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...
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...ve 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
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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.
Burns, E. B., & Charlip, J. A. (2007). Latin America: an interpretive history (8th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall.
In 2001 China entered the WTO it has made major stride in the world economy especially with trade agreements with the biggest capitalist economy and the biggest GDP and most developed country in the world the United States of America which has nearly 2.3 trillion of exported goods and service in 2013 (President, n.d.) When China entered in the WTO it had become the sixth largest economy and the largest market trade and was slightly ahead of Italy and just behind France. “China is third largest trading partner with the U.S and its trade surplus with the U.S. has increased to $201 billion around 2005 and by 2014 the total China-U.S. trade deals was 591 billion”. (Morrison, 2015) It had a global current account of $160 billion around 2005 (Hufbauer, Wong, & Sheth, 2006). As of 2015 “China is the U. S’s second largest trading company and the third largest export company and its biggest source of import”. (Morrison, 2015) Sales from a foreign affiliated U.S. firms in China totaled at 364 billion by 2013. (Morrison, 2015). What is also amazing is that China has the biggest U.S. treasury bonds and that keeps U.S interest rate low. Between 2010 to 2014 General Motor sold more cars in the Chine’s market than in the U.S. market and many U.S. firms participate in Chinese market to stay globally competitive. (Morrison, 2015). This kind of
Harry E. Canden. , & Gary Prevost, (2012). Politics Latin America. (4th ed.). New York: Oxford University Press.
It, however, was a sales pitch to continue Latin America’s subordinate position in the global market. As a result, much of Latin America, from the late 1980 through the early 1990s, transitioned into this form of “democracy”. Consequently, Latin America suffered and still suffers today from underdevelopment, high levels of socioeconomic inequality, and immigration. Globalization of capital, off-shore production, and new technologies have created structural barriers and have led to economic and social inequalities among the Latino communities in the U.S. Politically, the program changes the control of the political system to less direct coercive rule. Economically, it eliminated state intervention in the economy; this allowed the adjusting of local economies to serve the global economy instead of their national economy.
Bearing in mind that the threat of China’s dependency on imports of natural resources has the potential to threaten the official ideology of Confucianism, the real threat is to the interests of the state and the Communist Party of China, because the future of the party and stability of the country is dependent on the continued growth of the Chinese economy. Maintaining the flow of raw materials is the main objective of the PRC because without them the economic engine of the China would be at a stand still, which has the potential to be seen by the people of China as a weakness and flaws in the current governing system. China should continue developing trade relations and international connections because the PRC has been remarkably successful in creating a network of countries who will be loyal in business and political reform. China has has a strategic focus on building relations with nations whom America is not keen on. This has also perpetuated the realization the the Chinese system of governance provides a second option to the ‘Western Consensus’, as a viable means for successful economic growth coupled with strict government control. China must operate multilaterally to continue the trajectory of relation and loyalty building in other countries. This will assist china with the key pillar goals of, building a comprehensive national power; advance incrementally in order to consolidate a position of strength, and maintaining stability, and with the objective that China will be in the position to continue imports of raw material to Chinese industry in the event of a sea trade embargo from opposition countries like the United...
It seems China’s interest in African countries is not in territorial occupation, but rather in international prominence and expanding its rapidly growing economic agenda. Kenya’s richness in commodities and weak commercial laws are an idealistic setting for rapid market entry, therefore China has been able to effortlessly influence and expand its mercantilist ambitions without distress of competition from the west. Even though the United States is focused in providing conditional aid to Kenya, the effects of Chinese expansion in Kenya on U.S. interest are alarming, for China is offering cold hard cash that is f...
China’s trade with the world grew substantially in the first three decades of the 20th century, marking a historic time for the country. In the 1840s, the Chinese economy was strongly closed; however, when Great Britain and other powerful countries pressured their economy, China was willing to open international trade within their own economy. Over the next 60 years, China experienced a small opening of trade amongst other foreign powers, allowing transactions amongst foreigners allowed. The funded railroad aroused industrialization, as well as publicity and overseas shipping (Yan, 2014). The main reason for moderation in China is because they are so much more focused on production rather than consumption. Last year, China’s consumption accounted for 35 percent of their economy; a little over 10 years ago, it was rated that 50 percent accounted for their overall consumption (Reich, 2010). Foreign exports and imports arose dramatically, increasing the yearly expansion rate of trade to about 7.4 percent. The Chinese economies share in world trade grew a little under 2 percent from the late 1800s to the mid 1900s. By the early 20th century, comparative advantage was presented all throughout their economy (Yan, 2014).
Journal of the American Oriental Society 121.4 (2001): 614-622. JSTOR.com - "The New York Times" Web. The Web. The Web. 28 Feb 2014.
National economics are often adversarial in nature, a global contest where countries seek to gain advantage over their neighbors, all in the name of wealth and gain. America is no stranger to the game; the U.S. has been the world’s economic leader for the better part of a century. China, however, is the leading contender for the economic top-spot (), and America continues playing directly into China’s hand. America’s current trading posture with China is drastically skewed in China’s favor; if America is going to preserve its position as the leading economic power, existing U.S.-Chinese trading agreements will need to be revised, and additional regulations must be introduced to promote balanced dealing.
The Web. The Web. 27 May 2014. http://www.jstor.org/stable/10.2307/1354343?ref=search-gateway:1c7b5d35c756095be3255402d85e5e3f>. Nathan, Andrew J. "U.S.-China Relations Since 1949."
In 1978, China was positioned 32nd on the planet in export volume, yet it had multiplied its reality exchange and got thirteenth biggest exporter in 1989. Between 1978 and 1990, the normal yearly rate of exchange extension was over 15 percent,[11] and a high rate of development proceeded for the one decade from now. In 1978 its exported on the in the world of the overall industry was insignificant, in 1998 regardless it had short of what 2%, however by 2010, it had a world piece of the overall industry of 10.4% as stated by the World Trade Organization (WTO), with stock fare offers of more than $1.5 trillion, the most astounding in the world.
The article “U.S., China and Thucydides” (Robert B. Zoellick, 2013) addressed the security dilemma between the rising China and the U.S. through the historical story, “the Thucydides trap”. In addition, the chapter 15 in the book US FOREIGN POLICY, by Michael Cox and Doug Stokes, indicated the situation of changing East Asia, rising China, and the role of the U.S. in this region in different periods. Therefore, the materials have revealed an important question about Sino-US relation, which is should the United States cooperate or compete with the rising China?
Turner, Oliver, “Sino-US relations then and now: Discourse, images, policy”, Political Perspectives 2011, vol. 5 (3), 27-45, http://www.politicalperspectives.org.uk/wp-content/uploads/Sino-US-relations1.pdf
...st and stand in the world. It is predicted that China will one day be the largest economy growing country in world. They continually growing and rebalancing their world to be the best. The growth of economy will depend on the Chinese government comprehensive economic reforms that more quickly accelerate in China transition to a free market economy. The consumer demand, rather than exporting the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental. (Morrison, 2014,para2)
China has also expanded their trading industries with countries such as South Korea, Japan, Taiwan, ASEAN, India, Russia and Hong Kong. This has not satisfied the Chinese greed for income as they also export and import goods to American countries, name...