Saturday, 06 June 2020


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Latin America, a extraterritorial potential platform of China?

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Latin America could become an 'extraterritorial platform' of China, being a prisoner of the increasing 'primarization' of its economy, according to a report by one of the structures of the UN. The study by the Economic Commission for Latin America and the Caribbean (ECLAC) shows that Latin American economies currently account the 13 % of the direct investments in the exterior (DIE) Chinese in the world, or what is the same thing: approximately 31 billion dollars. The ECLAC said that between 2003 and 2009, Chinese companies have invested 24 billion directly in the natural resources sector, industry and services in Latin America. Moreover, ECLAC highlights the marginality of Latin American of the DIE in China. The seven countries that invest in the Asian giant (Argentina, Brazil, Chile, Mexico and to a lesser extent Colombia, Peru and Venezuela) are not even 0.1% of total of the DIE in China, representing between 70 and 80 million. In 2009 the volume of bilateral trade between the two regions reached 120 billion. Latin American exports, mainly made ​​up of primary raw materials to Asia amounted to 103 billion dollars, 15% of total exports from the region. U.S. received 42% of Latin American exports and the European Union (EU) 14%. According to ECLAC, China could snatch to the EU the position of second largest trading partner of Latin America in 2014. The Chinese-Latin American trade is known for being rather unbalanced. The countries export mainly primary commodities and low-value-added (soy, iron, copper, oil, etc.), While China exports manufactured goods such as textile, paper, automobiles, electronics and technology products. China has become a key export market for six countries: Argentina, Brazil, Chile, Costa Rica, Cuba and Peru. Between 2005 and 2008 five countries accounted for 86% of exports from the subcontinent to China: Brazil (33%), Chile (25%), Argentina (12%), Mexico (9%) and Peru (7%). While that Argentina, Brazil, Chile, Mexico, Dominican Republic, Paraguay and Peru have become more dependent on Chinese imports. Between 2000 and 2009, Chinese imports increased from 4.6% to 12.4% (U.S. imports decreased from 18.9% to 13.2% of the total and of the EU from 23.5 % to 16.8%). Mexican imports from China grew in 2000-2009 from 2.2% to 13.9%. In the same period, the imports from Mexico to U.S. passed from 71.2% to 48.1% and the EU from 8.4% to 11.7%. Mexico is the largest importer of Chinese manufactured goods in value terms in Latin America.   [caption id="" align="alignnone" width="630"]Platform AFP / Jody Amiet[/caption] Source:
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