China's Rebalancing: Opportunities and Challenges for LAC Exporters

Aasaavari, Nitya; Vittorio, Fabio Di; Lariau, Ana; Li, Yuebo; Mano, Rui; Rodríguez, Pedro Correa

doi:10.2139/ssrn.3758072

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“…This period is also called the commodity boom (Albright, 2022) because China's growing demand for commodities drove up global commodity prices, which led to an increase in the earnings of commodity‐exporting LAC countries (CEPAL, 2011). Chinese investment in LAC peaked in 2013 due to the slowing down and the rebalancing of the Chinese economy (Aasaavari et al., 2020). Colombia is among the least dependent on Chinese investments among LAC countries.…”

Section: Colombia's Economic Engagement With China 2000–2022mentioning

confidence: 99%

Colombia's economic relations with China: The role of economics and politics in trade, investment, and economic agreements

Quan

2024

Global Policy

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Over the past two decades, many Latin America and Caribbean (LAC) countries have deepened their economic relationship with China by accepting large amounts of Chinese investments and signing up for China's Belt and Road Initiative (BRI). However, Colombia has not followed such a path. Using cross‐border data on trade, investment, and economic agreements, this article demonstrates that Colombia's under‐engagement with China is driven by Colombia's lower competitiveness in the commodities sectors, where Chinese demand for LAC products is highest. Colombia's limited competitiveness has led to lower exports to China and lower amounts of Chinese investment. The low level of bilateral economic activities has resulted in a lack of incentives for Colombia to sign economic agreements with China, as well as general public skepticism toward China and more favorable attitudes toward the United States even though this trend has been on the decline since 2016. Colombia can benefit from strengthening ties with China, without distancing itself from the United States, on issues pertaining to energy transition and the development of rural infrastructure, which will help reduce inequality and broaden export diversification in the medium to long term.

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Section: Colombia's Economic Engagement With China 2000–2022mentioning

confidence: 99%

Colombia's economic relations with China: The role of economics and politics in trade, investment, and economic agreements

Quan

2024

Global Policy

View full text Add to dashboard Cite

show abstract

China's Rebalancing: Opportunities and Challenges for LAC Exporters

Cited by 1 publication

References 0 publications

Colombia's economic relations with China: The role of economics and politics in trade, investment, and economic agreements

Colombia's economic relations with China: The role of economics and politics in trade, investment, and economic agreements

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