Essay on Chinese Influence and Expansion in Latin America

Essay on Chinese Influence and Expansion in Latin America

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Chinese influence and expansion has reached Latin America and the Caribbean. Over the past 10 years, the Chinese government has aggressively pursued a trade policy emphasizing a growth in Chinese manufactured imports and exports of Latin American raw materials. China’s focus is on exporting raw materials; such as soybeans, metals, and oil in exchange for a vast amount of Chinese manufactured goods. This aggressive push into the Latin American trade theater has provided exponential growth in the region. However, this Chinese economic model is slowly readjusting the region back to its pre-1970’s state of over-dependence on commodity exports. In addition to becoming a major trade partner in the region, China has become a financial investor in the nations so heavily that many fear China will soon surpass the United States as the major player in the region.
China is rapidly increasing its involvement in the region. Over the past few years, Chinese trade has increased around 30% each year to meet their demand/need for raw materials. In 2010, “China’s share of the regions trade has reached 20%... up from just 1% in 1995.” (Stier 259) This increase has made China the top trade partner for Brazil, Argentina, and Chile and a leading partner in many other Latin American and Caribbean nations. The increase in trade has had a major impact on Latin American economics though as between 2002 and 2010, the number of Latin American people living in poverty dropped from 44% of the population to only 32%.
China’s involvement in Latin America expands further than being involved in trade as they have made a move into becoming a major financial leader and regional investor in Latin America and the Caribbean. In 2011 alone, Chinese banks and i...

... middle of paper ... Chinese influence without losing the all-important monetary investment, they will return to a state of over-dependency on a single nation. In conclusion, the markets of Latin America are at risk of following solely under the influence of the behemoth Chinese economic model; however, is this market strategically vital enough for the United States or other major player to attempt to stunt Chinese expansion?

Works Cited

Dosch, Jorn, and David S. Goodman. "China and Latin America: Complementarity, Competition, and Globalisation." Journal of Current Chinese Affairs 41 (2012): 3-19. GIGA. Web. 10 Mar. 2014.

Dreyer, June T. "China Engages Latin America: Tracing the Trajectory." The Journal of Asian Studies 71.1 (2012): 204-06. Cambridge Journals Online. Web. 10 Mar. 2014.

Stier, Kenneth J. "China in Latin America." CQ Global Researcher 6.11 (2012): 257-80. Print.

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