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THE IMPACT OF CHINA ON LATIN AMERICA - Coggle Diagram
THE IMPACT OF CHINA ON LATIN AMERICA
China
is the largest economy in th world
Imports
from Latin America
increased sevenfold while its exports to the region
is highly competitive
the massive growth of Chinese production of labor-intensive manufacture
is economically much more significant for Latin America and the Caribean
Mexico
exports with Mexico, the most
important
ranked as 22nd with less than 1% of
China’s total exports.
TOP 5 EXPORTS
Brazil
Chile
Argentina
Cuba
Peru
Important contribution
to the growth of total exports
since 2000 in
Costa Rica
Cuba
Direct impacts of China on Latin America
demand for primary commodities has
been a boon to the region
China’s share in total imports by Latin
America and the Caribbean
increased from
1.8% in 1995 to around 5.5%
Imports
85% e non-resource based manufactures
90% manufactured goods
Exports to Latin America
is of intermediate goods
complementary relationship with access to cheap Chinese
Impact
was felt mainly by other exporting
countries,
domestic producers have started to be affected
Investment
US$ 2 billion Brazil
$41 million Mexico
INDIRECT IMPACTS
Central American countries are also likely to
have been negatively affected
Chinese competition is confined to a relatively narrow range of laborintensive or low-tech
The share of high technology products in Chinese exports has increased
Chinese competition affects more countries and more sectors
impact on world
prices is the effect on the goods which it exports
Consequences
Growht impacts
face serious balance of payments
constraints
a critical factor determining
the impact of China
Bilateral trade balances only present a partial
of the overall impact of China on Latin
American and Caribbean trade
the positive balances will be
smaller and the deficits larger
Poverty impacts
Shocks
the enterprise channel
the distribution channel
the government channel
Agricultural exports
have more potential for
creating employment
increasing peasant incomes
Manufacturing
has been suggested that the growth of China
as a major
source of low wage labor may
direct participation in
ownership or through royalties and taxes
played an important part in the recent growth
of primary product exports