In recent years, the Chinese economy has managed to position itself as one of the main trading partners of Latin America and the Caribbean. Bilateral exchange went from US$14 billion in 2000 to nearly US$500 billion in 2022, that is, it multiplied its value 35 times during this period, according to a report by the Economic Commission for Latin America and the Caribbean (ECLAC).
The abrupt growth placed China as the region’s second trading partner, displacing the European Union.
The eastern country absorbed 13% of the exports of this part of the world in 2022 and supplied 22% of its imports. The region has also gained importance in China’s foreign trade, reaching a 7% share of its exports and 8.5% of its imports last year.
The commission highlighted that the value of the exports regional imports to that country until 2022 multiplied by 49 and imports multiplied by 30.
An example of the impact of this trade flow is that “one in every five dollars of added value generated in Latin America and the Caribbean is exported to China in the agriculture, livestock and fishing sectors, and in the case of mining products.”
The most demanded
According to ECLAC, trade between Latin America, the Caribbean and China has a clearly inter-industrial structure. For example, last year, 95% of the region’s exports corresponded to raw Materials and natural resource-based manufacturing, while 88% of China’s shipments were low, medium and high technology manufacturing.
The five products that accounted for the largest share in the region’s shipments were soybeans, copper and iron ore, oil, and copper cathodes, which represented 67% of exports between 2000 and 2022.
As for China, The products that generated the greatest income from the region were parts and accessories for machines automatic machines (US$6,702 million) and automatic data processing machines (US$6,698 million), etc.
More participation
The countries with the largest shipments to China are Brazil, Chile and Peru, which accounted for 82% of South American shipments. 6% came from Mexico, while the Caribbean and Central America had shares of less than 1% (see infographic).
In the case of Peru, China positioned itself as the number one destination for its exports last year, with a share of 30.3%. In 2000 it was in fourth place.
Something similar happened in the imports Peruvians. The Asian economy went from ninth to first place in the last two decades, reaching a share of 27.6%.
According to SunatIn the first half of this year, Peru’s exports to China amounted to US$11,137 million, a year-on-year increase of 10.7%.
Slowdown in regional trade
According to ECLAC, Regional trade in goods and services showed a considerable slowdown during the first half of 2023, with a year-on-year growth in value terms of 0.6% in the case of exports and a decrease of 3.2% in the case of imports.
Exports and imports of goods fell by 1.7% and 4.5%, respectively.
In contrast, exports and imports of services increased 17.0% and 4.1%.
In the case of goods, shipments of mining and oil (-10.3%) and agricultural and livestock products (-4.8%) fell.
Source: Larepublica
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