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The book The Dragon in the Room: China and the Future of Latin America found that 92% manufacturing exports from Latin American were in sectors where China was increasing its market share while Latin America was decreasing its share, or where both China and Latin America where increasing their shares but Latin America at a slower rate. [10]
China's economic influence in Latin America increased substantially in the 21st century. Imports from China valued $8.3 billion in 2000, but by 2022 its value was $450 billion and had grown to be the largest trading partner of South America, as well as the second-largest for the broader Latin America. [233]
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With China's influence in Latin America during this early period, countries a part of the Mercosur organization also experienced changes within their trade evaluations. [11] The rate of soybean production of five South American countries a part of Mercosur witnessed a 221.4% growth from 1995 to 2010.
China is expanding economic ties into Latin America, and Brazil falls into that category. China is investing a Brazilian electric transmission line from the Amazon, as well as importing Brazilian planes and beef. [40] China and Brazil, both members of BRICS, are competing for influence in Latin America.
It was the first visit by a Chinese head of government in Latin America. In 1971, Mexico decided to break formal diplomatic relations with the Republic of China after the successful passing of Resolution 2758 at the United Nations recognizing the People's Republic of China as the only legitimate representative of China to the United Nations.
The pragmatic U-turn by a natural U.S. ally underscores a challenge for President Donald Trump in resource-rich South America, where booming commerce in recent years has boosted China's influence.
In 1965 was re-established as the Commercial Office of China Council for the Promotion of International Trade. [1] Since the establishment of the diplomatic relations in 1970, bilateral economic relations have developed considerably. Chile became China's third largest Latin American trading partner behind Brazil and Mexico.