How are economic relations between China and Latin America evolving?
At FK Economics, we examine the main economic flows between China and Latin American economies, with a focus on two key dimensions: Foreign Direct Investment (FDI) and International Trade (imports and exports).
Key insights on China–Latin America economic relations:
– China’s FDI has more than doubled since 2010, reflecting robust growth over the past 15 years.
– Despite this expansion, South America receives only about 1%–2% of China’s total outward FDI, indicating limited regional allocation.
– Brazil has traditionally been China’s main investment destination in Latin America, although FDI levels have declined since 2019.
– Argentina saw a sharp rise in Chinese investment starting in 2018, overtaking Brazil by 2020 as the leading recipient of Chinese FDI in the region.
– In trade, Brazil remains China’s top Latin American partner, though export volumes to Brazil and Mexico are relatively similar, showing a balanced commercial relationship.
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Economic Flows Dashboard China to Latin America FDI, exports and imports