Trade, investment and finance – the ties between China and Latin America

The growing importance of China in Latin America predetermines the need to study the directions of China's economic interests in the region. The article is devoted to the trade, investment and financial relations of China with the countries of Latin America. The trends of the development of mutual trade are studied, the geographical structure of trade is analyzed, and special attention is paid to the potential of trade cooperation. Within the framework of investment relations, the role of China as an investment donor country is emphasized, and its place among other investors in the Latin American region is determined. Noting the inadequacy of their own financial resources of Latin American countries for the implementation of investment projects, the mutually beneficial investment cooperation is highlighted. The materials presented and analyzed in the article indicate that the implementation of joint financial projects has a positive effect on ensuring the sustainability of the economies of Latin America and China. The obtained results of the study indicate the presence of potential for further cooperation.

Keywords

China, Latin America, «One belt, one road», international trade, international investment, financial relations, neocolonialism

Received

02.05.2021

Publication date

24.11.2021

Number of characters

30132

Cite

GOST	Wanting Z., Kolesnikova T. Trade, investment and finance – the ties between China and Latin America // Latin America – 2021. – Issue 12 C. 6-23 [Electronic resource]. URL: https://latamerica-journal.ru/S0044748X0017492-0-1 (circulation date: 05.05.2024). DOI: 10.31857/S0044748X0017492-0
MLA	Wanting, Zhang, Kolesnikova, Tatiana "Trade, investment and finance – the ties between China and Latin America." Latin America 12 (2021):6-23. DOI: 10.31857/S0044748X0017492-0
APA	Wanting Z., Kolesnikova T. (2021). Trade, investment and finance – the ties between China and Latin America. Latin America (12), pp.6-23 DOI: 10.31857/S0044748X0017492-0

100 rub.

When subscribing to an article or issue, the user can download PDF, evaluate the publication or contact the author. Need to register.

Number of purchasers: 0, views: 567

Readers community rating: votes 0

1. China's Policy Paper on Latin America and the Caribbean, Ministry of Foreign Affairs of the People’s Republic of China. 24.11.2016. Available at: https://www.fmprc.gov.cn/mfa_eng/zxxx_662805/t1418254.shtml (accessed 10.11.2020).

2. 周冲,周东阳.“一带一路”背景下中国与拉美国家贸易潜力研究基于引力模型的实证分析. 工业技术经济, 2020, N 10 (General，No. 318), pp. 63-71. [Zhou Chong, Zhou Dongyang. Research on the Trade Potential between China and Latin American Countries under the Background of "One Belt One Road" - An Empirical Analysis Based on Gravity Model] Industrial Technology Economy, 2020, N 10 (General, No. 318), pp. 63-71 (In Chinese).

3. 中国现代国际关系研究院拉美研究所课题组.中拉“一带一路”合作：挑战与深化路径. 国际问题研究.2020, N2, pp. 79-92. [Research Group of the Institute of Latin American Studies, China Institute of Modern International Relations. China-Latin America "One Belt One Road" cooperation: challenges and deepening paths] Research on international issues, 2020, N 2, pp. 79-92. (In Chinese).

4. 张勇．“一带一路”助中拉合作转型升级．经济日报，2019-04-28，N 5. [Zhang Yong. "One Belt, One Road" helps China-Latin America cooperation transform and upgrade] Economic Daily, 2019-04-28, N 5. (In Chinese).

5. 岳云霞．中拉经贸合作:改革开放的动能、影响与导向.海外投资与出口信贷，2018 N 6, pp. 25-29. [Yue Yunxia. China-Latin America economic and trade cooperation: the momentum, influence and orientation of reform and opening up] Overseas investment and export credit, 2018, N 6, pp. 25-29. (In Chinese).

6. Statistics, UNCTAD. Available at: https://unctad.org/statistics (accessed 10.11.2020).

7. Yakovlev P.P. Pered kakimi vyzovami stoit Latinskaya Amerika? Latinskaya Amerika. M., 2017, №1, cc. 5-21.

8. Okuneva L.S. Impichment prezidenta Brazilii: razmyshleniya i vyvody. Latinskaya Amerika, M., 2016, №10, cc. 5-22.

9. Rozental' D.M. Obraz strany. Rassuzhdeniya o «myagkoj sile» Venesuehly. Latinskaya Amerika, M., 2016, №11, cc. 68-80.

10. Kal'yuni Eh.O., Chadaeva Eh.A. Braziliya: ehnergeticheskaya politika i ehnergeticheskaya bezopasnost' vo vremena politicheskogo i ehkonomicheskogo krizisa. Innovatsii i investitsii, 2017, № 12, cc. 79-84.

11. Wenhong Hu. Policy coordination between China and Latin American countries under the framework of the belt and road initiative. Kontury global'nykh transformatsij. 2019, Moscow, № 3, ss. 129-150.

12. Zhan' Tan'. Investitsii Kitaya v strany Latinskoj Ameriki. Rossiya i strany Latinskoj Ameriki i Karibskogo bassejna: ehkonomika, kul'tura, obrazovanie. Sbornik materialov po itogam mezhvuzovskoj nauchno-prakticheskoj konferentsii. Sankt-Peterburg, 2018, ss. 47-49.

13. Brazil and China: From commercial allies to strategic partners. 25-Oct-2019. Available at: https://news.cgtn.com/news/2019-10-24/Brazil-China-relationship-From-commercial-allies-to-strategic-partner-L1HELKx1YY/index.html (accessed 10.11.2020).

14. Godovoj obzor, Soglashenie o svobodnoj torgovle – simvol otkrytosti Kitaya, Russian.news.cn Available at: http://russian.news.cn/economic/2015-12/21/c_134936227.htm (accessed 10.11.2020).

15. Medeiros, C.A., Cintra, M.R. Impacto da ascensão chinesa sobre os países latino-americanos. Brazilian Journal of Political Economy, 2015, pp. 35 (1). Available at: https://www.scielo.br/j/rep/a/DxWvnvThGXqwWN8FBkgVXqK/abstract/?lang=pt (accessed 10.08.2021).

16. Shumilov A.V. Otsenivanie gravitatsionnykh modelej mezhdunarodnoj torgovli: obzor osnovnykh podkhodov. Ehkonomicheskij zhurnal VShEh, 2017, T. 21, № 2, cc. 224–250. Available at: https://ej.hse.ru/data/2017/06/28/1171153489/%D0%A8%D1%83%D0%BC%D0%B8%D0%BB%D0%BE%D0%B2.pdf (accessed 10.11.2020).

17. Shina and Panama Sign Memorandum of Understanding on Trade in Services Cooperation. Ministry of commerce People's Republic of China, 2018. Available at: http://english.mofcom.gov.cn/article/newsrelease/significantnews/201812/20181202813954.shtml (accessed 10.11.2020).

18. Belt and Road Countries – Uruguay. Available at: https://en.imsilk-road.com/p/316681.html (accessed 10.11.2020).

19. Grenada And China Sign A Memorandum Of Understanding For The “Belt And Road” Initiative. Available at: https://www.thegrenadainformer.com/news/item/4899-grenada-and-china-sign-a-memorandum-of-understanding-for-the-belt-and-road-initiative (accessed 10.11.2020).

20. CIJN Staff Writers. The Caribbean Engages the Belt and Road Initiative. Carribbean Investigative Journalism Network. Available at: https://www.cijn.org/the-caribbean-engages-the-belt-and-road-initiative/ (accessed 10.11.2020).

21. Holland, M., Barbi, F. China na América Latina: uma análise da perspectiva dos investimentos diretos estrangeiros. Coediciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), 2020, pp. 1402. Available at: https://repositorio.cepal.org/handle/11362/1402 (accessed 10.08.2021).

22. World Investment report 2020. International production beyond the Pandemic. 268 p. Available at: https://unctad.org/system/files/official-document/wir2020_en.pdf (accessed 10.11.2020).

23. Lavut A.A. Novyj ehtap razvitiya kitajsko-latinoamerikanskikh otnoshenij. Latinskaya Amerika, M., 2018, № 12, ss. 59-73.

24. World Economic Outlook Database. Available at: https://www.imf.org/en/Publications/WEO/weo-database/2020/October (accessed 10.11.2020).

25. The Global Competitiveness Report 2018. Available at: https://reports.weforum.org/global-competitiveness-report-2018/competitiveness-rankings/#series=GCI4.A.02 (accessed 10.11.2020).

26. 王飞. 中国 - 巴西基础设施建设合作：进展、挑战与路径选择. 国际问题研究, 2020, N 1, pp.54-66. [Wang Fei. China-Brazil Infrastructure Construction Cooperation: Progress, Challenges and Path Selection] International Studies, 2020, N 1, pp. 54-66. (In Chinese).

27. “国家电网在巴西投资超 124 亿美元”，新华网，2019. ["State Grid has invested over 12.4 billion U.S. dollars in Brazil"], Xinhuanet, 2019. Available at: http://www.xinhuanet.com/2019-05/24/c_1124539171.htm (accessed 10.11.2020). (In Chinese).

28. 王秉良．中国阿根廷铁路改造项目签约. 人民日报海外版. [Wang Bingliang. Signing contract for China-Argentina railway renovation project] People's Daily Overseas Edition. Available at: https://www.yidaiyilu.gov.cn/xwzx/hwxw/73237.htm (accessed 10.11.2020). (In Chinese).

29. “中拉产能合作基金首任总经理韩德平在走出去智库会议上的演讲”，["Speech by Han Deping, the first general manager of the China-Latin America Capacity Cooperation Fund, at the Going Global Think Tank Conference"]. Available at: http://www.cggthinktank.com/2018-08-23/100076387.html (accessed 10.11.2020). (In Chinese).

30. 安永（中国）企业咨询有限公司. 拉美基础设施项目投资税收指南. 中国外汇. 2020-15-08 [Ernst & Young (China) Corporate Consulting Co., Ltd. Latin American Infrastructure Project Investment Tax Guide] China Foreign Exchange. 2020-15-08 (In Chinese).

31. Ease of Doing Business rankings. Available at: https://www.doingbusiness.org/en/rankings (accessed 10.11.2020).

32. 徐润琳. 中国对拉美地区直接投资的贸易效应研究. 国际经济研究院. 2019, 64 p. [Xu Runlin. Research on the Trade Effect of China's Direct Investment in Latin America] Institute of International Economics, 2019, 64 p. (In Chinese).

33. Porter M. Mezhdunarodnaya konkurentsiya: konkurentnye preimuschestva stran. M.: Al'pina Pablisher, 2016, 947 s.

34. 王飞. 区域性公共产品与中拉“一带一路”金融合作. 区域与全球发展, 2020, № 2, pp. 18-30.

35. Safronova E.I. Latinoamerikanskij vektor aktual'noj vneshnej politiki Kitaya. Latinskaya Amerika, M., 2020, №2, ss. 30-46.

36. Jeifets V. Russia and China in Latin America. An Alliance of Convenience, in Noesselt N. (ed.). China’s Interactions with Latin America and the Caribbean: Conquering the US’s Strategic Backyard? East Asian Politics: Regional and Global Dynamics. Baden-Baden: Tectum Verlag, Vol. 2, 2020, pp. 255-304.

37. Serbin A. Evraziya i Latinskaya Amerika v mnogopolyarnom mire. Simferopol': N.Orianda, 2020, 200 s.

38. Charles P. Kindleberger. Dominance and Leadership in the International Economy: Exploitation, Public Goods, and Free Rides. International Studies Quarterly, 1981, Vol. 25, N 2, pp. 242-254. Available at https://www.jstor.org/stable/2600355?seq=1#metadata_info_tab_contents (accessed 10.11.2020).

39. The dialogue. China-Latin America Finance Database. Available at: https://www.thedialogue.org/map_list/ (accessed 10.11.2020).

40. Witt M. Deglobalization: Theories, predictions, and implications for international business research. Journal of International Business Studies, 2019, April, Vol. 50, N 7, pp. 1053–1077.

41. Salitskij A.I., Salitskaya E.A. SShA—Kitaj: tupiki i paradoksy torgovoj vojny. Vestnik Rossijskoj akademii nauk, M., 2020, № 7, cc. 653-663.

42. Hong, Z. China — U.S. oil rivalry in Africa. The Copenhagen Journal of Asian Studies, 2008, Vol. 26(2), pp. 97—119. Available at: https://doi.org/10.22439/cjas.v26i2.2240 (accessed 10.08.2021).

43. Nsia-Pepra, K. Militarization of U.S. foreign policy in Africa: Strategic gain or backlash? Military Review, 2014, Vol. 94 (1), pp. 50—58.

44. Piresh M., Nasimentu L. Doktrina Monro 2.0 i trekhstoronnie otnosheniya SShA, Kitaya i Latinskoj Ameriki. Vestnik mezhdunarodnykh organizatsij, M., 2020, T. 15, № 3, cc. 202–222.

45. Montoya M., Lemus D., Kaltenecker E. The Geopolitical Factor of Belt and Road Initiative in Latin America: The Cases of Brazil and Mexico. Latin American Journal of Trade Policy, Santiago, 2019, Vol. 2, N 5, pp. 6–21. Available at: https://doi.org/10.5354/0719-9368.2020.56349 (accessed 10.08.2021).

46. Aukus: UK, US and Australia launch pact to counter China. Available at: https://www.bbc.com/news/world-58564837 (accessed 10.10.2021).