MEXICO CITY, June 13 -- The China-LatAm production capacity cooperation, which aims to upgrade the industries and infrastructure in Latin America and opens for third parties, will also benefit the economic ties between the European Union (EU) and Latin America.

The summit of the EU and the Community of the Latin American and Caribbean States (CELAC), held earlier this week in Brussels, Belgium, concluded with a new agreement promising to further strengthen the relationship between the two sides.

The EU pledged to invest 800 million euros (around 902 million U.S. dollars) in different sectors to help support the CELAC nations' development according to European Commission President Jean-Claude Juncker.

The EU and the MERCOSUR bloc, including Argentina, Brazil, Paraguay, Uruguay and Venezuela, also pledged Wednesday to accelerate their trade negotiations in the coming months.

This summit, held to strengthen economic ties between the EU and the CELAC, came two weeks after Chinese Premier Li Keqiang's Latin America tour in May, during which Li proposed the China-LatAm production capacity cooperation, and emphasized that the cooperation is also open to the United States and Europe that enjoy developed technology.

The Latin American and Caribbean countries have been serving as suppliers of raw materials for Europe and markets of European high-value-added products for centuries.

At present, however, affected by a weaker global market and falling prices of commodities, Latin America is in pressing need of capital and technology to expand its infrastructure, improve its manufacturing capabilities and reduce its heavy dependence on the export of raw materials to maintain its economic growth and sustainable development.

It is the right time for the China-LatAm production capacity cooperation, as China has cost-effective equipment and technology while Latin America needs infrastructure construction and industrial upgrading.

This cooperation will serve as an exemplary model for South-South cooperation and also provide new means for North-South cooperation.

As Premier Li has mentioned, part of the high-quality production capacity transferred from China to Latin America comes from enterprises from developed countries, like EU members Germany, France and etc.

In that sense, those developed countries from Europe are also part of the China-LatAm production capacity cooperation as the two sides continue to deepen their cooperative ties.

With the upgraded industries, the Latin American countries will be able to provide more and better products to the European market; EU member nations will also have more choices to invest in this continent, with the expanded economic ties.

Therefore, the China-LatAm production capacity cooperation, which is open to third parties, does not only seek win-win results for China and Latin America, but also an all-win scenario for both developing and developed countries.