China’s rapidly expanding economy and need for resources have led to its economic expansion into Latin America. Since 2000 trade between Latin America and China has grown to the tune of $40 billion, and includes debt forgiveness and buying oil fields. Last month, Chinese media outlet People’s Daily Online investigated the numerous benefits of contact between Latin America and China including Beijing residents enjoying bread from Mexico and how Latin Americans are learning more about Chinese culture. However, critics point out that Chinese economic expansion into Latin America is moving too fast, and that China will ultimately exploit Latin America and leave it in a bad state.So what do you think? Are relations between China and the Americas mutually beneficial or dangerously one-sided?
Is there a legitimate security concern with increased Chinese activity in Latin America or is that an overreaction? Are U.S. interests in the Americas in danger of being supplanted by china or do they have nothing to worry about?
Go ahead and express your opinions via the comments section of this post. What do you think?
Links- The Latin Americanist (blog), People’s Daily Online, Voice of America, San Francisco Chronicle
Image- the Globalist
Tags- China, Latin America, international economy, free trade
9 comments:
Latin America will be exploited in the end. it is in their nature for developed countries to act like greedy pigs on the world stage, and the Chinese are no exception at all. Funny, the more their economy grows, the more they become like the US. For example, there is an article in TIME about the skyrocketing rates of divorce in Chinese thanks to over-exposure to western culture. But who will be to blame? The exploiter who just wants to cut corners and save money he already has enough of, or he who lets himself be exploited in the hopes of making a fast buck?
Point taken, mariposa. But does that mean that Latin America will always be on the short end of the stick and taken advantage of by another country? Based on what you commented it would some like Latin America will always be on the periphery to be taken advantage of by the U.S., China or some other nation. (see: dependency theory)
I don't necessarily agree with the notion that China will eventually "devour" Latin America. If things are done cleverly enough, the region can and will profit enormously from new trade partners in Asia. The US will no longer be the exclusive benefactor of cheap Latin American goods; there will be other markets upon which Latin America could rely upon for the negotiation of better business deals. It's about actually having a choice when it comes to negotiating good terms. Thanks for the space provided.
Thanks for your comment, ruizskbo. It's possible that the U.S. is willing to have China as "an" economic partner with Latin America hust as long as it does not become "the" partner. China definitely has a market available not only for Latin American goods but also for those of any other developing region.
Oops, I meant "just as long", not "hust as long".
The impact of China on Latin America ll be very different for different countries. Chinese demand for resources is not a threat but looks to be a good thing for commodity-exporting countries in South America, who will benefit from a commodity price boom. It goes without saying that Chinese investment is driven by self-interest, but at least it provides a potential alternative to equally exploitative US investment or conditional World Bank loans - as ruiskbo says, choice is a good thing. If anything, the losers will be countries like Mexico that export manufactured goods and face tough Chinese competition in the US and EU markets. Read more about this in my recent blog post on http://lac.civiblog.org
Chinese demand for raw materials is not a threat, but should be a good thing for commodity-exporting countries like South America. It goes without saying that Chinese investment is driven by self-interest but at least it provides an alternative to equally self-interested US investment and conditional World Bank loans - as ruizskbo says, choice is a good thing. If anything, the real losers will be countries like Mexico who export manufactured goods and face tough competition from China. I talk more about this on a recent blog post at http://lac.civiblog.org
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