CHARTICLE
Products
While Latin America and Caribbean countries export mostly primary products to China, they mostly import higher-end manufacturing
or tech goods from China. Those products compete with local industries and producers in domestic markets and internationally. Will
the competition over these goods choke off the ability of Latin American and Caribbean countries to move up the value chain to more
manufactured, higher-end goods that are key to development?
CHINA–LAC TRADE BALANCE, 2008–2010
(IN US$ MILLIONS)
CHINA–LAC TRADE BALANCE BY SECTOR, 2008–2010
(IN US$ MILLIONS)
EXPORTS
218,493
IMPORTS
226,031
200,255
128,829
77,488
12,176
TRADE
BALANCE
54,727
22,761
3,015 - 7,538 9,161
LAC
South America
Mexico and Central America
Caribbean
- 71,426
PRIMARY PRODUC TS NATURAL-RESOURCE-BASED MANUFAC TURES
- 1,667
- 3,232
9,207
763
- 24,874
- 34,843
MANUFAC TURED PRODUCTS
-143,011
-138, 111
57,817
58,264
35,159
17,074
6,031
LOW-TECH MEDIUM-TECH
33,488
21,310
3,019
43,916
32,658
10,254
1,004
HIGH-TECH
Foreign Direct Investment
Chinese outward FDI has displayed a consistent upward trajectory globally in the past five years. Latin America has received a greater
absolute amount of those investments, though not as much in relative terms. For example, although Chinese FDI flows to Latin America
increased by 97. 3 percent in 2009 from the year before and another 43. 8 percent in 2010, Chinese FDI flows to LAC in 2010 represented only
15 percent of the country’s FDI globally.
CHINA’S OUTWARD FDI FLOWS–LAC
CHINA’S OUTWARD FDI STOCK–LAC
2006: $8.5 BILLION
2006: $19.7 BILLION
2007: $4.9 BILLION
2007: $24.7 BILLION
2008: $3.7 BILLION
2008: $32.2 BILLION
2009: $7.3 BILLION
2009: $30.6 BILLION
2010: $10.5 BILLION
2010: $43.9 BILLION
As a result of this activity, in 2010 China became the third-largest foreign
investor in Latin America, after the U.S. and the Netherlands.
72
Americas Quarterly WINTER 2012
AMERICASQUARTERLY.ORG
