Ecuadorian President Daniel Roy-Gilchrist Noboa Azin visited China in August 2026. The visit coincided with a significant milestone in bilateral relations—the tenth anniversary of the China–Ecuador Comprehensive Strategic Partnership. President Noboa’s diplomatic engagement reflects a broader trend across Latin American economies, which are increasingly pursuing high-value Chinese investments in green energy transitions, critical minerals and digital infrastructure.

Ecuador established formal diplomatic relations with the People’s Republic of China in 1980 under President Jaime Roldós Aguilera, following its transition to civilian governance.[1] A pivotal realignment occurred between 2007 and 2009 when Ecuador adopted the buen vivir (‘living well’) paradigm and moved away from neoliberal models.[2] After a sovereign debt default, Ecuador was effectively locked out of Western credit markets, the International Monetary Fund, and international bond markets. Consequently, President Rafael Correa turned to Beijing as an alternative lender of last resort, securing Ecuador’s initial Chinese loan of US$ 1 billion at a 7.25 per cent interest rate in 2009. A key provision of the agreement required Ecuador’s state-owned oil enterprise, Petroecuador, to supply Amazonian crude oil to Petrochina, the world’s second-largest publicly traded oil corporation.

Under these combined loan-and-oil arrangements, the China Development Bank (CDB) extended credit to Ecuador’s Ministry of Finance. Subsequently, Chinese energy firms purchased the crude at market rates and transferred the proceeds into Petroecuador’s designated account at CDB. Funds were then directly drawn from this account to settle Ecuador’s debt obligations. Beijing has extended over US$ 18 billion in financing to fund major Ecuadorian infrastructure projects through this model.[3]

The rapid concentration of short-term maturities put unsustainable pressure on Ecuador’s public finances. In response to these heavy financial obligations, successive administrations under Lenín Moreno and Guillermo Lasso sought to recalibrate the........

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