Record trade between China and Latin America reveals economic challenges for the region
The economic relationship between China and Latin America is undergoing significant changes, according to a report from the Center for Global Development Policy at Boston University. Latin American governments are strengthening ties with China through trade agreements, supply chain investments, and financing projects. Although trade between the two regions has reached record levels, Latin America faces a significant trade deficit with China, posing an economic challenge for the region.
Trade between Latin America and China has reached historic figures, with exports of around $184 billion and imports of approximately $265 billion. This has resulted in a record trade deficit, representing 1.4% of the regional GDP. While countries like Chile, Peru, and Brazil have managed to maintain a trade surplus, Mexico, Colombia, and Argentina are facing a growing deficit.
Over the past 20 years, China has become an increasingly important export market for Latin America and the Caribbean, leading the region to diversify its trading partners. Several Latin American countries are advancing in negotiations for free trade agreements with China, while there is also an increase in Chinese development financing in the region. However, Suriname faces the challenge of a high bilateral debt with China relative to its GDP and is awaiting the start of negotiations for its restructuring. These changes reflect the evolution of economic relations between China and Latin America, aiming to promote trade balance and sustainable development in the region.
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AméricaEconomía. AméricaEconomía.com. (2023, Abril 25). La Relación Económica de China y América latina da un giro hacia lo verde.