China’s growing presence in Latin America is among the most visible trends in the Western Hemisphere. Through trade and investment, China has reshaped the economies of several countries in the region, raising concerns both in Latin America and the United States. This study examines Chinese economic involvement in Latin America, focusing on trade, direct investment, and finance, and making five arguments. First, due to weaker growth in both China and Latin America, China’s regional economic expansion will slow down in coming years. Second, China is keen to forge closer ties with Latin America, but the idea that it has become a major target of Chinese expansionism is delusional. Third, Beijing talks a lot about South-South cooperation, but this has been more principle than actual practice. China no longer belongs to the periphery of the global system; it has become part of a semi-periphery. Fourth, some argue that emerging economic ties are detrimental to Latin America. In fact, the rise of China presents both challenges and opportunities for the region’s development. Fifth, there is a false fear that China poses a looming threat to American interests in Latin America. There is little evidence that Beijing seeks to upend U.S. regional dominance.
Macroeconomic Deeds, Not Reform Words: The Determinants of Foreign Direct Investment in Latin America
