Chinese Investment within Latin America and Caribbean

Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

Abstract

In recent years, a growing number of observers have noted the positive impact that China can have on economic development in Latin America. The high economic growth of China has prompted an increase in their demand for raw materials and energy, contributing to increased exports and improved terms of trade in Argentina, Brazil and other countries in the region. China has expanded in parallel with the volume of foreign investment and seek new allies in Latin America. However, this paper shows that the impact of China is complex and not always positive. China competes with countries of the region in the U.S. market and other developed countries and attracts an increasing amount of foreign investment. Latin America is in danger, moreover, remain anchored in a traditional specialization in primary goods, with few opportunities to acquire new technology and diversify its export basket.

Table of Contents

INTRODUCTION6

Research Objective7

LITERATURE REVIEW7

China economic relations - Latin America before the crisis7

Background7

XXI Century8

Outcomes of increased relations9

Trade9

Investment11

Meaning for Latin America relations with China12

China Relations - Latin America after the crisis14

How the crisis affected both players14

In China14

In Latin America:16

Prospects of relations17

Rating19

DISCUSSION21

China and foreign direct investment23

CONCLUSIONS24

REFERENCES26

Chinese Investment within Latin America and Caribbean

Introduction

Asia is establishing itself as the major center of world economy XXI century to be the world's most dynamic region in terms of growth, participation in international trade, resource financial and technological innovation, and China is the protagonist of this process. That country has become also a key trading partner for America. In recent years the links between China and the region have been increasing at an accelerating rate and this has sparked controversy in several senses among academics, specialists, responsible for developing policies, etc. Has been much discussed, for example, about whether these relations are an opportunity or threat for Latin America and on the magnitude and significance that could potentially have the same in the future. Indeed, this aspect becomes more effective after outbreak of the crisis on the global stage, since the phenomenon has impacted on both players. This article aims to provide a summary of the status of Sino-Latin American relations before the occurrence of the crisis and to advance potential prospects given the previous state and how are affected each of the parties by this crisis.

Research Objective

This paper attempts to describe the motivation for increases in Chinese investment (FDI, trade, foreign aid, etc.) within Latin America and the Caribbean.

Literature Review

China economic relations - Latin America before the crisis

Background

Before the 60's of last century, China's relations with Latin America were almost ...