Chinese Trade in Latin America Compared to the European Union and the United States: The Case of Technology-Intensive Exports

Abstract

Using trade data submitted by United Nations member states from 1995 to 2013, this article contributes to understanding China's trade with Latin America. By employing and building on the TECH score methodology, this project highlights China's growing economic connectivity with nine large and important Latin American economies. The analysis conducted here shows that compared with exports originating from other, more traditional foreign investors (i.e., the United States and the European Union member states), Chinese exports to these Latin American countries—although growing in sophistication over time—are relatively less technologically sophisticated during the study period. This work clarifies that in spite of these Latin American economies being highly complementary (for their natural resources and consumer markets) to China's manufacturing-intensive economy and despite the rapid growth in bilateral and biregional trade, China's displacement of traditional foreign actors, in terms of its technology-intensive exports to the region, is not supported by the data to date.