China in the World
China in South and Central America
China has become a prominent trading partner and financier for Latin America and the Caribbean countries
IHLO, August 2013
In 1990s, China did not have a strong investment tide with Latin America and Caribbean. Yet trade between China and the region has gradually increased in the last decade. In 2000, the region’s exports to China accounted for only 1.1% of its total exports while the imports from China was less than 2% compared to its total imports in that year (see figure 1). As the Going-out Strategy of Chinese companies has taken into effect since it was introduced in 1999, the trade between China and Latin America and Caribbean has gradually increased between 2006 and 2010. China has become the third major trading partner after the United States and European Union in the region.
China is also the fourth major source of inward FDI in the Latin American and Caribbean region. In 2010, Chinese investment in the region was more than $15 billion which accounted for 9% of the region’s FDI.
Since 2005, China has lent more than $75 billion in loans to Latin American countries. China’s loan commitments marked its peak in 2010 to stand at $37 billion, which was more than those of the World Bank, Inter-American Development Bank, and the United-States Export-Import Bank combined for that year.
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