China and Latin America:
By the Chinese economy should be 60 percent larger than that of the United States.
China then pushed outward in the s, pursuing markets beyond those of its East Asian neighbors. These initiatives brought extraordinary growth to the Chinese economy. For over three decades, from the late s to the world economic crisis ofChina grew at 10 percent or more a year, one of the longest and fastest rates of growth the world has ever seen.
China buys a third of the iron ore sold on world markets and a fifth of the copper, with much coming from Latin America. In these years trade with China increased 22 times over; with the world, just three times over. Brazil sends chiefly iron ore and soybeans, which together comprise 70 percent of their exports to China.
The China connection is principally with South America, not with Central America or the Caribbean, the result of the geography of natural resource distribution.
In the U. Indeed, it was the trade with China which helped save some of the Latin American region from the global recession, a time when exports to the U. The trade relationship is asymmetrical: China matters to Latin America, but the reserve is not really the case.
For all the shipments of crude from Venezuela, much of it peddled by China on the re-export market, Latin America is not a key source of oil for China. Latin America is re-becoming a raw material exporter to the world, and the reason is China. Driven by demand from China, world prices for mining products tripled on world markets from to Such primary product exports are far less significant in Latin American shipments to the rest of the world.
Already by complaints were coming from Brazil and Argentina about Chinese dumping of cheap industrial products into their markets, and Mexico was complaining about illegal smuggling of goods from China into their nation.
Raw material production generates fewer jobs when compared to other industries. When Chinese firms do open up in Latin America, and this is also beginning to happen more and more, they usually bring in their own work crews, hiring very few local workers, and least of all at the mid-level management level.
Researchers Kevin Gallagher and Roberto Porzecanski have argued that with China now more economically developed, there may be less room for Latin America to push into global markets, should it return to industrialization. There is a cost to bear in this raw material export opportunity.
Slowing Chinese Growth After growing at a double digit clip for several decades, in Chinese economic growth slowed to 9. In the Chinese economy grew at 7. The Economic Commission for Latin America and the Caribbean predicts it will grow at 7 percent this year, and at between 7 and 6 percent a year until As a sign of things to come, in trade between China and Latin America dropped 2 percent over These changes have had dire implications for Latin America.
The world economy grew at an average annual rate of 5. Those Latin American nations most linked to China have suffered the most; those with the weakest links to China—Mexico, Central America, the Caribbean—have been harmed the least.
As the China trade slows, Mexico, whose economy is still more linked to the United States, will outgrow most nations in the region, and Bolivia, selling essential fuel to Brazil and Argentina but nearly nothing to China, will be among the fastest growers.
China is now the largest source of international credit lines for Ecuador, Venezuela, and Argentina. China is also the leading partner in the New Development Bank, formed in by the Brics nations as an alternative to the International Monetary Fund.
Chinese president Xi Jinping met with Latin American leaders at a summit in Brasilia in July and subsequently inked an accord, the Cooperation Plan, with Celac, with the goal of increasing Latin American industrial processing of its own raw materials.
Globally some twenty-three nations recognize Taiwan and not China, and twelve of these are in Latin America. Other than Paraguay, all are in the Caribbean and Central America.
Ties with Taiwan are driven these days less by contempt for communism than by the very generous aid packages being offered up by Taipei. There was something of a major coincidence in this, for the boom in the China trade coincided with the rise of the left across much of Latin America.
The resulting surge in commodity prices has been fortuitous for progressive governance, allowing the anti-capitalist left to enjoy economic good times.
Previously, Latin American neoliberalism in the s and s championed increased globalization, including more trade with China. Ironically, it has been Chinese free trade capitalism that has helped to raise the fortunes of the Latin American anti-capitalist left.
But as the China trade ebbs and export revenues dry up, hard times may lie ahead for the commodity export-dependent governments of the Latin American left. Exclusive rights can be negotiated. For additional news and analysis on Latin America, please go to:A profile of the relationship between the United States and China from to the present day.
It’s a Myth That America Is a Christian Nation. Mexico and . China’s growing economy results in higher scrap demand. Another huge industry for US exporters is recycled scrap materials.
US companies exported $ billion of scrap last year, the two biggest of which were copper materials ($3 billion) and aluminum materials ($ billion). The international relationship between the People's Republic of China and the United States of America is quite strong yet complex.
Both countries have an extremely extensive economic partnership, and a great amount of trade between the two countries necessitates somewhat positive political relations, yet significant issues exist.
Since , U.S.-China relations have evolved from tense standoffs to a complex mix of intensifying diplomacy, growing international rivalry, and increasingly intertwined economies.
Chinese. FACT SHEET: U.S.-China Economic Relations The United States and China recognize their shared interest in promoting a strong and open global economy, inclusive growth and sustainable development, and a stable international financial system, supported by the multilateral economic institutions founded at the end of World War II that have .
Though China’s Latin America investment policy mainly targets raw materials, the country is broadening its approach to develop balanced bilateral relations.
In the last decade, China has successfully built strong commercial and investment relationships with Latin American and Caribbean countries.