Trade booms between Latin America and China
Trade between China and Latin America jumped from US$14.9 billion in 2001 to a record 261.6 billion in 2013, making China the second largest trading partner of the region, the paper said.
China has also become a major destination for exports from Latin America and the top export market for Brazil, Chile and Cuba. Latin America plays the role of a raw material supplier to China, since primary goods accounted for 70% of exports from the region to China in 2008, while a large portion of China's investment in Latin America has been made to ensure the supply of raw material.
According to data from the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), 92% of Chinese investment in the region were related to oil and natural gas, while 10 of the 12 merger deals Chinese companies conducted in the region between 2002 and 2008 were in areas of raw material and energy.
China has also become a major exporter to Latin American countries, even though exports to the region only account for 5% of the total Chinese exports, the paper said. The country is the top exporter to Honduras, El Salvador and Nicaragua, and the second largest to Brazil. ■