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onsidering the rapidly growing presence of China in Latin America economy list why this can be a good or bad development for the economic security of the US

onsidering the rapidly growing presence of China in Latin America economy list why this can be a good or bad development for the economic security of the US

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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considering the rapidly growing presence of China in Latin America economy list why this can be a good or bad development for the economic security of the US
United State Textiles, apparel electronics, steel Iron are, soy petroleum, copper, integrated circuits 134 World Regional Geography Visualizing The Rise of China in Latin America DEVELOPMENT $124.5 billion C hina's economic presence in Latin America has grown considerably since the early 2000s, especially in terms of trade. As China's economy has expanded 2012 2000 rapidly, the Chinese government and Chinese investors have looked to Latin America for raw materials, investment opportunities, and CHINA $5.4 billion LAT AMER $7.2 billion most importantly, as a market for its Droducte products. 2000 Trade with China has grown dramatically from 2000 to 2012 igure 3-2-1). China is now the 2012 second most important trade partner for the region, behind the States, and recently has surpassed the European Union. The pattern of China's trade with Latin America reveals much about the region's integration into the global economy. China imports raw materials from some of the region's most important exporters of raw materials-Brazil, Chile, and Peru. China is now the most important destination of exports from these countries. Argentina and Brazil ship large quantities of soy and Peru, Chile, and Brazil ship minerals (copper, tin, iron ore) to China. A good part of the commodity boom that Latin America experienced from $131.0 billion Jinping in 2011. Formal events where South American presidents announce agreements with Chinese cr have become common. of Chile). In exchange for US$500 million CODELCO agreed to sell 55,750 metric tons of copper per year at a fixed price over a 15-year period. China has become an important or expands a company, foreign direct investment occurs. In Latin America and the Caribbean, FDI has surged to $153 billion, with well over half coming from the European Union and the United States. China's annual investment in the region appears to be over $10 billion, but most of that money goes to the Cayman Islands and the British Virgin Islands for banking pur- poses. Actual investments in productive ven- tures amount to less than $1 billion annually, Caribbean. Like in many other places of and those investments are strategically targeted. Most of the investments are in eco- nomic sectors that provide Chinese industry with minerals and other resources they need. Chinese companies have invested in railways, mines, Bolivian natural gas, Venezu- elan and Ecuadoran oil, and Peruvian and Chilean copper mining. The Chinese state company Minmetals signed a deal with the largest copper producer in the world, the Chilean state-owned mining company CODELCO (National Copper Corporation purchaser of primary products, mostly from South American exporters, and a source of competition for countries that produce manufactured goods, mostly in Central America, Mexico, and parts of the 2003 to 2008 is attributed to increased Chinese demand for raw materials. China's exports to the region, which account for less than 10 percent of the region's imports, are nearly all manufactured goods, mostly garments, shoes, electronics, and other inexpensive consumer items, although high-tech exports have increased. These exports pose a threat to Central American countries, Mexico, and the Dominican Republic, whose exports compete directly with Chinese exports. Many of the region's EPZS have suffered due in part to Chinese the world, the region's economic future will increasingly depend on the Chinese economy. Sources: Rhys Jenkins, "China's Global Expansion and Latin America, Journal of Latin American Studes 42 (2010): 809-837. Economic Commission for Latin America and the Caribbean (ECLAC), "Direct Investment by China in Latin America and the Caribbean, in Foreign Direct Investment in Latin Ame and the Caribbean (2010), 99-130 http://www.ek org/publicaciones/xml/0/43290/ChapterD Linvestment_by_China in Latin America and Caribbean.pdf competition. Chinese foreign direct investment (FDI) in the region has not kept pace with its trade growth. When a foreign company or state-owned enterprise purchases, develops,
Transcribed Image Text:United State Textiles, apparel electronics, steel Iron are, soy petroleum, copper, integrated circuits 134 World Regional Geography Visualizing The Rise of China in Latin America DEVELOPMENT $124.5 billion C hina's economic presence in Latin America has grown considerably since the early 2000s, especially in terms of trade. As China's economy has expanded 2012 2000 rapidly, the Chinese government and Chinese investors have looked to Latin America for raw materials, investment opportunities, and CHINA $5.4 billion LAT AMER $7.2 billion most importantly, as a market for its Droducte products. 2000 Trade with China has grown dramatically from 2000 to 2012 igure 3-2-1). China is now the 2012 second most important trade partner for the region, behind the States, and recently has surpassed the European Union. The pattern of China's trade with Latin America reveals much about the region's integration into the global economy. China imports raw materials from some of the region's most important exporters of raw materials-Brazil, Chile, and Peru. China is now the most important destination of exports from these countries. Argentina and Brazil ship large quantities of soy and Peru, Chile, and Brazil ship minerals (copper, tin, iron ore) to China. A good part of the commodity boom that Latin America experienced from $131.0 billion Jinping in 2011. Formal events where South American presidents announce agreements with Chinese cr have become common. of Chile). In exchange for US$500 million CODELCO agreed to sell 55,750 metric tons of copper per year at a fixed price over a 15-year period. China has become an important or expands a company, foreign direct investment occurs. In Latin America and the Caribbean, FDI has surged to $153 billion, with well over half coming from the European Union and the United States. China's annual investment in the region appears to be over $10 billion, but most of that money goes to the Cayman Islands and the British Virgin Islands for banking pur- poses. Actual investments in productive ven- tures amount to less than $1 billion annually, Caribbean. Like in many other places of and those investments are strategically targeted. Most of the investments are in eco- nomic sectors that provide Chinese industry with minerals and other resources they need. Chinese companies have invested in railways, mines, Bolivian natural gas, Venezu- elan and Ecuadoran oil, and Peruvian and Chilean copper mining. The Chinese state company Minmetals signed a deal with the largest copper producer in the world, the Chilean state-owned mining company CODELCO (National Copper Corporation purchaser of primary products, mostly from South American exporters, and a source of competition for countries that produce manufactured goods, mostly in Central America, Mexico, and parts of the 2003 to 2008 is attributed to increased Chinese demand for raw materials. China's exports to the region, which account for less than 10 percent of the region's imports, are nearly all manufactured goods, mostly garments, shoes, electronics, and other inexpensive consumer items, although high-tech exports have increased. These exports pose a threat to Central American countries, Mexico, and the Dominican Republic, whose exports compete directly with Chinese exports. Many of the region's EPZS have suffered due in part to Chinese the world, the region's economic future will increasingly depend on the Chinese economy. Sources: Rhys Jenkins, "China's Global Expansion and Latin America, Journal of Latin American Studes 42 (2010): 809-837. Economic Commission for Latin America and the Caribbean (ECLAC), "Direct Investment by China in Latin America and the Caribbean, in Foreign Direct Investment in Latin Ame and the Caribbean (2010), 99-130 http://www.ek org/publicaciones/xml/0/43290/ChapterD Linvestment_by_China in Latin America and Caribbean.pdf competition. Chinese foreign direct investment (FDI) in the region has not kept pace with its trade growth. When a foreign company or state-owned enterprise purchases, develops,
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