IADB), Latin America's largest financing institution, to boost development and increase its influence in the region. It was understood that IADB President Luis Alberto planned to sign a memorandum of understanding Sunday with People's Bank of China chief Zhou Xiaochuan to formalize China's request for membership, AP reported, citing bank officials. The IADB directors will hold their annual meeting in Guatemala City Monday and Tuesday but it could take years for China's application to be accepted. It would become the third Asian member – out of a total of 47 – after South Korea and Japan. Chinese trade with South America has grown to more than US$40 billion per year, but this is still only 10% of US trade with the region. Beijing is keen to further ties as a means of accessing South America's abundant natural resources as well as nullifying Taiwan's diplomatic efforts.

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