Between 2000 and 2009, trade between China and Latin America increased by 1,200% from $10 to $130 billion.[2] According to the Chinese Trade Ministry Counselor Yu Zhong, in 2011 the value of trade increased to $241.5 billion, making China the second largest trading partner of Latin America (the USA is the largest). The top five nations in this China-Latin trade were Brazil, Mexico, Chile, Venezuela and Argentina.[3]
In 2009 7% of Latin America's exports was to China. It consisted largely of raw material and commodities such as copper, iron ore, oil, and soybeans.[4] China was the largest export market for Brazil, Chile, and Peru and the second largest for Argentina, Costa Rica, and Cuba. Four nations contributed 90% of the exports: Brazil (41%), Chile (23.1%), Argentina (15.9%), and Peru (9.3%). Increased Chinese demand has also been argued to increase the commodity prices of Latin American exports.[2] In the case of Brazil the rise of a new middle class has even been seen as due to Chinese commodity demand.[5] On the other hand, a large part of the exports of Costa Rica (which has a Free Trade Agreement with China), El Salvador, and Mexico to China were high-tech manufactured goods.[6]
5% of China's exports went to Latin America in 2009 and consisted mainly of industrial and manufactured goods. Chinese goods are popular in part due to their low costs. Chinese manufacturers are also making substantial efforts to establish themselves as brand names for the new middle class.[2] China is investing in power plants in Brazil, and repairing a railway in Argentina.[7]
According to a 2012 Fitch ratings report, in 2010, 92% of Latin American exports to China were commodities; 85% of Chinese foreign direct investment went to extractive industries as did 60% of Chinese loans. The report stated that the effects are mixed but overall Latin America has benefited from the relationship with China by higher commodity prices, increased growth, increased investment, and improved governmental financials.[8] There are also concerns of environmental impacts related to the huge increase in extractive industries and agriculture by Chinese companies in Latin America, including pollution, deforestation, habitat destruction and rising fossil-fuel emissions.[9]
There have been concerns regarding the relationship due to Latin American dependency on exports of low-value added, highly price volatile commodities that employ relatively few people. Latin American manufacturers have faced increasing competition from China on both domestic and international markets. In some countries there have protests against the raising inflow of Chinese manufactured goods, local Chinese businesses, and perceived loss of manufacturing jobs to China.[2][8]
The book The Dragon in the Room: China and the Future of Latin America found that 92% manufacturing exports from Latin American were in sectors where China was increasing its market share while Latin America was decreasing its share, or where both China and Latin America where increasing their shares but Latin America at a slower rate.[10] Several experts have even argued that the long-term outlooks for Latin American manufacturing are poor and other sources for growth and trade such as services should be sought.[5]
China has been seen as an alternative to the United States and Europe by Latin American nations for support in the international community, for funding of infrastructure and humanitarian aid, and for creating economic growth. The number of high-level meetings between Chinese and Latin American officials have rapidly increased. These have been accompanied by several bilateral agreements.[2] The creation of the BRICS group also helped to increase relations between China and Brazil.
Leaked diplomatic cables describe a divided Latin American opinion regarding China. Neil Dávila, head of Mexico's federal agency for promoting foreign commerce and investments, stated "We do not want to be China's next Africa," reflecting a common concern regarding the effects of Chinese involvement in Africa. Colombia, Brazil, and Chile also expressed concerns while Venezuela and Argentina were convinced that dependency on the United States must end and saw China as the greatest opportunity for their exports. Chinese officials in response has accused US diplomats of spreading mistrust and Chinese Vice-president Xi Jinping in 2009 in Mexico stated that "China does not export revolution. China exports neither hunger nor poverty. We do not cause problems. What more can be said of us?"[12]
Many of the nations that continue to have official diplomatic relations with Taiwan are in Central America and the Caribbean. Taiwan has previously offered military exchanges and training as well as economic aid in return but has more recently had difficulty competing with China's economic incentives and in 2008 officially abandoned this "checkbook diplomacy". The remaining pro-Taiwan nations have been seen as waiting for better Chinese offers.[2]
In January 2019, numerous countries including the US recognized the legitimacy of opposition leader Juan Guaido as President of Venezuela. The PRC issued an official statement condemning American intervention in the internal affairs of Venezuela, supporting Nicolás Maduro in the struggle for the Venezuelan presidency.[15]
Military
Military relationships have been mainly through military-to-military contacts. In particular Venezuela, Chile, Bolivia, and Cuba have had frequent official military visits, exchange of military officers, and navy port calls. South American countries such as Venezuela, Bolivia, Ecuador, Peru and Argentina are buying Chinese weapons.[16][17] Chile, Ecuador and Peru were visited by a Chinese flotilla in 2009.[18]
In 2011 China and Bolivia signed a military-to-military cooperation agreement.[2]
The PRC actively seeks cultural exchanges with Latin America and CCTV-4 America has extensive Spanish language programming.
Relations with Latin American countries
Relations between China and Latin America
Note: Different political entities have controlled mainland China: the Empire of China from 221 BC to 12 February 1912, the Republic of China from 12 February 1912 to 7 December 1949, and the People's Republic of China from 7 December 1949 to present. Since 1949, there has been a dispute between the People's Republic of China (PRC), controlling mainland China, and the Republic of China (ROC), controlling Taiwan, over which government represents China. China was represented in the United Nations by the Republic of China (ROC) from 24 October 1945 to 25 October 1971 and is currently represented by the People's Republic of China (PRC) since 25 October 1971. This list covers diplomatic relations by Latin American countries with China under its different political representations.
Note: The Republic of China controlled mainland China from 12 February 1912 to 7 December 1949 and has controlled Taiwan since 7 December 1949. China was represented in the United Nations by the Republic of China (ROC) from 24 October 1945 to 25 October 1971 and is currently represented by the People's Republic of China (PRC) since 25 October 1971. Countries which maintain diplomatic relations with the People's Republic of China have to severe diplomatic relations with Taiwan due to the One China policy. Informal relations between Latin American countries and Taiwan are maintained.
^ abcdefghKatherine Koleski. Backgrounder: China in Latin America. May 27, 2011. U.S.-China Economic & Security Review Commission. "Archived copy"(PDF). Archived from the original(PDF) on 2012-04-16. Retrieved 2012-05-27.{{cite web}}: CS1 maint: archived copy as title (link)
^Kevin P. Gallagher and Roberto Porzecanski. The Dragon in the Room: China and the Future of Latin American Industrialization. 2010. Stanford University Press
^ ab"Archived copy"(PDF). www.american.edu. Archived from the original(PDF) on 6 June 2014. Retrieved 17 January 2022.{{cite web}}: CS1 maint: archived copy as title (link)
Hu-DeHart, Evelyn, and Kathleen López. "Asian Diasporas in Latin America and the Caribbean: An Historical Overview." Afro-Hispanic Review (2008): 9-21. in JSTOR
Hu-DeHart, Evelyn. "Indispensable enemy or convenient scapegoat? A critical examination of sinophobia in Latin America and the Caribbean, 1870s to 1930s." Journal of Chinese Overseas 5.1 (2009): 55–90.
López, Kathleen M. Chinese Cubans: A Transnational History (2013)
López-Calvo, Ignacio, ed. Alternative Orientalisms in Latin America and Beyond. (Cambridge Scholars Publishing, 2007).
Meagher, Arnold J. The Coolie trade: the traffic in Chinese laborers to Latin America 1847-1874 (2008).
Ryan, Keegan D. "The Extent of Chinese Influence in Latin America" (Naval Postgraduate School, 2018) online.
Young, Elliott. Alien Nation: Chinese Migration in the Americas from the Coolie Era Through World War II (2014).
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