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China's Economic Influence in Latin America

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  • Barbara Kotschwar

Abstract

type="main"> After decades of low-level commercial interaction, China and Latin America significantly ramped up their economic relationship in the 2000s. China has jumped to first place as an export destination for many countries, and it is a major source of imports for all countries in the Latin America/Caribbean region. While not a major source of foreign direct investment overall, China has built a strong investment presence in certain countries, particularly in the natural resource and infrastructure sectors. China's influence in Latin America has presented a great opportunity for many countries, but it has also brought new risks. Three main challenges face the region: how to mitigate the impacts of increased commodity concentration as a result of China's strong demand for natural resources; how to avoid other natural resource curse effects; and how to manage the tapering of this growth. Latin American countries' relationships with China vary widely, so there is no single, coordinated regional response.

Suggested Citation

  • Barbara Kotschwar, 2014. "China's Economic Influence in Latin America," Asian Economic Policy Review, Japan Center for Economic Research, vol. 9(2), pages 202-222, July.
    • Handle: RePEc:bla:asiapr:v:9:y:2014:i:2:p:202-222
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    File URL: http://hdl.handle.net/10.1111/aepr.12062
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    Cited by:

    1. Akio Hosono, 2014. "Comment on “China's Economic Influence in Latin America”," Asian Economic Policy Review, Japan Center for Economic Research, vol. 9(2), pages 223-224, July.
    2. Yip, Tsz Leung & Wong, Mei Chi, 2015. "The Nicaragua Canal: scenarios of its future roles," Journal of Transport Geography, Elsevier, vol. 43(C), pages 1-13.
    3. Kechagia, Polyxeni & Metaxas, Theodore, 2016. "FDI in Latin America: The case of Peru," MPRA Paper 72399, University Library of Munich, Germany.
    4. Metaxas, Theodore & Kechagia, Polyxeni, 2015. "FDI in Peru and Uzbekistan: A comparative analysis in brief," MPRA Paper 63849, University Library of Munich, Germany.
    5. Eichenauer, Vera Z. & Fuchs, Andreas & Brueckner, Lutz, 2018. "The Effects of Trade, Aid, and Investment on China's Image in Developing Countries," Working Papers 0646, University of Heidelberg, Department of Economics.

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