Sunday, 07 June 2020


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China seeks 'El Dorado' in Latin America: prosperity or danger in sight?

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In recent times there is an active expansion of China in Latin America, which entails both benefits and dangers for the region. Who wins and who loses with the arrival of the second global economy? "Few places in the world have benefited both the rise of China as Latin America, indicates the web site Mining Press, which lists the following information:" In 1990, China ranked only 17th place in the list of destinations for Latin American exports. However, in 2011 it became the main export market for Brazil, Chile and Peru, and the second for Argentina, Cuba, Uruguay, Colombia and Venezuela. The volume of annual trade in this period increased from the $ 8 billion to 230 billion dollars. China expects to 2017 this sum amounts to $ 400 billion. Latin America has many resources that need the most populous country in the world, as the Chilean copper, Peruvian zinc or iron ore from Brazil, which are being exported in great quantities, as well as numerous agricultural products, such as meat, chicken, soy, corn, coffee and food for animals. However, the rapid expansion of economic cooperation is also a process that causes concern in the context of a possible slowdown in China. So believes the Venezuelan academic and diplomat, Alfredo Toro Hardy, who in his book 'The World Turned Upside Down', argues that in such situations there are always losers and winners. Economic symbiosis The author puts as an example the slowdown of the "boom" in the 1990s, moment in which the losers were Mexico and "economies of the Mexican type" of Central America with low-cost assembly plants for the manufacture and assembly. In particular, as grew industrial processes in China, factories of Mexico - a net importer of raw materials - lost their competitiveness. The winners were Brazil and "economies of the Brazilian type" of South America. Not only China greatly increased its imports of basic products of countries like Peru and Chile, but that the supercycle of goods also boosted their prices to record levels. Most importantly, establish a business relationship that maximizes the value added while it is only creating brands or transform raw materials. "Canada, Australia and Chile are proof of that being an exporter of raw materials of first quality does not mean necessarily having a second-rate economy", concludes.   [caption id="" align="alignnone" width="630"]China map Corbis[/caption] From
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