I argue that Chinese decision makers had in mind two political concerns in foreign policy toward Latin America in the 1990s. One was that China needed to obtain political support from this region in order to balance the American uni-polar system and lay foundation for a new World order. The other was that Taiwan which hindered China from being a true global player had built a close relationship Latin American countries. Chinese trade relationships with this area were deeply connected with these political considerations. Since the end of cold war, the Chinese government had worked to build a new world order based on government-led trade policy. This study closely examines this geo-political calculation that prompted the Chinese foreign policy for Latin America. Furthermore this study traces down the evolving process of political and economic relationships between China and Lain America and discusses its significance.