China-Latin America Relations: Long-term Boon or Short-term Boom?

Abstract

The primary focus of this article is on the political and economic impact of China's trade relations with Latin America. However, many aspects of China's commodities'-based trade and investment ties with developing countries in Africa as well as with developed economies, like Australia's, share important similarities to China's ties with Latin America.

The international implications of the Chinese model of development in the Global South: Asian Consensus as a network power

“…First, PRC needs more and more energy and natural resources to support its domestic development (Ferchen 2011), which resulted in an average growth of about 9% in the last 30 years. In this context, developing countries in Latin America and Africa, rich in natural resources, are presented as ideal partners for PRC.…”

Towards a New Political Economy of Development

“…On the other hand, sceptical analyses tend to reject such win-win assessments (Ferchen 2011;Jenkins 2010Jenkins , 2012Phillips and Corredor 2011: 124-5). At the heart of this scepticism is a critique of the alleged developmental benefits to be obtained by Latin American partners from closer economic ties with China, at least those economic ties that have been most evident thus far.…”

“…Thirdly, it is of course possible to speculate that, over time, the resourcebased income flows that have enabled the creation of SWFs will diminish (Ferchen 2011). Yet that is precisely part of the strategic logic and economic efficacy of such 'rainy day' funds, logic that links them directly to wider long-term developmentalist strategies (Sinnott et al 2010;Taylor 2011).…”

China y América Latina: ¿Socios estratégicos o competidores?

“…China's increasing demand for commodities like oil, iron, ore and some agricultural products, and its massive currency reserves -which peaked at almost $4 trillion USD in July 2014-, might explain why China has strengthened its diplomatic and commercial ties with Latin American countries (Barboza, 2009;Ellis, 2005;Ferchen, 2011;Gallagher, 2016& Wise, 2016) from investing in infrastructure projects, SWAP agreements and as the most recent Asian member of the Inter-American Development Bank since 2009 (Russo, 2014).…”

“…Among them, Ferchen (2011);Ellis (2014), Gallagher (2016) and Wise (2016) argue that the relationship between China and LAC has been driven by the Chinese increasing commodities such as oil, iron, ore and some agricultural products, business ventures and diplomatic necessity for initiatives with friendly regimes in the region.…”