Abstract: After the economic fluctuation in the 1990s, the economy in Latin America has entered into a new growth cycle since 2003.  The economic and trade cooperation between China and Latin America, with a trend of rapid development, realizes a new mutual benefit and win-win situation with a benign interactive.  During the past four years, the trade between the two parties has increased by almost 3 times, while the cooperation in FDI and the contract project has also experienced a rapid growth.   The growing economic and trade cooperation is one of the positive factors for growth.  It, however, confronts new challenges in a globalized market, which need the courage and wisdom from both parties so as to bring the cooperation into a new stage.