What Happens When Economic Giants Move: China-US-Latin America

• 03.04.2015, 17:34
•  America,  Asia,  World

For a long time China and U.S. have been world strongest economic partners, but recently China has started making friends right under America’s nose.

Latin America is China’s latest business partner. Last year Chinese banks increased investments in Latin America by 71%, and there are plans by economic giant China to multiply its trade capacity with the Central and South American region for the next years.

On the other hand U.S. power in the region is weakening, as U.S. cash is fleeing elsewhere over the world then Latin America. Vice president of American Foreign Policy Council Ilan Berman expressed his view about China and Latin America’s deal as having political and strategic undertones, which is covered right now under economic relationship and partnership, CNN reports.

China's volumes of trade with Brazil, Argentina, Peru and Venezuela are more than those of US. The economic giant needs all of the Latin America’s oil and soybeans, at the same time Latin countries are in need of cash, which is not a big deal for China to provide. The situation is win-win for both of them.

It is known that Latin American countries formed an alliance in 2010 called Community of Latin American and Caribbean States (CELAC), which does not include Canada and U.S. Two months ago the alliance had a meeting in Beijing, instead of Washington. This shows that there is a  stronger cooperation with China rather than with U.S.

Probably, just at this moment the economic growth of Latin America is not at its highest point, but on long term perspective the cooperation with China can bring great benefits in terms of trading and investment. China's move from the U.S. to Latin America is really something very interesting. The results will be very positive especially for Latin countries as they are  economically straggling. Moreover there is a positive ground for it as what China suggests is in accordance with Latin America's demand.