China’s Hybrid Geoeconomics in South America

Abstract

Since its entry into the WTO in 2001, Chinese expansion in South America has been increasingly evident, mainly in economic and financial terms. However, it is verified that a more active participation has been presenting a duality that generates, concomitantly, benefits and harms for the South American economies. This article seeks to discuss this specific characteristic, presenting the hypothesis of the establishment of a hybrid geoeconomy, defined as the use of economic instruments through a multifarious and asymmetric dualism. Thus, based on an empirical-deductive methodology based on quantitative and qualitative data, the objective is to show that even though the Chinese geoeconomic instruments are a non-imposing strategy, they can result in negative externalities for the South American productive structures and intraregional flows in the long run. This work is divided into three sections, in addition to the present introduction and the final considerations: First, the theoretical-conceptual definition of what is called hybrid geoeconomics will be carried out, based on a discussion of a geopolitical and geoeconomic nature. Subsequently, Chinese economic instruments in South America will be evaluated in quantitative terms, basically using data from trade flows, foreign direct investments and loans, over the period from 2001 to 2016. In the last section, we intend to qualify the debate on China’s hybrid geoeconomics in South American territory, demonstrating its intrinsic characteristics, as well as its objectives, counterparts, protagonists and models. Therefore, it is concluded that the Chinese presence has been changing the geopolitical and geoeconomic map of South America, with positive and negative impacts.