Beyond Minerals: China-Latin American Trans-Pacific Supply Chain

Produced by: 
BBVA Research
Available from: 
June 2015
Paper author(s): 
Alicia Garcia-Herrero
K.C. Fung
Jesus Seade
Topic: 
Globalization - Trade
Year: 
2015

In this paper, we highlight three characteristics of China-Latin American economic relations. China-Latin American economic relationships are asymmetric, comparative-advantage driven and motivated by both political and economic considerations. There are several co-operative measures that China and Latin America can focus on. China can be encouraged to invest in not only mining in Latin America, but also in infrastructure and in manufacturing facilities. China and Latin America can deepen their Trans-Pacific production network. Utilizing the advantages of being close to and in the same time zone as the U.S. market, this pan China-Latin America supply chain can be a potent supplier and exporter to the United States.

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