China’s trade with Latin America has multiplied rapidly, reaching $500 billion in 2022 from $14 billion in 2000.
This growth makes China a top trading partner in the region, as reported by the Economic Commission for Latin America and the Caribbean (ECLAC).
ECLAC highlights that Latin America’s exports to China have increased by 49 times, and imports have risen by 30 times.
Consequently, one-fifth of the region’s value-added output in sectors like agriculture and mining now goes to China.
The trade’s influence extends beyond economics to geopolitical significance. The U.S. monitors these developments closely.
U.S. Treasury Secretary Janet Yellen has recently urged for closer U.S.-Latin America ties to strengthen supply chains and reduce reliance on China.
Yellen promotes ‘Friend-shoring’ to explore new avenues in renewable energy and technology. Such steps aim to bolster partnerships with Latin American countries.
Colombian President Gustavo Petro’s visit to China illustrates the deepening ties. His discussions with President Xi Jinping focused on expanding bilateral cooperation.
Following this visit, talks have started about Colombia joining China’s New Silk Road initiative. This move signals a deeper partnership.
Crucial Export Market
China has become a crucial export market for countries like Brazil, Chile, and Peru. It accounts for a significant portion of their goods exports.
However, in Central America, apart from Panama, China’s role remains less dominant.
ECLAC’s report shows Latin America’s forward linkages with China are stronger than backward ones. This pattern reveals the region’s role in Chinese exports.
The diversity of Latin American exports to China is still limited.
Five primary products make up the majority of these exports. ECLAC urges for a broader range of exports to China to change this pattern.
These products are soybeans, copper and iron ore, petroleum, and copper cathodes.
Investments from China in sectors like lithium cathode and electric vehicles production are emerging.
These sectors could lead to new regional production chains and strengthen intra-Latin trade.
More: Brazil news in English, every day from The Rio Times.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
+1.59%
180,230.99
+1.59%
65,314.78
-0.18%
11,315.26
-1.14%
3,070,880
+1.22%
2,467.03
+1.73%
59,450.29
+0.04%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 180,230.99 | +1.59% | +21.85% | 177,418.78 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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