Military Review

China and the USA in Latin America: who wins? ("Infolatam", Spain)

China and the USA in Latin America: who wins? ("Infolatam", Spain)Latin America was not the focus of attention at the US-China Summit held last week in California. Despite the fact that PRC President Xi Jinping, US President Barack Obama and US Vice President Joe Biden, toured almost the same Latin American countries last month, it should be noted that this region is not among their priority topics. There is no particular tension associated with Latin America between the United States and China. There is also no evidence that the United States is particularly worried about China’s dramatically increased presence or that the two countries view each other as enemies or rivals fighting for power, resources or allies in the region.

Xi Jinping explained this lack of conflict of interest when he said in Mexico that "the more Latin America develops, the better for China." In their articles published in the Miami Herald, Obama and Biden reiterated similar theses, namely that the US benefits greatly from thriving Latin America. This explains why the United States and China have a positive attitude towards the trade agreements of each country in Latin America.

Both in Washington and in the region as a whole, there is a consensus that Chinese trade, and more recently investments and loans, have played a key role in the accelerated economic growth of Latin America over the past decade. According to the World Bank, the International Monetary Fund and virtually all Wall Street analysts, Chinese imports contributed significantly to the region’s economic growth. A significant or prolonged reduction in Chinese purchases would deal a serious blow, the consequences of which would have an immediate effect.

China’s trade with Latin American countries has grown from 15 billions in 2000 to about 200 billions in the past year. It should be recognized that the position of Mexico and a number of other countries weakened after China strengthened in the markets for their products, in particular, in the USA and Latin America. But this is a consequence of the industrial expansion of China and world trade, and not its increased activity in Latin America. And Mexico as a result of the losses incurred has become more competitive.

Equally, China is well aware of how much the prosperity of Latin America depends on access to markets, investments and US loans. That is why 11 of Latin American countries 18 signed free trade agreements with the United States. (China has signed three such agreements with Chile, Peru and Costa Rica. All these countries are US partners). China’s leaders know that any weakening of the US role in Latin America will lead to a decline in Chinese exports to the region, making it much less attractive for new Chinese investment.

It is not necessary to deny that the United States and China are competing for markets and opportunities to invest in Latin America, but they are so different ways that the competition between them is not much different from competition with Europe or Japan.

Let's face it. The economic importance of the United States in the region has declined, while the presence of China has strengthened long ago. Twelve years ago, about 55% Latin American imports came from the United States. Over the past year, this figure has decreased to one third.

The volume of trade operations of China with Brazil, Chile and Peru exceeded those of the United States. China ranks second in trade with Colombia and Argentina. But although, starting from 2000, the US presence in the Latin American market decreased by 40%, the absolute value of US exports to the region doubled, and investments grew much faster than exports to other countries of the world. The fact is obvious that the large purchases of commodities by China in Latin America contribute to the growth of its purchasing power, turning this continent into a more substantial consumer of American goods.

As a result, Washington will continue to contribute in every way to Chinese expansion in Latin America, and China, for its part, will welcome the significant influence of the United States on this continent.

The US economy not only did not suffer from the active trade activities of China in Latin America, but rather the opposite: it gained significantly as a result of Chinese investment and China’s trade with the countries of this continent. Note that China focused mainly on economic issues, showing little interest in political and security issues.

At first glance, Xi Jinping’s visit to Latin America was purely economic in nature, although some observers have suggested that visits to Mexico, Costa Rica and Trinidad and Tobago, the three US neighbors and their closest trading partners, in essence, represented an invasion of zone of American interests and should be perceived as a political challenge to Washington. Perhaps even as a sign of China’s concern about the Obama government’s decision to increase American influence in Asia. Maybe. But the three countries mentioned above are also important trade and economic partners of China. If China decides to finance a multi-million dollar project to build a new canal through Nicaragua, I think that US banks and companies will hurry to take part in it, because it promises a clear profit.

And finally, Latin America managed to establish mutually beneficial relations with China, the United States, and (with some exceptions) directly on the continent itself. And this situation will last for some time.

This is one of the reasons why during their meeting in California, Xi Jinping and Obama did not address the issues of the continent.
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  1. experienced
    experienced 10 August 2013 15: 38
    China at the expense of trade is unrivaled, but the Americans will tear up the ass, but the Chinese will not be allowed into their neighbors. They may shout about EuroPRO security for Russia, but they understand that strengthening China in LA is for them, like a dagger in the underbelly hi
    The Chinese do not suffer from misanthropy and do not invest money just like that, they buy up sectors of the economy that are of interest to them and bring in Chinese workers, this can be observed all over the world. LA has cheap land, and China has a lot of candy wrappers to invest. We are waiting ... True, the Americans have adapted in the LA revolution to arrange regimes, how to change gloves ... We will wait and see
    1. Apollo
      Apollo 10 August 2013 15: 46
      China is slowly but surely approaching the United States, seriously and for a long time decided to gain a foothold in the countries of Latin America.
      The article does not say a word about Russia ...... It is a pity. There was a time when the USSR was present everywhere and not only in Latin America. Maybe the leaders of Russia should not limit themselves to only Venezuela and Cuba, but also seek to strengthen their positions in other countries Latin America. Good for this all the conditions are there.
      1. StolzSS
        StolzSS 10 August 2013 16: 15
        Maybe so, but we need to correctly distribute our efforts and resources on that continent ...
  2. 12345
    12345 10 August 2013 16: 34
    China and the USA in Latin America: who wins? China and the USA in Latin America: who wins?

    I wonder what will be "kirdyk USA" in Chinese?

    And, here, the fact that he will happen, doubt, for some reason, does not cause.
    1. Yura
      Yura 10 August 2013 22: 06
      Quote: 12345
      and what is "kirdyk USA" in Chinese?

      Duc "kirdyk" he and Africa kirdyk, and in Chinese translated into Russian it sounds something like "kirdyk crept up not noticeable", which in translation back into Chinese sounds something like "quiet sap along the ridge with a shovel." laughing smile
      1. ia-ai00
        ia-ai00 10 August 2013 23: 10
        To you +!
        Here you read such comments, and the mood rises, which manages to fall below the baseboard from events in the WORLD!
  3. kanevsvv
    kanevsvv 10 August 2013 16: 34
    Quote: seasoned
    The Chinese do not suffer from misanthropy and do not invest money just like that, they buy up sectors of the economy that are interesting to them and import Chinese workers, this can be observed all over the world.

    Exactly. I fly on business trips abroad and often see Chinese shift workers going to work at some "Bosnian" plant.
  4. MG42
    MG42 10 August 2013 16: 47
    The US economy not only did not suffer from China's active trading activity in Latin America, but rather the opposite: it significantly gained as a result of Chinese investment and trade between China and the countries of this continent.

    China needs resources for its economy, at the same time, it needs new markets, although this is a traditional zone of US influence.
    This will be until the moment when the military conflict of China with any of the US allies breaks out ..
  5. knn54
    knn54 10 August 2013 17: 03
    The countries of the region prefer to have a partner, even a “senior” one, rather than a host who practices (so far!) The Condor plan.
  6. individual
    individual 10 August 2013 20: 08
    China is spreading the US economy on the Latin territory of their lost influence.
  7. Grbear
    Grbear 10 August 2013 20: 48
    China, with a purely oriental "flowing water" technique, is being introduced into LA. The coincidence of interests of China and the United States is temporary. China cannot offer confrontation to states for a number of reasons.
    • Lack of the ability to defend their positions, both in the military (no bases, great remoteness), and politically (the author mentioned the revolution not in vain).
    • China needs to convert paper dollars into real raw materials, therefore, it will not be stingy.
    • "Chinese" dollars raise the standard of living of Latinos, which means that they can buy more American goods (the US economy cannot completely switch to selling candy wrappers, their own must do something too). And China does not "squeeze" here.
    • China will invest in the LA economy because "well-fed" countries are not prone to revolutions, and it takes time for a diaspora to take root. And not "neighborhoods", but offices.

    The game is risky enough for both sides. And the "panda" is growing, and the "bird" is not weak yet.
  8. Essenger
    10 August 2013 21: 11
    I waited 10 days for the publication of this article.
  9. ia-ai00
    ia-ai00 10 August 2013 23: 27
    There are almost 1,5 billion Chinese on Earth, so they are "mastering" new territories ...
    In Russia - Siberia in ... twenty years you look, and speaks Chinese ...
    And "Muscovites" will wear hijabs ...
    1. ivshubarin
      ivshubarin 11 August 2013 13: 31
      There are not so many Chinese here. And they have not yet mastered their northern territories.
  10. michajlo
    michajlo 11 August 2013 03: 07
    Quote: MG42
    The US economy not only did not suffer from China's active trading activity in Latin America, but rather the opposite: it significantly gained as a result of Chinese investment and trade between China and the countries of this continent.

    China needs resources for its economy, at the same time, it needs new markets, although this is a traditional zone of US influence.
    This will be until the moment when the military conflict of China with any of the US allies breaks out ..

    Good evening everyone! Liked the remark. good
  11. The comment was deleted.
  12. michajlo
    michajlo 11 August 2013 03: 32
    I apologize for the repetition. This is "freezing" of the connection (DSL) with your server, after Restart Mozilla - I discovered that I have 2 Notes instead of 1. sad
  13. The comment was deleted.
  14. KazaK Bo
    KazaK Bo 11 August 2013 08: 19
    The other day there was an article about the wave of bankruptcy of US cities. The current article is a continuation of the conclusions that were voiced in many comments - the loss of US economic dominance in the world affects the profits received by the AMers (they received up to 40% of their GDP from the "economic" colonies).
    And China, willingly or unwillingly, by purchasing raw materials in LA, essentially sponsors the American economy. But this cannot last long. If you look at the structure of exports and imports of the LA countries, it is not difficult to see that China has begun to intercept export supplies from the United States for "consumer goods" ... and America - in the field of science-intensive and labor-intensive complex technology. With an increase in the level of technology development in CHINA, the latter will squeeze export to LA in this sector too, Then aMeram and "kirdyk" will loom on the horizon ... because from Africa they are not only actively, but also successfully pressed by Chinese producers of "consumer goods" (there is no it also requires massively high-tech and labor-intensive complex machinery and equipment) ... and Asia is China's domain by default ...
    So, despite the neutral conclusions of this article, soon the aMers will have to go to the DPRK ... to adopt the experience of self-reliance in the field of the economy ... and, like the bearers of the "Juche" ideas, tighten their belts tighter.
    1. Egen
      Egen 12 August 2013 05: 52
      Duck, dear Boris, you write everything correctly, but the conclusions are not completely consistent :) That's right, most of the Chinese factories are owned by the Americans and they have a lot of Chinese exports from the same. It really goes into the pocket of the owners, not the workers, but for them, the owners, it’s on the drum. Maybe they will unfasten taxes on unemployment benefits :)
      Yes, I agree
      Quote: KazaK Bo
      With the growth of technology development in CHINA, the latter will also squeeze in this export sector in LA
      , but this is also the "hand of amers". The Chinese, of course, are smart, I know one of their academicians, but the Americans have the accumulated experience of development, they will instantly come up with what they like and, most importantly, implement it. And the Chinese man is fine, but he thinks alone, but breaks his head how to implement it. So the Chinese amers are not allowed to access the secret advanced technologies, but until they figure it out themselves, they will invent something new. It is clear that sooner or later the two lines will intersect. But then amers all who need to just buy up, they are not fools. Therefore, it turns out the same eggs but in profile: the rich get richer in any possible way - if it does not work out for the American people (because he got drunk), then in Chinese. And what kind of people they are - white yellow or black - don't care, money is green :)
  15. The comment was deleted.
  16. 094711601
    094711601 11 August 2013 11: 51
    Oh, this KIRDYK would soon come!