Chinese foreign direct investments in Latin America and their influence on Chinese-Brazilian economic relations
Keywords:foreign direct investments, China, Latin America, international economic relations
For many decades Chinese foreign direct investments in Latin America were not a subject of academic research or political debate. However, thanks to China?s fast economic growth, huge saving rate and national reserves, the country plays a more and more important role not only in global trade, being the world?s biggest exporter, but also in international investment scene by increasing the number and volume of its overseas businesses. Chinese FDIs in Latin America, although not as controversial as those in Africa, have registered a steady growth and seem to be both a chance and a threat for Latin American states. The scale and structure of FDI still remain relatively poor but the situation in the last years, especially 2009-2010 shows a significant change. Huge amount of Chinese FDI go to Brazil, which is also the recipient of the biggest Chinese single overseas business project (Porto do Aço). As far as Brazilian-Chinese bilateral economic relations are concerned, the complementarity of countries? economies gives hope of beneficial cooperation, but at the same time poses a threat on Brazil of being vulnerable to externalities and losing manufacturing advantage in exports. Moreover, Chinese presence in Latin America means not only counterbalance to the influence of the USA but also undermines Brazilian position in the region. Methodology: the author combines quantitative and qualitative data analysis. Data used for the purpose of the article come mainly from UNCTAD statistics on-line, statistics of Chinese Ministry of Commerce, CIA Factbook. Moreover, the author makes use of desk research and literature review.
Asian Pacific Foundation of Canada (2009), China Goes Global 2009: Survey of Outward Direct Investment Intention of Chinese Companies, September.
Benderson M. (2008), An assessment of Chinese outward foreign investments as an innovation strategy.
Binsen Z. (2003), China Should Abandon the Foreign Policy of Taoguang Yanghui, Business Week.
CIA-The World Factbook (2009), www.cia.gov/library/publications/the-world-factbook
Cohen R.B. et al. (eds, 1979), The Multinational Corporation: A Radical Approach. Papers by Stephen Herbert Hymer, Cambridge University Press. Cambridge, Mass.
Dunning J.H., (1993), Multinational enterprises and the global economy, Wokingham.
Dunning J.H., Narula R. (1996), The investment development path revised: some emerging issues, Foreign Direct Investment and Governments, Routledge, London.
Dunning J.D. (1998), Explaining changing patterns of international production, Oxford Bulletin of Economics and Statistics, 41/4.
Gallagner K., Porzecanski R. (2010), Dragon in the Room, China and the Future of Latin American Industralization, Stanford University Press.
Goldman Sachs (2003), Dreaming with BRICS: The Path to 2050.
Hill Ch. (2007), International Business Competing in the Global Marketplace 6th ed., McGraw-Hill.
Holland M., Barbi F., (2010), China na America Latina: uma Analise da perspective dos investimentos diretos estrangerios, Escola de Economia de Sao Paulo, March.
IMF, International Financial Statistics on line, www.imfstatistics.org/imf
Kindleberger C. (1969), American Business Abroad, New Haven, London.
Landim R. (2009), Aco chine stoma lugar do brasileiro na AL, Valor Economico.
Leamer, E.E. (1995), The Heckscher-Ohlin Model in theory and practice, Princeton.
Mance H. (2010), Can China savings fund Brazilian growth?, ?Financial Times?, 08.2010, access on-line.
Marghaes H. (2009), ZTE pode direcionar ate USD 2 bn. Para contraltos no Brasil.
Morreira A (2009), Lula faz esforco para elevar investimento da China no Brazil, ?Valor Economico?, May.
OECD,? Recent Developments in China?s Investment Policies?, OECD, 2008, Ch.1
OECD (2008), China?s Outward Direct Investment, OECD Investment Policy Review: China 2008.
OECD on-line statistics
Rozen M. (2008), Chineses na operacao Uruguai.
Suaminen, K. (2008), Connecting Continents: State of Economic Relations between Latin America and Caribbean and Asia ?Pacific, IADB, December.
Twomey M.J. (2000), A Century of Foreign Investment in the Third World, Routledge.
UNCTAD statistics on-line
Vernon R. (1966), International Investment and International Trade in the Product Cycle, ?Quarterly Journal of Economics?, Volume 80 (2), May.
Wilson Center ?China, Latin America, and the United States: The New Triangle?, http://www.wilsoncenter.org/ondemand/index.cfm?fuseact ion=media.play&mediaid=DB0A8C3E-9505-E7C1-37B4DB853806 7C18.