Latin American Markets and Sino-Latin American Economic and Trade Cooperation Potential and Environment

Abstract

During the first phase of strategic opportunities, Sino-Latin American economic and trade cooperation developed fast. Latin America has become the fastest growing market for China’s exports and foreign investment since the turn of the century. Due to its growth potential and capacity to receive China’s advantageous products, Latin America will remain China’s major market in the future. However, a comprehensive evaluation demonstrates that Latin American markets generally are nearly “saturated”. Their absolute advantage is dropping and regional features are diverse. “Excessive trade” and “insufficient trade” co-exist in different sectors. Therefore, trade relations between Latin American countries are diverse and can be categorized as investment-oriented, export-oriented, investment-dominated, and export-dominated. During the second phase of strategic opportunities, Latin American markets are still a focus of China’s international economic and trade cooperation, but priorities and methods should be moderately adjusted. While retaining its share in Latin American markets, China will expand its investment. It will overcome specific adverse factors of the Latin American investment environment, gradually adjust the structure of its exports to and investment in Latin America, and achieve economic and trade cooperation through diversified ways.