China Latin America Caribbean Trade Relationship 2012

China and Latin America and the Caribbean
Building a strategic economic and trade relationship
Osvaldo Rosales Mikio Kuwayama

China and Latin America and the Caribbean
Building a strategic economic and trade relationship
Osvaldo Rosales Mikio Kuwayama

Economic Commission for Latin America and the Caribbean (ECLAC) Santiago, April 2012

Libros de la CEPAL

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Alicia BárcenaExecutive Secretary Antonio Prado Deputy Executive Secretary Osvaldo Rosales Chief of the Division of International Trade and Integration Ricardo Pérez Chief of the Documents and Publications Division

This document was prepared by Osvaldo Rosales and Mikio Kuwayama, Chief and Economic Affairs Officer, respectively, of the Division of International Trade and Integration of the EconomicCommission for Latin America and the Caribbean (ECLAC). Statistical support was provided by José Durán Lima and Mariano Alvarez, of the same Division. The views expressed in this document are those of the authors and do not necessarily reflect the views of the Organization.

Cover design: José Manuel Vélez United Nations publication ISBN: 978-92-1-021082-9 • E-ISBN: 978-92-1-055362-9LC/G.2519-P Sales No. E.12.II.G.12 Copyright © United Nations, April 2012. All rights reserved Printed at United Nations, Santiago, Chile • 2011-914 Applications for the right to reproduce this work are welcomed and should be sent to the Secretary of the Publications Board, United Nations Headquarters, New York, N.Y. 10017, United States. Member States and the governmental institutions mayreproduce this work without prior authorization, but are requested to mention the source and inform the United Nations of such reproduction.

China and Latin America and the Caribbean: Building a strategic economic...

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Contents

Foreword ............................................................................................................. 11 Chapter I The principal characteristicsand the economic and trading performance of China .................................................................. 15 A. China is the main engine of global growth ................................ 15 B. The key role of China in the global financial market ................ 22 C. Steady growth in Chinese inward and outward foreign direct investment.............................................................. 27 D. China is the main driver of world trade ..................................... 33 1. Trade in goods ........................................................................... 33 2. Commercial services ................................................................ 36 3. Foreign-owned firms in China’s external trade ................... 38 E. China is an increasinglyimportant producer and consumer of the commodities supplied by a number of Latin American countries .......................................... 40 F. China, and to a lesser extent India, play a major role in the global manufacturing sector ...................................... 46 G. China’s weight in services is also increasing ............................. 51 H. China is progressingrapidly in the field of research and development ....................................................... 55 I. There is great potential for energy cooperation with China ....................................................................................... 59

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ECLAC

Chapter II China’s trade links with Latin America and the Caribbean: towards a strategic relationship....................................................................... 65 A. Introduction: in the past decade, Latin America and the Caribbean has been China’s most dynamic trading partner ..................................................... 65 B. The strong demand for commodities from the Asia and Pacific region has helped to improve the terms of trade, especially for the countries of South America...