Empirical analysis of export trade patterns from China to Latin America

Abstract

In recent years, the relations between China and Latin America have experienced adramatic deepening. Latin America is expected to become the last part of the magnificent "The Belt andRoad" development program, in order to achieve a new historic opportunity for commercial cooperationbetween China and Latin America. In this case, it is necessary to carry out a deeper analysis of theexport potential between the two parties. First, from a historical perspective, this work analysesthe development and current situation of trade between China and Latin America, the structure ofcommodities of export from China to Latin America and the distribution of the country through the UNstatistical database. Then analyses the competitiveness and trade complementarity between China andthe main Latin American countries using the formula. According to the results, since the 20th centurythe import and export trade between China and Latin America has grown vigorously, but the growthrate has slowed and has even declined in recent years. Between China and Latin American countriesthere is a strong degree of complementarity in trade, but this degree has shown a downward trend.Among Latin American countries, Mexico is the country that dominates the highest competitiveness andthe least narrow trade link with China; While Venezuela, Peru and Chile are the countries that maintainthe greatest complementarity and the strongest trade link with China. Finally, this work proposes welltargetedpolicy recommendations.