China’s Growth And Its Impact On Latin America

Leonardo Gonzalez Dellan is an expert trader recognized the international market. In a recent interview, he sent a warning that Latin America is showing intentions to trade with China and is welcome with the idea of trading with China since the region needs it but Latin America is firm in its belief that it will not allow China to own the region in any way.

Compared to the trading relations between the two in 2000, the volume of trades from China to Latin America and vice-versa has already increased by 22 times the original volume.

In fact, the Belt Road Initiative which originally covers only all countries in Eurasia, the Maritime Silk Road which is by the ocean and the Silk Road Economic Belt which governs the land, is now welcoming Latin America with two open arms. This is why there is now a trans-Pacific internet cable made of fibre optic that is currently running from China going to Chile. It spans a total of 19,000 kilometres.

Starting in 2015 and until next year, China has already put in place plans to invest worth $250 billion to Latin America and the trade between the two countries will balloon to $500 billion. Prior to the trade war between the United States and China, the trades between the two regions have been going well.

From the year 2010 until 2014, China has already funneled around $104 billion as investment in Latin America. It is currently the largest trading partner of Latin American nations such as Peru, Argentina, Chile and Brazil. In terms of longevity, Africa has seen firsthand the impact of China’s trade and investment in a country. Arthur Mutambara, a writer and politician from Zimbabwe, said that it is important to have a strong relationship with China because of the investment it brings but nations should also watch out for re-globalisation.

According to Leonardo Gonzalez Dellan, Latin America should heed the warning sent by the African by being proactive rather than reactive, by engaging China as a region and not as a single country, by welcoming the era of the internet and by embracing technology as part of Latin America.

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