China has offered to create a $10 billion credit line that would be used to support infrastructure projects in Latin American countries.
China's Premier Wen Jiabao made the announcement yesterday as he wrapped up a visit to the region.
Jiabao has also proposed the creation of a trade pact between China and South American countries including Brazil, Argentina, Uruguay and Paraguay.
China has the largest foreign exchange reserves in the world and has been looking for new areas to invest.
Jiabao said his administration will continue to offer economic assistance to countries that are interested.