China’s Interest in Latin America

1 October, 2012

Beck, Tanner C.Heckmann, Brian E.Mellon, David A.Thomas, Brian E.

Works Cited

• Aquino, Carlos, “China’s Influence Grows in US’ ‘backyard’,” in ChinaDaily USA. (June 25, 2012). http://usa.chinadaily.com.cn/opinion/2012-06/25/content_15520252.htm.

• Backer, Larry Cata, “Thoughts on the US-China Economic & Security Review Commission Report: China in Latin America,” in Law at the End of the Day. (March 5, 2012). http://lcbackerblog.blogspot.com/2012/03/katherine-koleski-for-us-china-economic.html.

• Branigan, Tania, “China Goes on the Rails to Rival Panama Canal,” in The Guardian (February 14, 2011). http://www.guardian.co.uk/world/2011/feb/14/china-rail-rival-panama-canal.

• Ferchen, Matthew, “China’s Latin American Interests,” in Carnegie Endowment for International Peace. Washington, DC (April 6, 2012). http://carnegieendowment.org/2012/04/06/china-s-latin-american-interests/a7av.

• Dowd, Alan W., “Crisis in the America’s: Countering China’s Reach in Latin America,” in American Security Council Foundation. Washington, DC (2012). http://www.ascfusa.org/content_pages/view/crisisinamericas.

• Ellis, R. Evan, “Chinese Soft Power in Latin America: A Case Study,” in NDU Press. Washington, DC (2010). http://www.ndu.edu/press/chinese-soft-power-latin-america.html.

• Lafargue, Francois, “China’s Presence in Latin America,” in China Perspectives. (2006). http://chinaperspectives.revues.org/3053.

• Lewis, Leo, ”China Eyes Panama Canal Expansion,” in The Australian: Business: With the Wall Street Journal. (September 26, 2012). http://www.theaustralian.com.au/business/world/china-eyes-panama-canal-expansion/story-e6frg90o-1225827691243.

Increasing Chinese Interest

• Chinese investment in Latin America increased 7 fold from 2003 to 2008

Trade Between Latin America & China

• exports from China to Latin America increased 3 fold from 2000 to 2005• imports to China from Latin America increased 5 fold from 2000 to 2005

Top 5 Recipient Countries of Chinese Exports in Latin America

• Mexico, Brazil, Panama, Chile and Argentina account for three-fourths of Chinese export recipients (2004)

China’s Top 5 Suppliers

• Brazil, Chile, Argentina, Mexico and Peru account for 89% of Chinese imports (2004)

Agricultural Resources• diminished farm production in China, due to…

• industrialization• poor irrigation

Agricultural Resources• China as the world’s leading consumer of soya

• half of China’s consumption is imported» from the United States, Brazil, and Argentina

Mining Resources• Latin America

• 45% of the world’s copper reserves• 25% of the world’s silver reserves• 33% of the world’s pewter reserves

» from the United States, Brazil, and Argentina

• Chile & Peru• Produce 44% of the world’s copper

output– China biggest consumer, acquiring half

of Chilean-Peruvian copper exports

Mining Resources• Cuba

• third largest producer of nickel in the world

• China ranks third– as Cuba’s main trading partner

Mining Resources• Brazil

• third largest producer of iron ore• China ranks third

– as Brazil’s main trading partner of iron ore

Oil Resources

• China became the world’s second biggest consumer of oil (2002)– diversified its market to include Africa, Central Asia, and

Latin America

Oil Resources

• Venezuelan President Hugo Chavez & Chinese President Hu Jintao

(2004)

Oil Resources

• Venezuela’s oil exports to China after 2004– 12,300 bpd (2004)– 70,000 bpd (2005)– 160,000 bpd (2006)

• Brazil second highest oil reserves in South America, followed by Ecuador

Oil Resources• Panama Canal remains narrow for oil tankers

to pass through it

Panama Canal

• $5.25 Billion (U.S.)• to widen & deepen the Panama Canal in order to

facilitate trade across the Atlantic to the Pacific• Facilitates China’s growing consumption of oil from

Venezuela & raw materials from Brazil

Panama Canal – Alternative

• railway through Columbia

• Chinese initiative• circumvents

Panama Canal• area

dominated by rebels and militias

Review

• Due to China’s rapid industrialization, the country has an increased need for:

• ____________________• ____________________• ____________________

Review

• What main countries facilitate this growing consumption?

• ____________________• ____________________• ____________________• ____________________• ____________________

Review

• How is China’s consumption need for Latin American resources manifested?

• __________________________________________