China has become the most significant trade partner to Latin American countries in 2023. This means China has access to vital natural resources worth nearly $218b per year.
Latin American exports to China are mainly soybeans, copper, petroleum, oil, and other raw materials that the country needs to drive its industrial development.
China knows how to play the commodity game well and has overtaken the US and other superpowers in the Latin American market.
Some economists have argued that the United States of America is not after the natural resources in the Latin American region because
the raw materials produced by those countries are not of value to the US.
Latin America can not afford to leave its people in poverty and so will buy into any good deal China offers.
In all, the $218 billion worth of Natural resources of Latin American fuelling the partnership with China are sourced mainly from Brazil, Chile, Peru, Mexico, Argentina, Colombia, Ecuador, Uruguay, and Puerto Rico.
Latin America’s 2022 annual exports to China data available to this portal shows that Brazil exported natural resources worth 108 billion dollars to China in 2022.
The rest are – Chile – $38.4 Billion
Peru – $23.4 Billion
Mexico – $19.0 Billion
Argentina – $7.1 Billion
Colombia $5.6 Billion
Ecuador – $5.4 Billion
Uruguay – $3.6 Billion
Puerto Rico – $1.4 Billion
In 2023, these figures are projected to increase as China leads the BRICS+ nations.
Who is Latin Americas biggest trading partner in 2022?
While China is Latin America’s largest trading partner, China remains South America’s top trading partner.
How much has China invested in Latin America?
In Latin America, Chinese companies invested around $160bn in about 480 transactions between 2000 and 2020, mainly through mergers and acquisitions and, to a lesser extent, greenfield projects and other non-financial direct investments.
What is the relationship between China and Latin America?
Over the years, China has consolidated its position as the dominant trading partner for nations like Chile, Peru, and Brazil, on the back of strong economic complementarity, and is currently negotiating free trade agreements with Uruguay and others while finalizing one with Ecuador.
What are China’s interests in Latin America?
China’s Foreign Investment in South America’s Mining and Energy Sector: Chinese state-owned firms are heavily involved in energy development; PowerChina, for example, has more than fifty ongoing projects across five Latin American countries – including Argentina, Brazil, Bolivia, Chile, and Peru.